Health care economics is in a state of turmoil, as a result of dynamic changes occurring in the health services environment. The contemporary health services sector is com prised of a wide variety of health care providers (Markey, & Shafran, 1986). Health maintenance organizations (HMOs), inde pendent health care professional practitioners (both physician and non physician), behavioral medicine clinics, nursing homes, and general acute care hospitals are among the major components of the health services sector (Markey, & Shafran, 1986). A major and growing source of change for health care economics is the presence of corporate health care providers as major players in the health services sector (Markey, & Shafran, 1986).
There are significant problems associated with the growth of the for profit segment of the health services sector. One of the potential problems often cited with respect to the growing role of for profit health services organizations is the tendency for such institutions to target only the most lucra tive health care business. When for profit health services organizations are successful in this type of marketing effort, the non profit health services organization is saddled with the responsibility for providing health care to those individuals
1 2in society who are least able to fund their own care. The fact that a large proportion of these individuals are not covered by health care insurance, together with the increasing reluc tance on the part of government to fully fund health care ser vices places and increasingly large burden on the non profit institutions.
Increasing costs related to both health care and health care insurance, together with growing restrictions on govern ment funding for health care services for the needy create an environment in which more and more people lose access to healthcare services. Changes on either the funding side or the treatment side of the equa...