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The Role of Government in Health Care: History, Legislation, and Contemporary Issues

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The Role of Government in Health Care

Introduction

The government plays a central role in shaping health care in the United States through legislation, funding, regulation, and direct service provision. Understanding this role is essential for both health-care professionals and consumers to participate in policy development and advocacy.

History of Government Involvement in Health Care

Early Health-Care Legislation

  • Origins: Early health-care decisions were made by monarchs, religious authorities, or experts, evolving into laws based on repeated judgments.

  • Development of Laws: U.S. health-care laws initially focused on individual and property rights, later incorporating principles from health-care leaders such as Hippocrates, Dorothea Dix, Clara Barton, and Florence Nightingale.

  • Standards of Practice: Standards based on scientific evidence became the foundation for consumer protection laws in health care.

  • Early Legal Issues: Included definitions of health for slaves, methods of care delivery, and the role of caretakers, who were often family members or self-taught individuals.

  • First Hospital: The first hospital for the poor was established in Philadelphia in 1750.

Development of Hospitals and Nursing Schools

  • Bellevue Hospital School of Nursing (1873): Established in New York, promoting Nightingale principles.

  • American Red Cross (1881): Founded by Clara Barton, focusing on community health.

  • Professionalization: Formation of the American Medical Association, philanthropic support, and the establishment of nursing codes of ethics.

  • Licensure: By 1903, state licensure was required for nursing practice; the National League for Nursing (NLN) and American Nurses Association (ANA) were established.

  • Hospital-Centered Care: Hospitals became primary centers for care, with specialization and the creation of service units (medical, surgical, obstetrical).

  • Hill-Burton Act (1946): Provided grants for hospital construction.

  • Modern Nursing Education: Shifted to college and university settings, with standardized national competence exams for licensure.

Multidisciplinary Health-Care Team

Team Composition and Goals

  • Members: Doctors, nurses, laboratory and radiology technicians, social workers, and others.

  • Goals: Ensure optimal physical, social, and mental well-being through comprehensive care.

  • Communication: The plan of care is a key tool for communication among team members and with patients/families.

  • Standards of Care: Developed by professional organizations to ensure quality.

Nurse Practice Acts

Scope and Regulation

  • Definition: State-established laws defining the scope and limitations of nursing practice.

  • Variation: Each state has its own act; nurses must know the laws of the states where they practice.

  • Nursing Licensure Compact (NLC): Allows nurses to practice in multiple states with one license (as of 2020, 34 states participate).

Patient’s Bill of Rights

Consumer Protections and Responsibilities

  • Consumer Bill of Rights (2009): Emphasizes fairness, problem resolution, and patient involvement.

  • Key Rights:

    • Choice of providers

    • Access to emergency services

    • Participation in treatment decisions

    • Respect and nondiscrimination

    • Confidentiality

    • Resources for complaints and appeals

  • Informed Consent: Patients must receive understandable information about procedures; nurses often witness consent.

  • State and Federal Laws: Minnesota was the first state to enact a Bill of Rights for Patients (1973); the Affordable Care Act (2010) expanded patient protections.

The Patient Care Partnership (AHA, 2003)

  • High-quality care, clean and safe environment, involvement in care, privacy, and assistance with billing and insurance are emphasized.

  • Patients are encouraged to communicate openly and participate in decision-making.

Accreditation and Quality Assurance

Hospital Accreditation

  • Purpose: Accreditation ensures hospitals meet predetermined standards of care.

  • Joint Commission Criteria: Includes infection control, medication management, care provision, patient rights, emergency management, human resources, information management, leadership, life safety, medical staff, nursing, performance improvement, and record-keeping.

  • Funding: Non-accredited hospitals may not receive state or federal funding.

Government Structure and Health Care

Federal, State, and Local Roles

  • Constitutional Basis: Article 1, Section 8 empowers the federal government to promote general welfare, including health.

  • Direct Services: Provided to specific groups (e.g., Native Americans, military, prisoners), and through public health clinics.

  • Financing: Government funds health education, Medicare, Medicaid, Social Security, and research grants.

  • Information: Agencies like NIH and CDC collect and publish health data.

  • Policy Setting: USDHHS oversees most health-care legislation; specialized agencies address environmental and occupational health.

