Sultz, H., & Young, K. (2014). Health Care USA: Understanding Its Organization and Delivery (8th Ed.). Burlington, MA: Jones & Bartlett Learning.
Payers are consolidating, providers are merging, and both are vertically integrating, creating a new breed of hybrid clinical and risk-bearing customers for Medtronic. Their struggle to effectively manage outcomes and costs exposes a need that Medtronic can address.
The Physician/Hospital alignment model is the teamwork between physicians and hospitals to achieve the common goal of providing quality care to patients (med synergies). Physician/hospital alignment opportunities have come into play more predominantly in recent years due to quality, financial, and regulatory aspects of healthcare reform. Physicians and hospitals are more motivated to align now because the new healthcare reform requires an improvement on key aspects such as quality, cost, and efficiency. Moreover, an increase in patient numbers, a decrease in reimbursements, and a shift among new physician goals and values have contributed to the drive for this alignment. Physician/hospital alignment can be characterized in the range of tactical to transformational. Tactical alignments can include joint ventures, co-management agreements, volunteer medical staff, etc.
...lenge in the operation of the organizations since there are more clients to be dealt with than was the case before merger. The FTC-UHS merger is also a challenge since there is only one management of all the clinics run in all the countries where other individual organizations were situated; there is need to improve on the management schemes.
The Community South Medical Center, a large urban profit-based health center, is equipped to deal with many comprehensive health care issues. Although the medical center has an excellent reputation, analysis has shown that they are now lacking in shortage of clinical staff, non-interfacing technologies, outdated infrastructures, abatement of JCAHO conformity, and fluctuation in demographics. In addition, many of the local high paying businesses have left the area. This could be due to competitive issues or since the demographics changed, they no longer had the consumer advantage for the services that they offered.
Hospital mergers. Benefits from healthcare center mergers is low hence in most scenario is lower than the value expected. A study conducted in this area found out that the effect was 7% which was a normal reduction for all consumers. When comparing the results with other healthcare centers, it is evident that the savings remain extremely small. This are health centers having competition within the same market. The medical insurance system will benefit greatly if there are a few hospitals. This is because it guarantees an entry that is easy and facilitate management of available insurance data (Tan J. K., 2001). On the other hand it may curtail the maximum collection of revenues from the medical system. This concept affects greatly the service delivery capability of insurance companies.