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ACO, HMO, PPO and Strategic Plans

by | Mar 26

The Author wrote: Strategic managementplays a valuable role in healthcare organizations in that the strategic management processis somewhat of a businesstool, a tool that helps health care leaders and managers understand how to build and/or maintain solid operations, maintain and/or build financial stability, build and/or maintain a strong position in a very competitive industry, and conducting this strategic process through our current health care reform.

Accountable Care Organizations (ACOs) are groups of doctors, hospitals, and other health care providers, whocome together voluntarily to give coordinated high quality care to their Medicare patients.

The goal of coordinated care is to ensure that patients, especially the chronically ill, get the right care at the right time, while avoiding unnecessary duplication of services and preventing medicalerrors.

When an ACO succeeds both in both delivering high-quality care and spending health care dollars more wisely, it will share in the savings it achieves for the Medicare program.

My question is …Would ACO fall under “triggering events” that will require a change in strategy? Why?

Any change in the dominant paradigm under which an organization or industry conducts their business operations should cause the strategic plan to be revisited. The strategic plan must allow a timely and nimble response to internal and external factors that alter the environment in which the organization operates. As an example, with a practice based upon a capitation plan …

A brief overview of why a medical provider should revisit their business strategy when change to a different reimbursement plan.



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