The Community Health Systems (CHS) is one of the largest healthcare group in the United States with over 135 hospitals in 29 states and in England [1], with approximately 20,000 beds [2]. CHS serves more than 55% of the market with most affiliated hospitals being the only healthcare provider. While closing the accounts on 31st December 2012, the company had under its belt 162 hospitals out of which there were 156 general, acute care hospitals, 5 psychiatric hospitals and one rehabilitation center with 41,198 beds. CHS also operates 112 surgical centers Most of the centers provides high end services with well trained medical staff [3]. Community Health Systems started in 1985 and in the short period of 35 years has grown to become one of the largest healthcare group in the States. The company went public in June 2000 at $13 a share. The companies biggest growth phase occurred in 2007 …show more content…
CHS needs to identify the reasons for its high expenses and try decreasing costs, to catch up with its other industry rivals considerably improving in 2012. This is the most concerning of all ratios as the revenues earned by HCA is only twice the amount of CHS, but the profit margins of HCA amounts to seven times the value due to the lesser profit margins. However, profit margins have increased from 2011, after the federal inquiry which caused it to drop after 2010. The return on equity ratio of CHS is 9.50% which is higher than the industry average of 8.74%. This is a good value but the industry average is less due to the negative ROE of HCA holdings. If this is not considered the industry average would be 11.28%, which results in a lesser return on equity ratio. The earnings per share value of the company is 0.78 in 2012 and has increased from .63 in 2011. Long Term Solvency
LifePoint Hospitals, Inc., through its subsidiaries, operates general acute care hospitals in non-urban communities in the United States. The company’s hospitals provide a range of medical and surgical services comprising general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services, and pediatric services, as well as specialized services, such as open-heart surgery, skilled nursing, psychiatric care, and neurosurgery. Its hospitals also offer outpatient services, including same-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine, and lithotripsy. The company also owns and operates a school of health professions with a nursing program and a radiologic technology program. As of December 31, 2010, it operated 52 hospital campuses with a total of approximately 5,915 licensed beds in 17 states. The company was founded in 1997 and is headquartered in Brentwood, Tennessee. Lifepoint Hospitals Inc. (NasdaqNM:LPNT) operates independently of HCA Inc. as of May 11, 1999.
Moreover, the decision was strategic for the business as the change will enable the company to become more reliable as a health care provider than its previous bad reputations and image. Thus, the company will be capable of increasing its image and reputation that will further increase its market share hence increase its competitive
According to National HealthCare Corporation (2016), the organization also generates revenue by managing seven skilled nursing facilities, three assisted living facilities, and one independent living facility owned by third-party operators. Additionally, they have a partnership agreement and a 75.1% non-controlling ownership in Caris Healthcare. Caris Healthcare specializes in hospice care and has 26 locations in four states. Further, NCH provides accounting and financial services to 20 skilled nursing facilities for small operators. Lastly, the organization operates four regional pharmacy operations. These pharmacies serve 56 owned facilities, six managed facilities, and 13 third party entities.
Standing for consumer value stores, CVS has now become the largest healthcare provider with more than 9,600 stores throughout forty-nine states, Brazil, the District of Columbia and Puerto Rico. Within the past ten years, their acquisitions with Omnicare, Eckerd Stores, MinuteClinic, and Target have led to the growth
The health care organization with which I am familiar and involved is Kaiser Permanente where I work as an Emergency Room Registered Nurse and later promoted to management. Kaiser Permanente was founded in 1945, is the nation’s largest not-for-profit health plan, serving 9.1 million members, with headquarters in Oakland, California. At Kaiser Permanente, physicians are responsible for medical decisions, continuously developing and refining medical practices to ensure that care is delivered in the most effective manner possible. Kaiser Permanente combines a nonprofit insurance plan with its own hospitals and clinics, is the kind of holistic health system that President Obama’s health care law encourages. It still operates in a half-dozen states from Maryland to Hawaii and is looking to expand...
