Reimbursement policy through reforms like Affordable Care Act is completely changing the traditional fee for fee value to fee for service program. The government has been urging providers to adopt the policy by promoting integrated networks. Reimbursement policy has facilitated coordination of care and strategic reasoning as well. In addition, the sector has witnessed decreased spending within the integrated systems with no negative impacts on the health outcome of a patient. Even though the initiative has improved the healthcare delivery, the financial performance of the systems has reported decreased gains in many instances (Auerbach et al., 2013). Private providers are finding it difficult to adopt the change due to the potential decrease in their benefits. Attention to the community has improved, but there are new risks created that should be addressed.
Changes within the hospital sector significantly affect general management within hospitals. The horizontal ...
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...failure of vertically integrated systems to account for greater degree risk created by providing chain delivery services to a wide range of health services other than specializing in one product. According to Williams and Torrens (2008), some vertically integrated systems have established their health plans. However, financial and legal perspectives that transfer the risk to the institutional provider have affected the trend.
The integrated delivery system is associated with certain issues in both risk management and financial perspective. New liabilities continue to evolve as the systems become integrated. Despite the challenges, many opportunities emerge that turn such risks into advantages. The government needs to be careful when implementing reform by first analyzing risks versus benefits and approving reasonable strategies that the majority support.
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