D545 WGU Section 1 Key Terms: Understanding Strategic Alliances and Healthcare.
D545 WGU Section 1 Key Terms: Understanding Strategic Alliances and
Healthcare.
Section 1 – Key Terms
Lesson 1
strategic alliance: the establishment of a long-term relationship between two or
more organizations or groups that have developed mutually beneficial goals or
needs but do not relinquish their independent functions
horizontal alliance: a partnership between competing organizations that are
similar in that they provide the same products and services
vertical alliance: a partnership between an organization and its supplier(s),
wherein the organization and the supplier(s) operate in different industries
joint venture alliance: an alliance wherein the parties combine resources and
share ownership and a large percentage of control
pooled alliances: alliances that develop from many members who come
together to share resources that will bring value to the organizations; an
example is group purchasing organizations that save money for their members
by negotiating prices
network outsource alliance: an alliance that outsources or contracts out portions
of its operations
health care: an act or deed between the healthcare provider and the patient to
maintain or improve the patient's healthcare status
biomedical model: a theoretical framework in healthcare that views illness and
disease as primarily resulting from biological factors
holistic health: an approach to wellness that simultaneously addresses the
physical, mental, emotional, social, and spiritual components of health
holistic medicine: the practice of healthcare professionals using a diverse range
of disciplines, religious philosophies, and cultural practices to heal individuals,
communities, and the environment
accountable care organization (ACO): a network of doctors, hospitals, and other
®™ 1
,D545 WGU Section 1 Key Terms: Understanding Strategic Alliances and Healthcare.
healthcare providers that voluntarily come together to provide coordinated,
high-quality care to their patients
®™ 2
, D545 WGU Section 1 Key Terms: Understanding Strategic Alliances and Healthcare.
structure: how specific activities are performed to ensure the mission and vision
of the organization are achieved
functional organization structure: splits the organization into departments based
on the expertise of employees (also referred to as bureaucratic organizational
structure)
matrix organizational structure: a type of organizational design that combines
two or more types of organizational structures, typically functional and project-
based
financing: premiums established through negotiations between employers and
the MCO
insurance: a financial arrangement that protects against financial loss or liability,
typically by allowing individuals or entities to pool the risk of potential losses in
exchange for regular payments known as premiums
managed care organization (MCO): a type of healthcare delivery system that aims
to manage the cost, quality, and accessibility of healthcare services; MCOs are
commonly associated with HMOs, PPOs, and POS plans
delivery: the provision of healthcare services by various providers in exchange
for payment for services rendered
payment function: to determine fees for services, how much a provider should be
paid for services rendered, and the actual payment to the provider after
services have been rendered
health maintenance organization (HMO): a type of managed care organization
that provides health insurance coverage through a network of healthcare
providers who offer services to members for a fixed fee
preferred provider organization (PPO): a type of managed care organization that
provides health insurance coverage where members can receive care from both
in-network and out-of-network providers, with greater flexibility and higher
coverage for in-network services
integrated delivery system (IDS): a network of organizations that provides or
arranges to provide an organized variety of services to specific populations and
is held accountable for the outcomes and health status of those populations
®™ 3
D545 WGU Section 1 Key Terms: Understanding Strategic Alliances and
Healthcare.
Section 1 – Key Terms
Lesson 1
strategic alliance: the establishment of a long-term relationship between two or
more organizations or groups that have developed mutually beneficial goals or
needs but do not relinquish their independent functions
horizontal alliance: a partnership between competing organizations that are
similar in that they provide the same products and services
vertical alliance: a partnership between an organization and its supplier(s),
wherein the organization and the supplier(s) operate in different industries
joint venture alliance: an alliance wherein the parties combine resources and
share ownership and a large percentage of control
pooled alliances: alliances that develop from many members who come
together to share resources that will bring value to the organizations; an
example is group purchasing organizations that save money for their members
by negotiating prices
network outsource alliance: an alliance that outsources or contracts out portions
of its operations
health care: an act or deed between the healthcare provider and the patient to
maintain or improve the patient's healthcare status
biomedical model: a theoretical framework in healthcare that views illness and
disease as primarily resulting from biological factors
holistic health: an approach to wellness that simultaneously addresses the
physical, mental, emotional, social, and spiritual components of health
holistic medicine: the practice of healthcare professionals using a diverse range
of disciplines, religious philosophies, and cultural practices to heal individuals,
communities, and the environment
accountable care organization (ACO): a network of doctors, hospitals, and other
®™ 1
,D545 WGU Section 1 Key Terms: Understanding Strategic Alliances and Healthcare.
healthcare providers that voluntarily come together to provide coordinated,
high-quality care to their patients
®™ 2
, D545 WGU Section 1 Key Terms: Understanding Strategic Alliances and Healthcare.
structure: how specific activities are performed to ensure the mission and vision
of the organization are achieved
functional organization structure: splits the organization into departments based
on the expertise of employees (also referred to as bureaucratic organizational
structure)
matrix organizational structure: a type of organizational design that combines
two or more types of organizational structures, typically functional and project-
based
financing: premiums established through negotiations between employers and
the MCO
insurance: a financial arrangement that protects against financial loss or liability,
typically by allowing individuals or entities to pool the risk of potential losses in
exchange for regular payments known as premiums
managed care organization (MCO): a type of healthcare delivery system that aims
to manage the cost, quality, and accessibility of healthcare services; MCOs are
commonly associated with HMOs, PPOs, and POS plans
delivery: the provision of healthcare services by various providers in exchange
for payment for services rendered
payment function: to determine fees for services, how much a provider should be
paid for services rendered, and the actual payment to the provider after
services have been rendered
health maintenance organization (HMO): a type of managed care organization
that provides health insurance coverage through a network of healthcare
providers who offer services to members for a fixed fee
preferred provider organization (PPO): a type of managed care organization that
provides health insurance coverage where members can receive care from both
in-network and out-of-network providers, with greater flexibility and higher
coverage for in-network services
integrated delivery system (IDS): a network of organizations that provides or
arranges to provide an organized variety of services to specific populations and
is held accountable for the outcomes and health status of those populations
®™ 3
