What Agencies Regulate the Health Care Industry?

Regulation of Physicians

• The American Medical Association regulates licensure of physicians. The physicians need a license to practice in the state of their residence. Any disciplinary action against a physician is stored in a central repository known as the National Practitioner Data Bank, which is administered by the federal government. Physicians are also regulated by Health Maintenance Organizations if they are part of it, (HMOs) and also by Medicare. Similarly, there are organizations that regulate other health care professionals, like physical therapists, psychologists, and occupational therapists, in the same manner.
  
  

Regulation of Hospitals and Health Care Institutions

• Hospitals and health care institutions are accredited by the Joint Commission on Accreditation of Healthcare Organizations (JCAHO). The Commission started accrediting hospitals and health care institutions in the 1950s based on the way the hospitals were constructed. However, in the 1960s, the method of accrediting changed and the Commission started taking into consideration the method of operation. Now, the Commission also checks the outcomes of the hospital care. Also, hospitals that are part of the Medicare program are governed by the Emergency Treatment and Active Labor Act. This act ensures that medical treatment is provided to anyone who comes to an emergency room, regardless of the person's abilities to pay for the treatment.
  
  

Regulation of Health Care Finance

• Although the financing of health care is free market with private entities offering health insurance, a third of the U.S. population is insured by government run programs. Even those who have private insurance, one-third of their medical bills are paid via tax subsidies. Health care finance is also regulated by the HMOs, Medicare and Medicaid, so that patients have access to cheaper medical treatment.
  
  

Regulation of Medications and Health Care Products

• The federal government has the onus to ensure the safety of drugs, medications and health care products. However, the regulation of pharmaceuticals is quite different from that of health care services and non-medical health care products. Medications and health care products are checked for safety even before they are commercially available. The U.S. Food and Drug Administration (FDA) is responsible for regulating medications and health care products.
  
  

Regulation of Public Health

• Public health involves mass vaccination, access to clean drinking water, sanitation and workplace safety. Different regulatory bodies handle different aspects of public health. The Environment Protection Agency (EPA) regulates the release of toxic chemicals into the environment; Occupational Safety and Health Administration (OSHA) regulates hazards of toxic and harmful chemicals to ensure workplace safety; and the Centers for Disease Control and Prevention (CDC) are responsible for maintaining a national data bank on public health and conducting investigations into diseases.
  
  

Regulation of Biomedical Research and Funding

• The National Institutes of Health (NIH) has the responsibility for regulating, as well as funding, biomedical research. Nearly two-thirds of the NIH's budget funds research at universities as well as private laboratories. All studies that are funded by the NIH have to be reviewed as well as approved by an Institutional Review Board set up at the concerned university or laboratory.