Competition and business conditions in health care markets*****a++

Week 5: Competition and Business Conditions in Health Care Markets


Changes in health care financing and the business environment have spurred competition among health care organizations. Patients and health care consumers demand services from suppliers in local markets, and hospitals and providers compete for these patients, depending on their health insurance plans. These forces are leading to changes in existing health care organizational and market structures, including hospital ownership of physicians’ practices (e.g., vertical integration) and the formation of integrated delivery systems. As a health care administrator, you must understand implications of this competition and the often resulting organizational integration.

This week, as you explore competition and business conditions in health care markets, you compare advantages and disadvantages of vertical integration in health care organizational structures. You also recommend strategies for the organizational integration of hospitals and providers.

Week 5 Learning Resources

Required Resources

Note: To access this week’s required library resources, please click on the link to the Course Readings List, found in the Course Materials section of your Syllabus.


·         Getzen, T. (2015).Health economics for the healthcare administrator(Laureate custom edition). New York: Wiley.

·         Chapter 8, “Hospitals” (pp. 172–186)

·         Chapter 12, “Financing and Ownership of Health Care Providers” (pp. 259–287)


·         Colla, C. H., Lewis, V. A., Shortell, S. M., & Fisher, E. S. (2014). First national survey of ACOs finds that physicians are playing strong leadership and ownership roles.Health Affairs,33(6), 964–971.Retrieved from the Walden Library databases.


·         Cutler, D., & Scott Morton, F. (2013). Hospitals, market share, and consolidation.Journal of the American Medical Association, 310(18), 1964–1970.Retrieved from the Walden Library databases.


·         Fisher, E. S., Shortell, S. M., Kreindler, S. A., Van Citters, A. D., & Larson, B. K. (2012). A framework for evaluating the formation, implementation, and performance of accountable care organizations.Health Affairs,31(11), 2368–2378.Retrieved from the Walden Library databases.


·         Healthcare Financial Management Association. (2014a).An HFMA value project report: Acquisition and affiliation strategies. Westchester, IL: Author. Retrieved from HFMA Value Project Report: Acquisition and Affiliation Strategies by Healthcare Financial Management Association. Copyright 2014 by Healthcare Financial Management Association. Reprinted by permission of Healthcare Financial Management Association via the Copyright Clearance Center.

Week 5 Discussion


Health Care Organizational and Market Structures

Scenario: You are the chief financial officer (CFO) of a hospital located in a highly competitive, urban market split with two competing hospitals. The hospital is considering purchasing or affiliating with a large physicians’ practice. Your hospital has 30% market share, but does not currently have any owned/employed physicians. Private insurers and Medicare are aggressively pushing value-based reimbursement under ACO contracts, and the one competing hospital has already acquired a large physicians’ practice.In an industry as complex as health care, organizational and market structures must be carefully considered. To participate in accountable care organizations (ACOs) and other value-based care initiatives, for example, hospitals need to have a coordinated care organization model across ambulatory care, acute care, and other settings. Developing these coordinated relationships may require vertical integration to ensure efficient utilization. Although there are many advantages to this integration of organizational and market structures, there are some disadvantages for both the hospital and the providers. For this Discussion, examine the following scenario and recommend strategies for the organizational integration of the hospital and practice.

To prepare for this Discussion:

·         Analyze the provided scenario. What are the advantages and disadvantages of the vertical integration of the hospital and physicians’ practice? What economic factors should be considered?

·         Consider strategies for the organizational integration of the hospital and physicians’ practice. Be sure to address the economic factors you identified.

Note: This Discussion will be graded using this rubric: Document: Discussion Rubric (Word document)

Post by Day 3 a cohesive response to the following:

Compare advantages and disadvantages of the vertical integration of the hospital and physicians’ practice, including economic factors that should be considered. Then, recommend strategies for the organizational integration of the hospital and practice. Defend or argue your recommendations using economic principles.

Support your response by identifying and explaining key points and/or examples presented in the Learning Resources.

Read a selection of your colleagues’ postings. Consider how your colleagues’ postings relate to the information presented in the Learning Resources and to your own posting.

Respond by Day 5 to at least two of your colleagues’ postings and continue the Discussion through Day 7. Expand on this Discussion by providing additional insights or alternative perspectives.



Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more