Balanced Budget Act

Pew Flealth Professions Commission Federal Policy Taskforce. Beyond the Balanced Budget Act of 1997 Strengthening Federal GME Policy The Pew Health Professions Commission San Francisco, California, October 1998. 

In order to analyse the balance in view of the threat of exclusion from public financing, the author devises a demand equation with a two-stage budget allocation. The first step is to choose a therapeutic group, and the second is to choose the differentiated products. The co-payment acts as the price. The main conclusion is that when the product is included in public financing the health service can receive a discount if the political decisions are price-sensitive and the fixed cost of market entry in the event of inclusion is lower than the fixed cost of exclusion. In his study of price-cap regulation, the author insists that the mechanism should be continued in the long term, and that therefore it is necessary to account for the entire lifetime of the product and consider a discount factor. All this takes as its point of departure Abbott s 1995 model. 

The chart presents pressures such as risk, time, and budgets that need to become part of the optimization process of a supply chain. For example, timeliness can be prohibitively expensive and therefore impractical. Therefore, it is the balancing act of all these resources and pressures, optimized in conjunction with each other, that will optimize the total supply chain. Before identifying the perfect supply chain, however, let us take a short look at some of the history associated with the development of supply chains. 

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