Entrepreneurial Health Care Systems

Entrepreneurial Health Care Systems

 The study of different healthcare systems around the world provides an understanding of the difference in the various approaches that countries use so that they can assess this country’s healthcare system.  The healthcare system takes a central place on the continuum of private versus public in terms of delivery of healthcare and financing.  Though the healthcare systems may share certain characteristics, the systems are mainly embraced through the entrepreneurial model, notational health service model and the mandated insurance model.

Many developed nations in Europe have implemented programs that are far much better that the United States. The U.S healthcare systems are characterized by different challenging aspects compared to the systems used by other wealthiest nations. Many of these countries   provide either comprehensive health insurance that are publicly funded or provide   direct health care through the government.  This type of healthcare system is known as the mandated insurance model.  This health system can be seen in the case of countries such as Canada, Finland, Norway, Sweden and Spain that provided national health insurance cover.

These are capitalist’s economies and use a healthcare system that is based on the provision of free health care services of its people. The healthcare plan is controlled by government entities. The citizens surf theses countries receive universal health care coverage services. The costs plan on health is paid by the government’s agencies in charge of the provision of healthcare services through taxes or subscriber premiums. The governments further provide funding to these agencies through funds transfer or grant systems from either the corporate or personal income tax revenues. The doctors receive their payments based on the negotiated fee between the doctors associations and the provisional government. The governments do regulate hospital expenditure. This means that the expenditures are approved and monitored by the governments.

Within the mandated insurance model, the healthcare system can further be classified as the single- payer/national health insurance model as seen in Sweden and Canada. The second category is the multiplayer’s health insurance category that depends on sickness funding so as to provide coverage on health for all people. Countries such as France and Germany use this model (OECD, 2003)

The second type of healthcare system is the national health services, whereby the state is responsible for providing health care. Countries such as Portugal, New Zealand, Greece, Denmark, Italy, United Kingdom, and Turkey use this second type of health care system.  The financing of health care services is through the public funds from taxation and contribution. It can be from the private sector or both.  This means that every individual receives universal coverage through taxation funds. Healthcare is mainly delivered through the public mechanisms such as the medical services, and the publicly owned services. The providers of health care services are physicians employed by the government (Sanders, 2002).

The United State healthcare system falls in its own unique category of mixed systems. This system has both the national health coverage and the traditional elements in sickness insurance.  This system is also found in Switzerland.  The healthcare systems of these countries fall under the entrepreneurial model. It is characterized by the willingness of citizens to take individual insurance covers and to purchase employment based health insurance. The health care delivery in this system has healthcare facilities and providers as the mechanisms and mainly operates within the private sector.  Public and private sources are the main sources of financing the system.

The study of the different healthcare systems shows the intriguing and stark contrast that is from the unique set of social and economic values of these countries. The European countries mainly indicate the social and economic significance within their healthcare systems. Therefore, the central dualities have to be addressed in order to achieve healthcare reforms. The European culture is mainly has a strong sense of social and ethnic responsibility in promoting and protecting the in interest of the public as its main goal. The healthcare systems used by these countries present a differing variation in the costs of healthcare.

Countries such as Switzerland, Netherlands, Italy, France and Demand spend a high percentage costs in the provision of   inpatient services at a higher level than the United States. Despite the variation on the European systems, they share a fundamental vision of health as seen in their strict regulations of the public, mandatory participation, solidarity, value of health, and community based fairness as a central principle (Saltman, 2002).  This belief has in turn led many European countries to emphasis on the efficiency of   its micro-economic sector that is run by the social entrepreneurial principle.

Though United States is the leading country in innovative methods of extending life and has undertaken a ground breaking biomedical technology, only a few of the American people quality health services. The current costs of medical care in the United States are unusually high. There is also a significant health disparity in terms of people’s income and race. The administration of the healthcare system is further characterized by inefficiencies.  Generally, from an n international perspective, the US, is the only country among the wealthiest and industrialized nation that has not guaranteed  its citizens of their health care(Litan, Mitchell, and Reedy, 2007).

The number of uninsured people has been rising especially among those living in Atlanta Georgia and other states dominated by the minority groups.  The economic challenges have made many middle-class people fear for their lack of medical guarantees especially in the way the healthcare costs have been escalating.  The employed people at their working age of 18-60 have opted to drop healthcare coverage due to the increasing rate of cost.

The entrepreneurial capitalism of the United States is mainly characterized by the need of continuous supply of productive and innovative entrepreneurs (Wahwha, AnnaLee, Ben and Gary 2007). This means that there is the need for individuals to establish enterprises for the commercialization of new products, processes or services that will enhance the economic growth.  The United States has maintained a record of encouraging new productive entrepreneurs. There is also a low legal barrier in the establishment of a new business. This is the reason for many health care practitioners have established their own, private healthcare facilities. They also establish these businesses at a low costs.

Despite of the plenty opportunity given to the entrepreneurship, the entrepreneurial economy will have is significant challenges. First, the population will be in constant pressure by the income tax system and more funds will be needed in the financing of various programs such as Medicare and Social Security. The employer-based healthcare system for insurance in the U.S acts as a method of punishing entrepreneurs, workers and large organizations (Bogle, 2005).

Many Americans due to the high costs of insurance covers face limited or unavailable coverage. This makes it difficult for entrepreneurs to employ highly skilled people for fear that some will not agree with the mandated employer insurance cover.  The employers also face a challenging position in tackling with the challenges of the business environment based on the competitors and the size of their business.

The concern in the entrepreneurial health care model of the US is not on the venture capitalists welfare. However, it is on the young, small, and innovative companies established within the disruptive and radical technologies that hinder the form reaching their highest capabilities. There innovations are also no longer recognized leading them to be absorbed by bureaucratic firms that do not share the same entrepreneurial culture or spirit.


Litan, R, Mitchell, L and Reedy, E (2007) Commercializing University Innovations. Retrieved from  http://ssrn.com/abstract=97600
 ON  November 20, 2012
 Bogle, J (2005) The Battle for the Soul of Capitalism. Yale University Press, New Haven Connecticut, and Bromwich, Wahwha, Vi,  AnnaLee Sa, Ben R and Gary G, (2007)  America’s New Immigrant Entrepreneurs, Duke University and University of California at Berkeley
 Sanders, J (2002) Financing and Organization of National Health Systems.” World Health Systems: Chicago:
Saltman, R (2002) The Western Experience with Healthcare Reform. European Observatory on Health care systems.

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