Strategic Healthcare Management

2 types of concentration ratios - answer-4-firm -- measure market share of top 4 firms 8-firm -- measure market share of top 8 firms 2 types of regulations and examples - answer-1. Regulation by state government (drivers license requirements 2. Regulation by federal government (federal taxes) 3. Controls by non-government agencies (the joint commission) 3 examples of hc laws and dates - answer-medicare/medicaid (1965) Chip (1997) Aca (2010) 4 characteristics of a perfect market - answer-1. Homogenous market 2. Large number of buyers and sellers 3. Buyers and sellers enter/exit market freely 4. Symmetric information 4 elements of healthcare providers' bargaining power - answer-1. Shortage of hc providers 2. Consolidation of hc providers 3. Operational changes in delivering care 4. Going on strike According to us cbo, unauthorized immigrants account for what percentage of 30 million uninsured people in the us - answer-25% Ambulatory care - answer-health care settings where patients walk in and walk out Ambulatory health care services includes... - answer-doctors offices, clinics, other outpatient services Assess - answer-what is the impact of opportunity and threat? Asset specificity - answer-one or more attributes of an asset that make it particularly useful for a given purpose, not easily used in other situations (ex: mri machine v. Chair) Blue ocean strategy - answer-an approach where firms seek to create and compete in uncontested "blue ocean" market spaces, rather than competing in spaces and ways that have attracted many, similar rivals. Bundled payment (episode of care payment) - answer-a flat-fee for specific episodes of care that promotes efficiency in the provision of care Business - answer-part of a firm that produces a specific product Capitation model - answer-per member per month is fixed and pre-arranged, incentive to help patients avoid high-cost procedures and tests Characteristics of strategic management - answer-long-term goals, objectives, resource-allocation, contingency-planning Command hierarchy - answer-came about with the production system Competition among hospitals - answer-1. Doesn't exist when patient needs acute care -- they go to nearest hospital 2. Greater levels of competition for elective surgery Components of environmental analysis - answer-1. External analysis 2. Internal analysis 3. Swot analysis Components of external environment - answer-1. General environment (pest) 2. Industry environment (porter's 5 forces, strategic groups) Components of internal environment - answer-1. Organizational resources 2. Organizational culture 3. Organizational structure Concentrated market - answer-a market containing very few firms, in the extreme only one firm Concentration ratio - answer-how you measure the concentration of an industry Corporate buyers in healthcare examples - answer-large hospitals, insurers, hospital networks, gpos Cross elasticity of demand - answer-when changes in the price of one product affect the demand for complementary items Delivery of care shift - answer-general practitioner to teams/networks of hc professionals Demographic factors of hc - answer-age Gender Racial and ethnic composition Describe differences b/w industry, business, and firm using microsoft - answer-microsoft (firm) is involved data storage and word processing (industries) b/c they have microsoft and cloud products (businesses) Did the fda ever monitor medical devices? - answer-yes, so medical devices needed a definition to differentiate it from drugs so that the fda couldn't control it Dimensions of environmental change - answer-1. Rate of change 2. Complexity of environment 3. Interaction b/w factors 4. Uncertainty of environment caused by complexity Do generic drugs undergo same clinical approval process? - answer-no, they only have to demonstrate the same therapeutic benefits Does medicare cover compound drugs? - answer-no Downstream - answer-towards consumer Drivers giving rise to hc management - answer-1. Problems with access, cost, quality 2. Shift from 1-1 patient care to team/network patient care 3. Increase in specialization 4. Social demands on hc (right v. Privilege) 5. Growth of the hc industry 6. Growth in us population 7. Aging population 8. Chronic disease prevalence 9. Advances in medical technology requiring expertise in different areas 10. Health insurance reform Duration of care shift - answer-episodic care to extended care