Competition and Business Conditions in Health Care Markets

Competition and Business Conditions in Health Care Markets

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Changes in health care financing and the business environment have spurred
competition among health care organizations. Patients and health care consumers
demand services from suppliers in local markets, and hospitals and providers
compete for these patients, depending on their health insurance plans. These
forces are leading to changes in existing health care organizational and market
structures, including hospital ownership of physicians practices (e.g.,
vertical integration) and the formation of integrated delivery systems. As a
health care administrator, you must understand implications of this competition
and the often resulting organizational integration.
This week, as you explore competition and business conditions in health
care markets, you compare advantages and disadvantages of vertical integration
in health care organizational structures. You also recommend strategies for the
organizational integration of hospitals and providers.
Week 5 Learning Resources
Required
Resources

Note: To access this week’s
required library resources, please click on the link to the Course Readings
List, found in the Course Materials section of your
Syllabus.

Readings
Getzen, T. (2015).Health economics for the
healthcare administrator(Laureate custom edition). New York: Wiley.
Chapter 8, Hospitals (pp. 172186)
Chapter 12, Financing and Ownership of Health Care Providers (pp. 259287)

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), 964971.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), 19641970.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), 23682378.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
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