Use the cost information presented in Exhibit 8 of this chapter to assist you in preparing your responses to this problem.

Various stakeholder groups are interested in the cost and quality of health care. As evidenced by the national debate over health-care reform, patients, hospitals, physicians, employers, traditional insurance companies, pharmaceutical companies, and health maintenance organizations often have goals and objectives that seem incompatible. Though cost accounting information is one source of input for decision makers, many factors, including clinical and political, affect decisions made by health-care providers.

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A. Evaluating Exhibit 8, identify a key cost driver that a physician may control as a result of his or her orders. This particular driver affects nursing, food services, and laundry/linen costs.

B. Though pharmaceutical costs are not included in Exhibit 8, many health maintenance organizations encourage patients to request generic, rather than name brand, medications. What are the ethical issues associated with hospital length of stay and medication decisions?

C. In your opinion, should legislators and others who make health-care decisions consider cost when determining the amount and availability of care? Why or why not?