Strategic Alternatives Decision making, corporate strategies, and evaluating goals and initiatives in the healthcare industry are greatly influenced by the Affordable Care Act and other recent legislation passed during the last ten years. Not only did the number of insured individuals increase, organizations are now forced to contain costs while increasing the health outcomes and experiences of the individuals utilizing the services. While the overall goals are the same for each organization, how each organization reaches the goals is as different as each individual organization. This paper will discuss five articles related to the strategic alternatives in health care organizations and provide information on how the information may be helpful to an
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Employers are no longer providing the rich open network plans to their employees. Instead, many employer sponsored plans have smaller networks and the employee is responsible for paying more out-of-pocket expenses as the deductibles are now significantly high. Additionally, as the United States population ages into Medicare and Medicaid in many states is expanded, the opportunity for revenue for many healthcare organizations is shrinking. According to Kaufman (2011), with the diminished opportunity to shift costs, healthcare organizations need to maximize their ability to generate income now in order to fund long-term transformations. It is Kaufman’s belief that the primary source of income for the transformation is from cost-shifting. Companies that are successful implementing an ACO are ones that develop physicians, hospitals, and other care providers that are trained to provide highly effective and efficient care that is both of the highest quality and delivered at the lowest cost possible (Kaufman, 2011).
Employers are no longer providing the rich open network plans to their employees. Instead, many employer sponsored plans have smaller networks and the employee is responsible for paying more out-of-pocket expenses as the deductibles are now significantly high. Additionally, as the United States population ages into Medicare and Medicaid in many states is expanded, the opportunity for revenue for many healthcare organizations is shrinking. According to Kaufman (2011), with the diminished opportunity to shift costs, healthcare organizations need to maximize their ability to generate income now in order to fund long-term transformations. It is Kaufman’s belief that the primary source of income for the transformation is from cost-shifting. Companies that are successful implementing an ACO are ones that develop physicians, hospitals, and other care providers that are trained to provide highly effective and efficient care that is both of the highest quality and delivered at the lowest cost possible (Kaufman, 2011).