Healthcare Finance

Running Head : HEALTHCARE FINANCE : Capitation[Name][Institution][Instructor][Course] : CapitationIntroductionIn recent geezerhood , 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 engrave organized themselves into checkup lurch systems by purchasing medical checkup student groups in an bowel movement to increase market place share and enhance their exponent to nail down with managed portion out organizations . A defense st gaitgy to counteract the stuff of rate reduction is being imposed by the health plans . These delivery systems vary in form and design from topical anaestheti c(a) networks , to regional networks , to statewide networks to national networksA study conducted by Gloria destruct in April 2000 concluded that the number of Health Maintenance Organizations (HMOs ) in an area is an important determinant of doc-hospital integration (cited in persecute Dynam , and Wholey , 2000 . One explanation is that a greater number of managed administer HMOs in an area fosters increased competition and prompts the HMOs and the hospitals to develop signal detection 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 meeting Management Association s survey of multispecialty groups showed that the median size of atomic number 101 groups that reported receiving most of their income from capitation was three times the size of physician groups that reported having no capitation (Trespacz , 1999OverviewManaged safeguard and capitati! on strive to shift endangerment from restitution plans to providers of care as well as to bowdlerise hail through lower reimbursement rates and resource consumption realize . The bigger an insurance plan the better its ability to mastermind 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 exponent in heading off this phenomenon . The bigger and the more complex a provider is , the better rates it can extend and the more business it can capture from insurance plans . Although , managed care was not the cause of all mergers and encyclopedisms , 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 forward year . The next busiest sector was physician groups , which jumped 58 .5 percent 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 . around two in five of the nation s 5 ,200 nonfederal hospitals amaze 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 big(p) of South Carolina HC A has made...If you want to get a adequate essay, sight it on our website: BestEssayCheap.com

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