Key Federal Legislation

Year

Legislation

Main Purpose

1798

Marine Hospital Service Act

Medical care for merchant marines

1901

Pure Food and Drug Act

Regulation of food and drugs (became FDA)

1935

Social Security Act

Public health services, Medicare, Medicaid

1946

Hill-Burton Act

Hospital construction and care for uninsured

1965

Medicare & Medicaid (Title XVIII & XIX)

Insurance for elderly, disabled, and poor

1970

Occupational Safety and Health Act (OSHA)

Workplace and environmental health

1996

Health Insurance Portability and Accountability Act (HIPAA)

Insurance portability, privacy, preexisting conditions

2010

Patient Protection and Affordable Care Act

Expanded coverage, insurance reforms

2017

American Health Care Act

Revisions to Affordable Care Act

Additional info: Table includes selected highlights; see full text for more legislation.

Health-Care Delivery Systems and Costs

Rising Costs and Cost Containment

  • Increasing Costs: Health-care costs have risen steadily, threatening the sustainability of public programs like Medicare and Medicaid.

  • Cost Controls: Focus on national health goals, resource use, prescription costs, and changing population needs.

  • Managed Care: Organizations like MCOs, HMOs, and PPOs aim to standardize and control costs.

Private Health Insurance

  • Premiums: Rising costs lead to higher insurance premiums, affecting employers and consumers.

  • Economic Impact: Employers may pass costs to consumers, increasing the cost of living.

Health Promotion and Self-Care

Prevention and Early Intervention

  • Healthy People 2030: National initiative focusing on prevention and wellness.

  • Human Genome Project: Advances in genetics may help predict and prevent chronic diseases.

Resurgence of Self-Care

  • Historical Roots: Self-care, midwifery, and lay practitioners were common in the 18th and 19th centuries.

  • Nursing Theories: Dorothy Orem (self-care model), Martha Rogers (holistic care), Jean Watson (nurse-patient relationship).

  • Modern Trends: Self-care guides, nutrition, and exercise classes are widely used; complementary and alternative medicine (CAM) is increasingly integrated.

  • Community Outreach: Programs target local needs for screening and education; culturally competent care is emphasized in training.

Global Health

International Organizations

  • United Nations (UN): Formed in 1945 to promote human rights, peace, and social advancement.

  • World Health Organization (WHO): Established in 1946 to set global health policies and research agendas.

Political Influence and Advocacy

Political Action Committees (PACs)

  • Role: PACs influence legislation by supporting lawmakers who advocate for health-care issues.

  • Nursing Involvement: Nurses participate in PACs, serve as elected officials, and advocate for patient and professional needs.

Key Terms and Definitions

  • Accreditation: Recognition that an institution meets specific standards of care.

  • Scope of Practice: Legal limitations and customary skills defined for a profession.

  • Informed Consent: Patient's right to receive information and agree to procedures.

  • Medicare: Insurance program for elderly and disabled, funded by payroll deductions.

  • Medicaid: Needs-based program for low-income individuals.

  • Managed Care Organization (MCO): Controls health-care costs through standardization.

  • Health Maintenance Organization (HMO): Provides care for prepaid members.

  • Preferred Provider Organization (PPO): Contracts with providers for care at agreed rates.

Sample Table: Federal Legislation Related to Health Care

Agency/Program

Function

Managed Care Organization (MCO)

Controls the cost of health care

Health Maintenance Organization (HMO)

Provides care for prepaid members

Preferred Provider Organization (PPO)

Provides care to a specialized group for a fee-for-service rate

Review Questions (with Answers)

  • The “Plan of Care” for a multidisciplinary health-care team is:

    • A. a tool for communication between health-care providers concerning a patient/client/family.

    • B. a description of standards of care for a client.

    • D. a compilation of goals or needs of a client and planned approach to meet those goals.

  • Which of the following is true of the Nurse Practice Act:

    • B. defines the scope of practice of a nurse within one state.

    • C. may include a multistate licensing agreement.

    • D. defines the functions and limitations of nursing actions.

  • The functions of the U.S. Department of Health and Human Services (USDHHS) include:

    • A. operating clinics for poor/indigent patients.

    • B. writing most health-care legislation.

    • C. overseeing Healthy People 2030 document.

  • Political action committees (PACs) influence health care by:

    • B. supporting legislators who vote on health-care policies.

Summary of Key Points

  • The U.S. government’s role in health care is established in the Constitution and expanded through federal and state laws.

  • Standards of practice and accreditation ensure quality and safety in health care.

  • Major legislation has shaped the structure, funding, and delivery of health care.

  • Cost containment, health promotion, and self-care are central to current and future reforms.

  • Political advocacy and global cooperation are essential for ongoing improvement in health care.

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