Health Care Organizational and Market Structures

Health Care Organizational and Market Structures

week 5 dicussion 6400

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Discussion: Health Care Organizational and Market Structures
Note: This is a Post First assignment. You are required to post your original post before the discussion board opens for your review.
In an industry as complex as health care, organizational and market structures must be carefully considered. To participate in accountable care organizations (ACOs)
and other value-based care initiatives, for example, hospitals need to have a coordinated care organization model across ambulatory care, acute care, and other
settings. Developing these coordinated relationships may require vertical integration to ensure efficient utilization. Although there are many advantages to this
integration of organizational and market structures, there are some disadvantages for both the hospital and the providers. For this Discussion, examine the following
scenario and recommend strategies for the organizational integration of the hospital and practice.
Scanario:
You are the chief financial officer (CFO) of a hospital located in a highly competitive, urban market split with two competing hospitals. The hospital is considering
purchasing or affiliating with a large physicians’ practice. Your hospital has 30% market share, but does not currently have any owned/employed physicians. Private
insurers and Medicare are aggressively pushing value-based reimbursement under ACO contracts, and the one competing hospital has already acquired a large physicians’
practice.
To prepare for this Discussion:
Analyze the provided scenario. What are the advantages and disadvantages of the vertical integration of the hospital and physicians’ practice? What economic factors
should be considered?
Consider strategies for the organizational integration of the hospital and physicians’ practice. Be sure to address the economic factors you identified.

write a cohesive response to the following:
Compare advantages and disadvantages of the vertical integration of the hospital and physicians’ practice, including economic factors that should be considered. Then,
recommend strategies for the organizational integration of the hospital and practice. Defend or argue your recommendations using economic principles.
Support your response by identifying and explaining key points and/or examples presented in the Learning Resources.
learning resources
equired Readings
Getzen, T. (2015). Health economics for the healthcare administrator (Laureate custom edition). New York: Wiley.
Chapter 8, “Hospitals” (pp. 172–186)
Chapter 12, “Financing and Ownership of Health Care Providers” (pp. 259–287)
Colla, C. H., Lewis, V. A., Shortell, S. M., & Fisher, E. S. (2014). First national survey of ACOs finds that physicians are playing strong leadership and ownership
roles. Health Affairs, 33(6), 964–971.
Note: Retrieved from the Walden Library databases.
Cutler, D., & Scott Morton, F. (2013). Hospitals, market share, and consolidation. Journal of the American Medical Association, 310(18), 1964–1970.
Note: Retrieved from the Walden Library databases.
Fisher, E. S., Shortell, S. M., Kreindler, S. A., Van Citters, A. D., & Larson, B. K. (2012). A framework for evaluating the formation, implementation, and
performance of accountable care organizations. Health Affairs, 31(11), 2368–2378.
Note: Retrieved from the Walden Library databases.

Healthcare Financial Management Association. (2014a). An HFMA value project report: Acquisition and affiliation strategies. Westchester, IL: Author. Retrieved from
http://www.hfma.org/WorkArea/DownloadAsset.aspx?id=23451
An HFMA Value Project Report: Acquisition and Affiliation Strategies by Healthcare Financial Management Association. Copyright 2014 by Healthcare Financial Management
Association. Reprinted by permission of Healthcare Financial Management Association via the Copyright Clearance Center.

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