Managing Costs and Efficiency in the Healthcare Organization
Managing Costs and Efficiency in the Healthcare Organization
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A large manufacturing firm in your area closes its doors,
resulting in an increase in unemployment. You manage a multi-physician primary
care practice. About half of your patients are covered by public programs such
as Medicare and Medicaid. The other half is covered by their employersâ??
health insurance plan. What effect would you expect the closure to have on:
your volume of business
your revenue per visit
your costs
In discussing this, be sure to consider the balance of
maintaining a profitable business for your physician-owners with the medical
needs of the patients.
(2)
It is often claimed that hospitals compete for physicians
rather than patients. Assuming this is true, how does it occur and what are the
implications in terms of service availability, costs, and market power of the
providers and the health insurers? On the other hand, have you seen any
evidence to contradict this, even partially?
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