20 Mar Strategy Healthcare
Provide a simple one-page answer to the question. You willbe graded on the quality(correctness and effectiveness) of your answer.
Considera metropolitan hospital market that is dominated three systems (i.e. thesefirms satisfy more than 80 percent of demand in the market). System A hasfacilities located throughout the entire market and enjoys approximately a 30percent market share. System B has facilities in the city and northern suburbs,while the System C has facilities in the city and the western suburbs. Themarket has a number of large employers and employees live in the center cityas well as both the Northern and Western suburbs. On average, employees livingin the suburbs commute 30-45 minutes into the city, and it is hard to drivebetween the suburbs quickly.
This market has two dominantinsurers and a few smaller insurance plans that earn little profits. Inaddition, System B recently began offering a provider sponsored insurance planwhere they are both the insurer and the healthcare provider. As part of thisinsurance plan, System B offers value based care where patients are required toreceive all healthcare within the system and practitioners focus on providinglower cost care. Despite successfully achieving a lower cost basis for thepatients in the provider sponsored plan compared to patients covered dominantinsurer, to date most of the enrollees for that plan come from MedicareAdvantage. Despite extensive marketingefforts. System B has been largely unsuccessful selling this plan to employersin the market.
System B proposes to purchaseSystem C and integrate its facilities into its provider sponsored insuranceplan. After reviewing clinical practices at System C, the managmement of SystemB believes the assets of this system are well suited to the practice style oftheir value-based insurance plan.
Question: Do you believe SystemBs acquisition of System C will ultimately increase its profits? Who will be the primary beneficiaries of thismerger? How exactly will those partiesbenefit? Would you approve this merger?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.