Isabella Restifo
11/24/2025
ECO 435
ECO 435 Short Essay
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I chose the article from the Economist “Doctor Walmart Will See You Now” that focuses
on changes in the healthcare system as more affordable options become available. A major
concern within healthcare is the affordability of services as it is a common practice for doctors to
use the fee for service payment model. The United States is known to spend most of its money
on healthcare services but there is no motivation for providers to ensure their patients' recovery.
Although a doctor's goal is to provide their patients with the tools for recovery they receive a
monetary reward no matter the results of the visit. Many believe that using a model that
prioritizes value based care would be more beneficial as it allows the providers to gain a share of
the savings that are acquired. These savings would come from the decreased amount of services
being provided when individuals are healthier. Due to this many retailers have begun to partner
with healthcare providers that utilize the value based approach as a way to give better quality and
less expensive services. Along with this these retailers have created better ways to communicate
with their patients to ensure their healthcare status with mobile apps and reminders.
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This article directly describes the financial and operational issues within the healthcare
system. Insurance programs commonly utilize fee for service when it comes to providing
services and there is no benefit to the provider if the individual does not return for another
appointment due to being healthier. This has inherently led to health services being a major cost
for most individuals within the United States leaving little room for outside expenses. Many
people have decided to stop using health insurance and have begun to use more of the services
being provided within retail stores. This is due to convenience and affordability as the primary
care services they offer are expanding. Value based services have proven to save consumers
money and reward providers with the extra savings from previously used services. Although this
does prove beneficial to the individual and retail companies it can be extremely damaging for
those who are still utilizing healthcare insurance as those in poor health will most likely be paid
more for the services as healthier individuals no longer feel the need to have the insurance.
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I would suggest that the healthcare system as a whole should switch over to the Value
Based Model as it would provide more benefits to the consumers and the providers within the
system. Taking the time to focus more on providing beneficial services and checking in with
patients over time can save the patient and the company money. Many other countries like South
Korea are shown to spend significantly less than we do on healthcare services and our costs are
projected to increase in the future. Most of this spending comes from the federal programs
Medicare and Medicaid. I think investing in mobile apps that track an individual’s health day to
day and remind them of upcoming appointments can promote healthier lifestyles. In general the
value based model will lower costs and create a more patient centered experience.