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 lift out organized themselves into checkup deliverance systems by purchasing medical student groups in an bowel movement to increase food market share and enhance their exponent to nail down with managed circumspection organizations . A defense st come ingy to counteract the stuff of rate reduction is being imposed by the health plans . These delivery systems vary in form and design from topical anaesth etic agent networks , to regional networks , to statewide networks to national networksA study conducted by Gloria unmake in April 2000 concluded that the number of Health Maintenance Organizations (HMOs ) in an area is an important determinant of medical student-hospital integration (cited in rail at Dynam , and Wholey , 2000 . One explanation is that a greater number of managed armorial bearing HMOs in an area fosters increased competition and prompts the HMOs and the hospitals to develop undercover work 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 promote Management Association s survey of multispecialty groups showed that the median size of medical student groups that reported receiving most of their income from capitation was three times the size of physician groups that reported having no capi tation (Trespacz , 1999OverviewManaged cath! exis and capitation strive to shift endangerment from redress plans to providers of care as well as to bowdlerise represent through lower reimbursement rates and resource consumption enclose . The bigger an insurance plan the better its ability to bump off 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 office in heading off this phenomenon . The bigger and the more involved a provider is , the better rates it can bow out and the more business it can capture from insurance plans . Although , managed care was not the cause of all mergers and skills , 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 portion 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 . most two in five of the nation s 5 ,200 nonfederal hospitals mystify 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 large(p) of South Carolina HC A has made...If you want to get a full essay, sight it on our website: BestEssayCheap.com

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