Porter Health Care Case Analysis

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Recommended: Porter’s five force analysis

Like Porter suggested I do agree that many efforts to reduce the health care costs are ineffective because organizations don’t know how to measure the cost properly. The organizations confuse cost with how much they get paid, they add up the costs around departments, not around a patient. Like Porter said they allocate the costs improperly with all kinds of bias. The insurance companies and the governments reimburse for procedures performed but not based on the outcome achieved. I think what Kaplan said is true. I agree with his statement. The definition of costs should be costs within the system and the patient should be the fundamental costing unit. When the government talks about costs they mean their costs what they to spend to reimburse

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