Woodstock Theological Center Publishes Ethical Issues in Managed Health Care Organizations

CONTACT: woodstock@georgetown.edu
For Immediate Release/January 22, 1999

The Woodstock Theological Center announced today the publication of Ethical Issues in Managed Health Care Organizations by the Georgetown University Press. This publication is a consensus statement to which all of the 54 seminar participants subscribe after two years of study and four major conferences. Participants represent all aspects of managed health care: physicians, nurses, and other clinicians, executives and medical directors of health care organizations, corporate purchasers of healthcare plans, directors or presidents of national associations, and academic experts in ethics and economics. The document reviews the ethical problems that decision makers in managed care organizations confront, examines the origins and complexity of these problems, and recommends a framework for assessing and balancing the competing values at stake in each issue. The publication also offers suggestions for decision-making processes that can help professionals working in a managed care environment respect and appreciate the various perspectives that their fellow professionals bring to these conflicts, and negotiate their way to workable, ethically sound policies, decisions, and actions. The fourth in a series of Woodstock business ethics seminars, the study was funded by The Robert Wood Johnson Foundation.

Jesuit Father James L. Connor, director of the Woodstock Theological Center says, "We hope the document will help to spur a national debate and discussion not only about the decisions that are being made by private actors in the health care system, but also about the processes being used by those actors to reach those decisions. We believe that to be ethical, as well as to be politically viable in the long run, the decision-making processes used by clinical and administrative decision makers in managed care must have mechanisms for systematically taking into account the impact of their decisions on all stakeholders, and must be open to scrutiny by those stakeholders."

Included in the 42-page publication are examples of ethical dilemmas or "case studies." The examples are fictional, but are based on the actual experiences of the practitioners who participated in the Woodstock project. The back pocket of the publication contains a handy "pull-out" card that summarizes the set of questions that managed health care executives and managers should ask themselves in the process of making day-to-day decisions that involve ethical conflicts.

The first section of the publication addresses the rapid and revolutionary transformation of the health care delivery and financing system in the United States. Because of the massive shift by the purchasers of health care benefit packages away from a "fee-for-service" system towards various kinds of managed health care plans, emerging new organizational arrangements have changed the day-to-day operating environment for health care system managers and executives, physicians and clinicians, and patients. Consequently, executives, clinicians, and other decision makers face a continual stream of competing demands and value conflicts. The fact that decision making in the managed care context is often so inherently conflict-laden has made it increasingly difficult for managed health care administrators to sustain public trust. Yet, participants in the Woodstock project came to understand that if such conflicts are confronted directly and dealt with in a well-considered way that responds to all of the legitimate stakeholders and affirms their values, managed care "may hold out a hope of providing a new vision for sustainable, efficient, socially responsible, and ethically sound health care delivery in the United States." To have any hope of reaching that goal, managed care organizations must institute decision-making processes that promote ethical choices.

Section two, "Roots of the Ethical Dilemmas," reviews how and why managed care has emerged as an alternative to traditional "fee-for-service" insurance.

Courses of action that can help decision makers reach workable and ethically acceptable resolutions are discussed in section three. An eight-step process for ethical decision making is outlined.

Section four, "Putting the Process to Work," reports on the efforts of one group of Woodstock seminar participants to make a decision, using the eight-step process, on a specific managed health care case study. These efforts are presented in narrative form to highlight the complexities of the case, to illustrate the practical use of the process, and to capture the moral and emotional issues that the participants confronted.

In the publication’s final section, the seminar participants, while affirming that "managed care is potentially a morally acceptable, even beneficial enterprise," note that the system is still evolving. The ultimate moral and political judgment about managed care as a system will depend on how the industry evolves over the next few years.

Ethical Issues in Managed Health Care Organizations is available from the Woodstock Theological Center for $8.00 a copy, $2.00 postage and handling. Bulk rates are available.

Previous Woodstock business ethics seminar publications are Ethical Considerations in the Business Aspects of Health Care (1995), Creating and Maintaining an Ethical Corporate Climate (1990), and Ethical Considerations in Corporate Takeovers (1990). More than 20,000 copies of these publications have been sold or distributed.

The Woodstock Theological Center, located on the Georgetown University campus, is a nonprofit independent research institute sponsored by the Society of Jesus. The Center addresses topics of social, economic, and political importance from a theological and ethical perspective.

Editors’ note: review copies of Ethical Issues in Managed Health Care Organizations are available upon request.

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