Final answer:
Regulatory agencies manage healthcare costs, ensure minimum levels of care, uphold safety and quality standards, navigate liability issues, and balance payment models such as fee-for-service and HMOs. They function to protect the interests of the public, healthcare providers, and manufacturers.
Step-by-step explanation:
Regulatory agencies play a critical role in shaping the relationship between healthcare systems and levels of care. One of the primary purposes of healthcare regulation is to control increases in healthcare costs. For example, the Affordable Care Act (ACA) introduced a cap on the amount healthcare providers can spend on administrative costs. Furthermore, it mandated a switch to electronic medical records (EMRs), which are expected to reduce administrative costs and improve efficiency.
Regulatory agencies also ensure that healthcare systems provide a minimum level of care and adhere to safety and quality standards. They hold healthcare providers accountable for their performance and compliance with healthcare laws and policies. Regulations also address liability issues in healthcare, ensuring that there are standards and protocols for the use and maintenance of medical equipment, which protects patients, workers, and manufacturers.
In the context of various payment models, such as fee-for-service and health maintenance organizations (HMOs), regulatory agencies work to manage adverse selection and ensure equity and fairness in how healthcare services are provided and financed. These agencies, like FDA and OSHA, are integral in safeguarding public health and consumer interests.