HEALTHCARE MARKETING STUDY
QUESTIONS WITH CORRECT SOLUTIONS
U.S. Hospitals
The number of U.S. hospitals have grown from 2,542 to now 3,144
-Independent hospitals are now the minority
Integrated Delivery System
network of hospitals that enables better use of staff and financial resources and promotes greater
operational efficiencies across the continuum of healthcare services. They also gain a
competitive advantage by negotiating better reimbursement rates with insurers
Hospital Acquisition
purchase of a hospital by another facility or multi hospital system
Not-for-profit health systems
-typically evaluate potential acquisitions on the basis of mission, outreach, services, and
geographic location
For Profit health systems
-evaluate opportunities to maximize profits, for example purchasing a hospital when its sale price
is below the net present value of its cash flow stream
Hospital merger
combining of two or more hospitals, often through a pooling of interests
,-hospital mergers tend to be horizontal, meaning the merging hospitals are competitors looking
for increased operating efficiency and improved market share
-reasons to merge are to eliminate unnecessary services, reduce over head through consolidation,
and provide more rational mix of services designed to better meet community's needs
Merger cont...
In a merger the mission, vision, and culture between the two organizations is important
-In an acquisition situation, organized fit is preferable, but similarity is not necessary because the
acquiring organization will have dominance, and the acquired entity's assets are transferred to the
purchasing entity
Vertical Integration
Result in IDSs designed to gain access to scarce resources across the continuum of care by
acquiring an organization that controls those resources
Mayo Clinic is an example of a large IDS
Not-for profit health system
is based on charitable purpose and frequently affiliated with a religious denomination, they are
tradtional means of delivering medical care in the U.S.
Geisinger Health System is a not for profit health system
, For- profit health system
organizations that comprise hospitals owned by equity investors and that have a well defined
organizational goal of profit maximization. As a result, the management team answers to
shareholders of the company
the largest for the profit health system in the U.S. is Hospital Corporation of America
genetics is the study of the function and effects of a single gene, but genomics is.....
the term for the study of the entire group
Health Systems
are attempting to lower costs by increasing their economies of scale
Virtual Health Systems
networks of organizations created through the use of health information technology-allow
independent healthcare providers to link together without having to merge with or acquire other
facilities
International Healthcare initiatives
U.S. health systems are participating in international healthcare initiatives as a way to expand
their market
Value Frontier
QUESTIONS WITH CORRECT SOLUTIONS
U.S. Hospitals
The number of U.S. hospitals have grown from 2,542 to now 3,144
-Independent hospitals are now the minority
Integrated Delivery System
network of hospitals that enables better use of staff and financial resources and promotes greater
operational efficiencies across the continuum of healthcare services. They also gain a
competitive advantage by negotiating better reimbursement rates with insurers
Hospital Acquisition
purchase of a hospital by another facility or multi hospital system
Not-for-profit health systems
-typically evaluate potential acquisitions on the basis of mission, outreach, services, and
geographic location
For Profit health systems
-evaluate opportunities to maximize profits, for example purchasing a hospital when its sale price
is below the net present value of its cash flow stream
Hospital merger
combining of two or more hospitals, often through a pooling of interests
,-hospital mergers tend to be horizontal, meaning the merging hospitals are competitors looking
for increased operating efficiency and improved market share
-reasons to merge are to eliminate unnecessary services, reduce over head through consolidation,
and provide more rational mix of services designed to better meet community's needs
Merger cont...
In a merger the mission, vision, and culture between the two organizations is important
-In an acquisition situation, organized fit is preferable, but similarity is not necessary because the
acquiring organization will have dominance, and the acquired entity's assets are transferred to the
purchasing entity
Vertical Integration
Result in IDSs designed to gain access to scarce resources across the continuum of care by
acquiring an organization that controls those resources
Mayo Clinic is an example of a large IDS
Not-for profit health system
is based on charitable purpose and frequently affiliated with a religious denomination, they are
tradtional means of delivering medical care in the U.S.
Geisinger Health System is a not for profit health system
, For- profit health system
organizations that comprise hospitals owned by equity investors and that have a well defined
organizational goal of profit maximization. As a result, the management team answers to
shareholders of the company
the largest for the profit health system in the U.S. is Hospital Corporation of America
genetics is the study of the function and effects of a single gene, but genomics is.....
the term for the study of the entire group
Health Systems
are attempting to lower costs by increasing their economies of scale
Virtual Health Systems
networks of organizations created through the use of health information technology-allow
independent healthcare providers to link together without having to merge with or acquire other
facilities
International Healthcare initiatives
U.S. health systems are participating in international healthcare initiatives as a way to expand
their market
Value Frontier