As individuals, we tend to hope for the better but that is just hope. Reality could bring unpredictable situations at any given time. When I wake up in the morning, I have no idea of what could surface in my healthcare. I can be doing great today and be on the verge of a healthcare crisis the next. Moreover, the healthcare industry does not always provide quality care and cost are unknown (Porter 2009, 110). If you have insurance, you are somewhat ready for unpredictable happenings but if you are uninsured, then your actual cost for services increases. The healthcare arena is always a topic of discussion for improving. Quality of care needs to be priority as we shift from a volume to value based care (Porter 2009, 112). Accountable Care Organizations (ACO’s) is a great example of a healthcare model that is creating value. ACO’s work by providing specialized care to Medicare patients by providing superior care that lowers overall cost (Devers 2009). Maybe other health care sectors could follow ACO models in the
It would be necessary for a hospital administrator to look closely at ways to lower healthcare costs and provide more efficient care when a large employer like BRPP states they are thinking of relocating their employee inpatient hospital services to a company like InduShealth. InduShealth is offering substantially lower prices for several surgical procedures and a U.S. hospital administrator would not want to lose this large consumer population if it was possible to find more efficient methods of providing healthcare to their patients (McLaughlin & McLaughlin, 2008). One pricing strategy that a hospital administrator could advocate for is a bundled...
...s will need to focus on pay-for-performance initiatives, as CMS will reduce annual payments by 0.4 percent if the ten quality measures are not submitted (Buchbinder & Shanks (2007). The next generation of health care administrators will be judged on these competencies as they continue to develop into experienced health care administrators.
Healthcare is one of the most dynamic industries in our great nation. To truly understand just how dynamic the industry is, one needs to understand that healthcare in and of itself is a living, breathing industry that is ever changing and conforming to meet the ideals set forth from a broad group of stakeholders. When one looks at the evolution that healthcare has undergone in the past 165 years, the picture of the true dynamics of this industry is painted. One must take this evolutional history into account when looking at the next ten years in our industry. When looking at these evolutional processes, one can see that the systems have changed as our country and its people have required it to (Williams & Torrens, 2008). When looking at how this industry will change or evolve over the next decade, one can ascertain that it will be by the demands of those involved that change will come.
Similarly, in rural areas, the health care services were organized and financed through the Cooperative Medical System (CMS), as a part of Collective agriculture production system and social services. The main characteristic of CMS by its collective financing, prepayment system and health service organization through a three tier system with a vertical administration including “barefoot doctors” referred as providers of primary health care and prevention services, township health centers – second level of health care facilities and county hospitals - third level of health care facilities. The funding scheme of CMS included premium assessment, depending on benefit structure of the plan and the local community’s economic status, collective welfare fund and subsidies from the upper level gove...
Increasing prices for medical treatments, consultations, and drugs is another element in increasing health care costs. Increasing prices of health care services and drugs were the main reason for increasing health care expenditures between 2009 and 2010. Poor productivity is another element of increasing health care costs. Because there is little or no intervening growth in productivity gains for health care, health care costs would increase over time; and because of inelastic demand health care expenditures would also increase (Baumol, 1988). Because it is difficult to measure value of health care service, it is very difficult to evaluate productivity gains in health care. Referrin...
Trinity Community Hospital community health assessment needs was obtained from input the hospital CEO and senior management obtained input from medical staff members and community leaders to develop a vision for the hospital. A five-year plan identified orthopedic, oncology and cardiology services needed to be developed in order to better serve the community needs. A five-year targeted outcome for these services was outlined along with the level of capital investment required to develop these services. Lastly, financial analysis was conducted to determine if sufficient margin will be generated for future growth. A detail analysis of orthopedic service line is included in this paper to determine the feasibility of the proposed service line.
Nembhard, I. M., Alexander, J. A., Hoff, T. J., & Ramanujam, R. (2009). Why Does the Quality of Health Care Continue to Lag? Insights from Management Research. Academy Of Management Perspectives, 23 (1), 24-42. doi: 10.5465/AMP.2009.37008001
According to Harry A. Sultz and Kristina M. Young, the authors of our textbook Health Care USA, medical care in the United States is a $2.5 Trillion industry (xvii). This industry is so large that “the U.S. health care system is the world’s eighth
Barton, P.L. (2010). Understanding the U.S. health services system. (4th ed). Chicago, IL: Health Administration Press.