Address the contemporary health care trends

Assignment Help Management Theories

Reference no: EM133420584

Question: Address the contemporary health care trends that they discussed. Offer an element of feedback with reasoning that supports their post and another element of feedback that offers additional insight. Please cite one source within the past 5 years. Source must be accessible, If I cant access it I cant give credit.

Health trend: Acquisitions and mergers

Horizontal and vertical mergers occur when hospitals, insurance corporations, and pharmaceutical sectors unite to improve service delivery quality. Insurers have recently joined physician groups, pharmacies, surgicenters, and hospitals in pursuing vertical integration. Cigna health insurers, for example, have suggested purchasing Express Scripts, the country's most well-known pharmaceutical benefit manager. Similarly, CVS, the second-largest pharmacy benefits manager, announced its intention to purchase Aetna, the third-largest health insurance company. DaVita Medical Group, which has over three hundred urgent care facilities and clinics, is expected to be acquired by UnitedHealth, a major health insurance with over two hundred surgical centers and two-hundred and fifty urgent care centers.

When a hospital is subjected to challenges such as vertical mergers, it is critical to strengthen price coordination, therefore lowering healthcare expenses, which may boost healthcare for many people. Second, there is a greater likelihood of improved care quality. Acquisitions and mergers, on the other hand, can have a detrimental influence on hospitals, including the formation of a monopolistic culture that may hinder customer service delivery. It refers to the assumption that there is only one identity accessible on the market; hence, the quality of service is only dependent on what such an organization can supply.

Reference no: EM133420584

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