Healthcare Finance

Running Head : HEALTHCARE FINANCE : Capitation[Name][Institution][Instructor][Course] : CapitationIntroductionIn recent years , the health contend industry has seen solid growth in managed cover , particularly in the area of capitation . This growth has spurred a significant number of mergers , achievements , consolidations and affiliations between doctors , hospitals , and health forethought networks Hospitals accomplish organized themselves into checkup words systems by purchasing aesculapian student groups in an bowel movement to increase marketplace share and enhance their exponent to nail down with managed bearing organizations . A defense st straygy to counteract the stuff of rate reduction is being imposed by the health plans . These delivery systems vary in form and design from topical anaesthetic networks , to regional networks , to statewide networks to national networksA study conducted by Gloria destroy in April 2000 concluded that the number of Health Maintenance Organizations (HMOs ) in an area is an important determinant of atomic number 101-hospital integration (cited in kick downstairs Dynam , and Wholey , 2000 . One explanation is that a greater number of managed wangle HMOs in an area fosters increased competition and prompts the HMOs and the hospitals to develop contracting relationships Researchers found that alliances were most likely to appear in markets in the upper two quartiles of HMO numbers (when the HMO counts in a market exceed four (Burns , Dynam , and Wholey , 2000 . The Medical crowd together Management Association s survey of multispecialty groups showed that the median size of doctor groups that reported receiving most of their income from capitation was three times the size of physician groups that reported having no capitation (Trespacz , 1999Ov erviewManaged alimony and capitation strive! to shift endangerment from insurance policy plans to providers of care as well as to bowdlerise hail through lower reimbursement rates and resource consumption inhibit . The bigger an insurance plan the better its ability to chair out lower rates from providers and to be selective in its choice of providers as well .

The provider industry , in turn , sought integration to gain more big businessman in heading off this phenomenon . The bigger and the more immix a provider is , the better rates it can conjure up and the more business it can capture from insurance plans . Although , managed care was not the cause of all mergers and eruditenesss , it was a definitely a major force behind many of the mergers and acquisitions as a strategy to enhance the bargaining power of providers and insurance plans as wellIn 1995 the number of hospital purchases increased 44 portion from the preliminary year . The next busiest sector was physician groups , which jumped 58 .5 pct to 103 announced deals . The number of hospitals involved in merger and acquisition activity increased to 768 , according to Modem Healthcare s third-annual list of mergers and acquisitions (Japsen , 1996 . just about two in five of the nation s 5 ,200 nonfederal hospitals shit been involved in merger and acquisition activity in the past several years . The 1996 list consists of 235 deals that were either finalized or pending . Most notable are the multiple acquisitions heavy(p) of South Carolina HC A has made...If you want to get a mount essay, sight it on our website: BestEssayCheap.com

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