Hospital Alliance Essay

1. What is hospital alliance? Alliances generally are lightly coupled arrangements among existing organizations that are intended to achieve some long-term strategic purpose not possible by any single organization. In healthcare, the term “alliance” is sometimes used to refer to the voluntary organizations that hospitals join primarily to achieve economies of scale in purchasing. To clarify, alliance among hospitals is a process where several hospitals have allied to share their services, with the goal of reducing costs. This type of alliance helps the hospitals to stay reasonable. The purpose of alliance in hospitals specifically, is to reach its joint strategic goals, reduce risks while increasing rewards and control resources.
2. What

The first advantage includes that some of the hospital alliances provide vehicles to increase physician engagement. Also, the alliance may also be able to negotiate with insurance companies regarding to its partners, but only if it is clinically combined. Moreover, hospital alliances are attractive because they usually build population health management competencies and have an expressive presence in the insurance market, while maintaining their freedom of the integral hospitals or systems. Furthermore, hospital alliance allows to share the risks between the participants. Finally, creating an alliance allows its participants to take advantage of the benefits of scale, which might include a centralized IT arrangement, additional reporting mechanisms, and growth of clinical care standards. On the other hand, the disadvantages of hospital alliances include the difficulties in transferring the ownership. Also, there is always the enticement to participate which means it is difficult to keep everyone moving in the same direction at all times. Additionally, sharing profits can be a worrying occasion if they did not define their share agreement. Moreover, there is controlling complexity, particularly with regards to joint negotiation with insurers. Finally, insubstantiality of the business is considered as a disadvantage in hospital