Competition and slowed enrollment hurt managed care companies--study.
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In an environment of limited resources and increased risk and competition, financial managers must determine which new technologies will have the most benefit for a healthcare organization's long-term interests. Adapting a 12-step business planning approach to the evaluation process for new technologies offers organizations a comprehensive method that ensures accountability, confidence, and support for the acquisition.
Strategies for success in the health-care marketplace are similar to those used on the battlefield. The following article applies the teachings of Niccolo Machiavelli, Karl von Clausewitz, Napolean Bonaparte and other classic military strategists to power management, marketing and competition in health-care organizational management.
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There is no question that the past few years have seen a tremendous surge in interest in what has come to be known as complementary and alternative medicine (CAM). Health plans contemplating adding CAM benefits face a daunting challenge. How should a plan define CAM benefits? How should a plan define appropriate CAM providers? How can these benefits be managed? Will the addition of CAM benefits undermine coverage policies for conventional biomedicine? The answer to these questions lies largely in uncharted waters, as even CAM advocates will agree that many alternative therapies (even those like Oriental medicine which has been in practice for some 5,000 years) have not yet undergone the type of rigorous, evidence-based analysis that is required to validate conventional biomedicine. This article explores options for CAM benefit design by considering two basic approaches-creating an uninsured benefit or insured benefit.
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The general perception that the use of information technology (IT) in health care is ten to fifteen years behind IT in other industrial sectors such as banking, manufacturing, and airline is rapidly changing. Health care providers, faced with an unprecedented era of competition and managed care, are now exploring the opportunities for using IT to improve the quality while simultaneously reducing the cost of health care. A revolution is taking place in the health care industry, with IT playing an increasingly important role in its delivery. In recent years, for example, the industry spent approximately $12 billion to $14 billion a year on IT. Further exponential growth is expected as the health care industry implements electronic medical records, upgrades hospital information systems, sets up intranets for sharing information among key stakeholders, and uses public networks, such as the Internet, for distributing health-related information and for providing remote diagnostics. Along with these drastic changes and the new approach to health care, the field of health/medical informatics and telematics has also experienced significant growth in the last few years. This article identifies and surveys the critical information technologies that are being adopted to provide strategic benefits to the various health care constituencies including hospitals and health maintenance organizations (HMOs).
During the past several years, one of the favored areas for legislative (and editorial) debate in our Nation has been the proper level of legal protections that should be accorded to those individuals who have chosen to become members of managed care plans. As examined in the following article, this debate often rages with little notice being paid to the underlying conflicts between managed care and "patient's rights." Indeed, at times, the vociferousness of the debate obscures even those instances in which there is little fundamental conflict.
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Hospital capacity has declined in recent years and is forecast to decline further. The objective of this study is to determine if hospital capacity has declined more rapidly in metropolitan statistical areas (MSAs) with high HMO market penetration compared with MSAs with low HMO market penetration in the period from 1982 to 1996. The findings presented in this study are that greater reductions in beds per capita occur in MSAs with greater HMO penetration, but the magnitude of the differences is small. Reductions in other measures of hospital capacity--hospital closures, beds per hospital, and occupancy--are not consistently associated with HMO market penetration. Bed capacity occurs at roughly similar rates in all MSAs.
Although in many parts of the country the trend is for hospitals to merge, consolidate, or even shut down due to financial constraints and increased competition from managed care, in other areas new hospitals are being built--and with more advanced security systems for protecting patients, visitors, and staff. In this report, we'll give details on the security planning involved in the building of four new facilities, ranging in size from 56 to 400 beds, each in a different region of the country.