The remedy of this problem is quite simple and has to be solved at the patient level. The cost and the outcome has to be measured which has to cover the entire cycle of care of a particular patient that usually involves a medical team with various expertise.
Regulation is an important factor in the healthcare industry as it ensures the agreement and helps providing proper services to everyone including the HSO (Hospital Supply Organization). The HSO supplies the medically competent equipments and products to the hospital. The regulatory agencies make sure to monitor the facilities of the hospital and in this process monitor the HSO and provides them with the industry regulations changes (Heim et al, 2015).
The state government in US is primarily responsible for healthcare of a person, because of this; the state government has the authority to remove the taxes over drugs and hospital equipments at the state level. The federal government takes care of several areas of healthcare such as environmental protection, drug purity, occupational health, provided food and safety (Kleinbard, 2014).
Both the federal and the state government have to compare the cost and clinical outcomes with the administrative and the business processes at the ground level. The experts have suggested interventions such as demand side action (for example, consumer directed health plans) and supply side action (for example, the alternative methods to pay the healthcare officials). This method is effective for eliminating the waste of the healthcare system such as clinical waste, administrative complexity (Hbr.org., 2017).
Hbr.org. (2017). How the U.S. Can Reduce Waste in Health Care Spending by $1 Trillion. Harvard Business Review. Retrieved 5 September 2017, from https://hbr.org/2015/10/how-the-u-s-can-reduce-waste-in-health-care-spending-by-1-trillion
Heim, B. T., Hunter, G., Lurie, I. Z., & Ramnath, S. P. (2015). The impact of the ACA on premiums: Evidence from the self-employed. Journal of health politics, policy and law, 40(5), 1061-1085.
Kleinbard, E. D. (2014). We are better than this: How government should spend our money. Oxford University Press, USA.