Investigate at least two value-added services that Caring Angel Hospital could offer to strengthen its value proposition. Provide at least two examples of the advantages of these value-added services to the hospital.
These modules display that competition is competent of raising value for consumer's period of time. Quality and procedure advancement lead to lower prices, which in turn end results in improving consumer satisfaction. This paper also assesses significant data on the influence of rivalry, especially in regards to system prices, quality of care, and patient happiness; shows and investigates an assessment standard of competition and patient satisfactory in health care with propositions for practical research; and provides outlines for future fact-finding and
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The next component is consists of the industry that supply health care services, for example, e.g. hospitals, hospital systems, or additional medical services industries. Hospitals contest for doctors, third-party payers, and patients at once (Harris and McDaniel, 1993). In the beginning, hospitals battle for physicians by giving more highly qualified supportive workers or better devices. Therefore, existing trends determine that hospitals are more inclined to fight for patients by presenting additional services, better facilities or discounted costs (Fuch, 1988). Under this expectation, competition within health insurance could be simply indicated to factors such as admission, costs, benefit, and quality. Therefore, because programs general involve different measures of freedom in doctor's choice or benefit and coverage services, this gives the comparison between plans very difficult, if not hopeless for patients. To better comprehend the makeup of competition in health care,
In this case, the reader learns that liquidity is a better than average. The ratio and cash on hand have been better than 2013 from the past years. Moreover, it shows that the hospital has a higher ability to meet its cash obligation because it has more security compared to other hospitals. Funding allows hospitals to control funds and limit investments. Not-for-profit organizations help provide more services and margin of safety. Therefore, creditors look for a margin of safety so that the community that financed a small portion of total financing can be returned to the owners by leveraging. Capitalization ratio measures the funds that were borrowed and the assets that have been used. The coverage ratio measures the number that time they fixed financial charges. The time's interest earned ratio shows the ability of the hospital to meet
General Practices Affiliates is considering an offer from Titus Lake Hospital to join under a provider leasing model. Under a provider leasing model, Titus Lake Hospital is purchasing General Practices Affiliates’ services. The practice will retain control of personnel, management, and practice policies. Titus Lake Hospital submitted financial reports to assure transparency during the lease agreement process. The following analysis will discuss whether Titus Lake hospital is a viable financial partner for General Practice Affiliates, possible implications of the lease, and recommendations.
Pay-for-performance (P4P) is the compensation representation that compensates healthcare contributors for accomplishing pre-authorized objectives for the delivery of quality health care assistance by economic incentives. P4P is increasingly put into practice in the healthcare structure to support quality enhancements in healthcare systems. Thus, pay-for-performance can be seen as a means of attaching financial incentives to the main objectives of clinical care. However, reimbursement is a managed care payment by a third party to a beneficiary, hospital or other health care providers for services rendered to an insured or beneficiary. This paper discusses how reimbursement can be affected by the pay-for-performance approach and how system cost reductions impact the quality and efficiency of healthcare. In addition, it also addresses how pay-for-performance affects different healthcare providers and their customers. Finally, there will also be a discussion on the effects pay-for-performance will have on the future of healthcare.
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...
Davidson, Stephen M. Still Broken: Understanding the U.S. Health Care System. Stanford, CA: Stanford Business, 2010. Print.
When one examines managed health care and the hospitals that provide the care, a degree of variation is found in the treatment and care of their patients. This variation can be between hospitals or even between physicians within a health care network. For managed care companies the variation may be beneficial. This may provide them with opportunities to save money when it comes to paying for their policy holder’s care, however this large variation may also be detrimental to the insurance company. This would fall into the category of management of utilization, if hospitals and managed care organizations can control treatment utilization, they can control premium costs for both themselves and their customers (Rodwin 1996). If health care organizations can implement prevention as a way to warrant good health with their consumers, insurance companies can also illuminate unnecessary health care. These are just a few examples of how the health care industry can help benefit their patients, but that does not mean every issue involving physician over utilization or quality of care is erased because there is a management mechanism set in place.
Consulting for the Caring Angel Hospital Working in the health care industry takes a lot of courage and patience in order to deal with different individual’s personalities and to be equipped to handle stressful situations according to the issues at hand. As a senior consultant at the Practical Health Care Consulting firm, my supervisor has instructed me to spend three months at the Caring Angel Hospital. While at the hospital there are a few tasks for improving the quality of care, adding value to the organization, improving employee morale, etc. Although these obstacles will be a challenge, there is an opportunity for improvement. This will allow the Caring Angel Hospital to increase revenue and accomplish the goals that are established.
