Kaiser Permanente Case Study

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the administrators. An added benefit is administrators, founders, employees, and members are not personally liable for nonprofits debts. The limited liability of a nonprofit is protected by the law from personal assets being claimed by creditors. Another missed opportunity is the ability to solicit charitable donations to the public. Growing charitable donations is in other words is another stream of income for organization purposes. The overall ability for Kaiser Permanente to rein-invest in their infrastructure gives them a big advantage over Community Health Systems, especially in the healthcare industry. The healthcare industry alone faces rapid change sparked by the Affordable Care Act and many newly introduced regulations. With much more …show more content…
Numbers and size of Kaiser speaks for its self especially with the astonishing member growth rate trumping majority of organizations with a 5 star CMS rating. The diversification of Kaiser alone makes it a safer pick with having 3 entities of being the health plan, hospital, and medical group. The liability and market exposure are limited due to the infrastructure of the organization. The United States health care system is under great scrutiny and needs rapid change to remain long term sustainability. The organizations that can adapt at a faster rate will have the advantage in the industry. The scary thing is with Medicare being the primary health care payer, which is reducing rates and moving towards a value based system. If organizations don’t adapt to these standards quickly they can find themselves out of …show more content…
The transparency of the organization is clearer allowing no underlying motives when conducting business. The member has full access to information of the organization. The administrator along with provider is released of any liability down the road. The third party payers can seek lower reimbursement rates and trusts Kaiser is highly invested in preventative care because they are also a health plan. Third party payers make more money if their patients are healthy and out of the hospitals. The higher profit margins of Kaiser along with nonprofit classification give them the ability focus on the patient experience to increase reimbursement. The only downfall of the organization is the stricter regulations and publicity of data, process measures, and outcome measures. The fact of the matter is, all organizations in healthcare are highly regulated so both infrastructures face the same obstacles. It all comes down to more risk more reward for making a choice between for profit Community Health Services and the nonprofit Kaiser

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