Assume you are the chief executive officer (CEO) of a large technology-intensive hospital in a community of 200,000 people that includes two other smaller community hospitals and a wide range of physicians and other providers working in private practice. Currently, you are paid by Medicare—the federal insurance program for the elderly—for a fixed amount for every admission to your hospital and based on the severity of the patient’s needs. Physicians and other providers in your community are paid fee-for-service. The federal government has just made an offer to your community that it form an accountable care organization (ACO) that could accept a capitated annual payment for each person eligible for Medicare. Based off the scenario above, what if that your closes hospital competitor has accepted the government's offer, but you have chosen not to accept it. Do you think there would be any ramifications for your hospital system? Think about the technological, social, economic, regulatory, environmental, and political ramifications of your decision. Please explain.
Assume you are the chief executive officer (CEO) of a large technology-intensive hospital in a community of 200,000 people that includes two other smaller community hospitals and a wide range of physicians and other providers working in private practice. Currently, you are paid by Medicare—the federal insurance program for the elderly—for a fixed amount for every admission to your hospital and based on the severity of the patient’s needs. Physicians and other providers in your community are paid fee-for-service. The federal government has just made an offer to your community that it form an accountable care organization (ACO) that could accept a capitated annual payment for each person eligible for Medicare.
Based off the scenario above, what if that your closes hospital competitor has accepted the government's offer, but you have chosen not to accept it. Do you think there would be any ramifications for your hospital system? Think about the technological, social, economic, regulatory, environmental, and political ramifications of your decision. Please explain.
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