This paper will propose the major steps that Caring Angel Hospital (CAH) could take to achieve each of the following goals: Improve the quality of care, add value to the organization, improve employee morale, design an efficient organizational chart, create a strong team environment and create the hospital’s competitive edge. It will also recommend one approach that the hospital could use for acquiring a larger market share given the prevailing financial circumstances. It will investigate two value-added services that CAH could offer to strengthen its value proposition and examples of the advantages of those services.
6. The special characteristics of the U.S. health care market are Ethical and equity considerations, asymmetric information, spillover benefits, and third-party payments: insurance. Each one of these characteristics affects health care in some way. For example, ethical and equity considerations affect health care in the way that society does not consider unjust for people to be denied to health care access. Society believes that it is the same thing as not owning a car or a computer. Asymmetric information also gives health care a boost in prices. People who buy health care have no information on what procedures and diagnostics are involved, but on the other hand sellers do. This creates an unusual situation in which the doctor (seller) tells the patient(buyer) what services he or she should consume. It seems like the patient has to buy what the doctor tells him. The topic of spillover benefits also cause a rise in prices. This meaning that immunizations for diseases benefit not only the person who buys it but the whole community as well. It reduces the risk of the whole population getting infected. And the last characteristic is third-party insurance. Which involves all the insurance money people have to pay. This causes a distortion which results in excess consumption of health care services.
The Iron Triangle of Health Care is a concept developed by William Kissick, the father of Medicare, in his 1994 book, “Medicine’s Dilemmas: Infinite Needs Versus Finite Resources”. In his book Kissick describes three health care issues which are the primary concerns of all health care systems and that operate in a dynamic and complex relationship: Cost, Quality, and Access. The Triangle is Iron because it is generally difficult to have a low-cost, high quality, wide access health care system, Kissick (1994). Within the triangle it is generally assumed that if quality increases, then costs must increase as well, Kissick (1994). In this paper I will discuss this triangle and the relationship of the three aspects. Also I will discuss how each one dramatically
To further understand the US healthcare system and put in context how health coverage is provided to its population it is important to compare the US health system to another country like the Netherlands. In the Netherlands healthcare coverage has been achieved through competitive insurance markets similar to the US and the Dutch government does not control prices, productive capacity or funds but instead only acts as a regulator (Daley & Gubb, 2011). In 2006 the Dutch government held healthcare reforms because the country faced an issue that was very similar to the US, in regards to healthcare coverage inequalities, the population was covered through private and public health insurance, with stable private health insurance for the wealthy and unstable public insurance which lacked patient focus and was inefficient in comparison (Daley & Gubb, 2011). Many factors called for healthcare reformation in the Netherlands like a disarranged structure that ineffectively controlled cream skimming, lack of competitive incentives that for insurance companies resulting in bad performance, and the rising premiums
Market economics, especially in healthcare has advantages and disadvantages. For example, market economies are based on the concept that people are free to make their own choices about what services or products to purchase within the healthcare industry. This system can be efficient because a capitalist market system aims to produce goods with a minimum of wasted resources (Metcalf, 2012). Then on the downside a market economy will produce what people want, not necessarily what they need, which can raise prices for the average consumer/patient. For instance, the more consolidated a healthcare system is the greater the drawbacks. In other words, higher healthcare prices resulting from greater market power. “Market power increases because it is difficult for insurers to bargain successfully with one of only a few health systems and clinicians gain market power through consolidation by raising prices to the payers” (Cutler & Morton, 2013). Therefore, there are many decisions healthcare facilities need to consider before opening up to the public such as looking for a less concentrated area, identifying new sources of patients for referrals, offering something unique to differentiate from other providers, and creating a healthcare market that has not been built
Ever since the Affordable Care Act went into effect, the healthcare industry has experienced an increase in hospital mergers throughout the country. Even though Affordable Care Act has made it easier for many Americans to have access to preventing medicine and despite many efforts, the system remains in a complete state of disarray. Patient care has not improved in the industry. Nevertheless, hospital administrators argue that mergers are going to benefit their patients by reducing cost, provide better services and help them to achieve their desired outcome with the minimum use of resources and efforts. On the other hand, experts believe that hospital mergers will influence the healthcare market by causing medical costs to inflate.
The United States health care system is one of the most expensive systems in the world yet it is known as being unorganized and chaotic in comparison to other countries (Barton, 2010). This factor is attributed to numerous characteristics that define what the U.S. system is comprised of. Two of the major indications are imperfect market conditions and the demand for new technology (Barton, 2010). The health care system has been described as a free market in
Madrian, B. C. (2006, January ). THE U.S. HEALTH CARE SYSTEM AND LABOR MARKETS. Cambridge, MA: NATIONAL BUREAU OF ECONOMIC RESEARCH.