Question

why it is important to understand the legal and regulatory implications associated with the health care system (health care delivery and health insurance)?

Answer 1

Answer: The health care industry is a highly regulated industry with strict laws and regulations. Health care is directly related with the health and well being of the general public. Hence it is essential to have such strict regulatory environment. It is important for the various stakeholders in the industry to understand the legal and regulatory implications associated with the health care system because not understanding them can attract a legal and regulatory action. For example if a hospital does not takes into account these laws and regulations, then there are possibilities that they may face an action by the authorities. Secondly understanding these implications can also help the stakeholders to improve quality of health care services as most of these laws and regulations are aimed at improving quality of the health care services.   This understanding can also help in developing industry’s best practices and standards that can help in creating uniformity and quality service in the sector. The rules and regulations also act as a guide to the players in the industry for developing their businesses and take ethical decisions. Thus understanding of the legal and regulatory implications associated with the health care system can help in achieving a number of desirable outcomes.