Certified Rehabilitation Registered Nurse (CRRN) Practice Exam

Cost-control efforts in the US healthcare system are characterized by a combination of government regulation and market-based competition. What is an example of a regulation-based cost-containment strategy?

1. Increased efficiency of services

2. Restrictions on the supply of physicians

3. Consumer health education

4. Insurance premium reductions

The correct answer is: Restrictions on the supply of physicians

The example of a regulation-based cost-containment strategy is the implementation of restrictions on the supply of physicians. This approach is designed to manage healthcare costs by influencing the number of providers available within a given market. By limiting the number of practicing physicians, healthcare regulators can help control the overall supply, which can, in turn, affect the cost of services by reducing competition among providers. In the context of the healthcare system, such restrictions may take the form of policies that regulate the number of medical licenses granted, set specific quotas for certain specialties, or even establish geographic limits for practitioners. These regulatory measures aim to ensure that the supply of healthcare professionals aligns with the demand while attempting to contain excessive healthcare spending that can be driven by an oversupply of providers and subsequent competition for patients. While increased efficiency of services, consumer health education, and insurance premium reductions are important aspects of improving healthcare access and affordability, they do not fall under the category of regulation-based efforts like restrictions on physician supply. Instead, those options are generally more aligned with market-driven strategies or initiatives focused on improving consumer choices and education within the existing framework.