Healthcare Paper

In: Business and Management

Submitted By rodriguezdjoe
Words 1346
Pages 6
Title of Article

Davis, K. L. (2014, Sep 15). Hospital Mergers Can Lower Costs and Improve Medical Care; stand-alone hospitals have too few patients to thrive in the new era of population health management. Wall Street Journal Retrieved from


U.S Healthcare expenditures are too high - nearly $9000 per capita. With healthcare cost rising rapidly, a change to how we approach healthcare systems has to be reviewed. Dr. Davis, the writer of this article makes the point that as times have passed; due to the higher cost of care, a huge opportunity for hospital mergers to happen is needed in order to continue to improve and drive higher quality in care and more efficiency. Currently the fee for service model of healthcare is transforming into the population management model of healthcare. Most hospitals don't mitigate risk effectively, most not keenly aware of the population they serve as it changes, are not able to serve the populations. In some cases some hospitals do not offer a wide range of services to a large population and thus manage risk poorly and drive up post acute cost and are not able to manage patients who are high utilizers of care services. As these hospitals work and are currently dependent on using the current fee for service model, which incentivizes physicians to over utilize resources to treat illnesses, it does not support or help maintain patients in good health. Dr Davis encourages mergers of hospitals, and states that these mergers can essentially reduce unnecessary overlap in regional health care offerings, improve quality of care, and it help support community needs more effectively.
The Affordable Care Act also known as "Obama Care" has forced the issue and help drive more population based healthcare. What this means is that health systems, in…...

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