Consolidation In Healthcare

Changing the Health care system is hard to do due to the fact that it is very slow to change. Burns, Bradley, and Weiner (2012) states that there are a few issues that make it hard for them to change. The first one is the ferderal government, the government is the biggest payer by reimbursing health care through set prices. Second is consumerism, which can be found as consumer direscted health plans (CDHPs) and health savings accounts (HSAs), medicine offered by physicians to avoid organizations like managed care, person health records, healthcare financial services, and employer wellness programs (Burns, Bradley, and Weiner, 2012). Third, the health care delivery which is controlled by the medical profession that controls up to 85 percent of spending.

Fourth, Consolidation has changed a lot throughout the healthcare economy by reducing competition, market power, and raising prices. Consolidation consists of wholesalers, organizations, insurance, and large hospital systems (Burns, Bradley, and Weiner, 2012). Fifth, the delivery of healthcare which is mostly dominated by non profit organizations. they also have a slow rate of change in the non profit sector of the hospital which accounts for about 15-20 percent (Burns, Bradley, and Weiner, 2012). One way to confront the need for stornger managers in the healthcare field is to address the issues. Applying organizational theory into the system will be very beneficial and