| Introduction | | | | given health practitioner has rather than their |
| The US health care system is characterized by | | | | history. This will go a long way in stimulating |
| numerous ills such as poor customer satisfaction, | | | | creativity, production and quality services. |
| low healthcare quality, increased prices and low | | | | Hospitals need not worry about expansion |
| coverage. These problems are only symptoms of | | | | programs because there would be adequate |
| the underlying problems in healthcare. As a result | | | | funding for such programs since expansion is |
| of the serious setbacks with health delivery | | | | synonymous with increased numbers of services. |
| models currently in operation, a systematic | | | | (Porter and Teisberg, 2006) |
| analysis is necessary to ensure that the root | | | | Impact of current environmental trends on each |
| cause of the problem is identified and the | | | | health care delivery model |
| necessary solutions given. (Porter and Teisberg, | | | | There are a wide range of environmental issues |
| 2006) | | | | currently affecting the health care systems. All |
| Definition of model trends in the US health care | | | | these factors influence health care differently |
| system | | | | depending on the model adopted. The issue of |
| Model trends in the US health care system are | | | | clinical outcome research is currently becoming an |
| the systems that facilitate clarification of one's | | | | important factor in most health care delivery |
| service lines. It is essential for any particular entity | | | | systems. The value based competition approach |
| to understand the nature of business or service | | | | encourages the infusion of clinical research with |
| line they are offering the public. Model trends are | | | | patient care. This is because the model is based |
| essential in the US health care system because | | | | on improvement of service quality. This is an |
| they determine the nature of customers that a | | | | aspect that can be achieved very well using clinical |
| health entity deals with. It also guides any given | | | | research. On the other hand, the soft regulatory |
| organization on client needs that ought to be | | | | approach may not necessarily favor incorporating |
| addressed. Lastly, model trends affect the nature | | | | patient care with research. This model encourages |
| of order within the business. Model trends | | | | separation of these two issues. |
| determine what health organizations think of the | | | | The second environmental issue is in relation to |
| kind of value they can create in the market. This | | | | geography. Geography is critical to any given |
| means that there should be an alignment of what | | | | business in the health sector because it allows an |
| the organization thinks of its business values and | | | | in-depth understanding of the market to be |
| what the actual values are. This would be a | | | | served. The second trend is incorporation of the |
| prerequisite to great performance. | | | | regional or national needs with health care |
| It should be noted that model trends in other lines | | | | services. This trend affects the value based |
| of business are quite straight forward. However, | | | | competition model. According to the model, health |
| the same cannot be said of health care delivery | | | | practitioners need to eliminate factors that make |
| models. This is because traditional approaches to | | | | them vulnerable to competitors. In this models, |
| health care have been either too narrow or broad. | | | | the issue of geography also facilitates partnerships |
| For instance, there are some groups that consider | | | | across geographical spheres. The same may be |
| themselves part of the hospital business while | | | | said of the soft regulatory approach. Some health |
| others consider themselves as part of the health | | | | needs are synonymous with certain geographical |
| care delivery business. The former group consists | | | | locations. Consequently, the nature of resources |
| of hospitals that compete with other hospitals; this | | | | availed or the type of regulation offered largely |
| model is horizontally integrated. The latter model | | | | depends on the location. The latter issues indicate |
| consists of mostly health policy experts who | | | | how geography will affect service provision in the |
| believe that health care delivery should be | | | | soft regulatory approach. (Robinson & |
| vertically integrated. Here, health insurance and | | | | Dratler, 2006) |
| health care delivery are considered as one and | | | | Description of an emerging contemporary trend in |
| the same thing. | | | | management in the US health care system |
| Additionally, some health entities may use models | | | | Health care organizations these days have started |
| based on the nature of their business specialty. | | | | focusing on specialty services. There is a move |
| For instance, those who specialize in nephrology | | | | from offering a range of services in a mediocre |
| define their business model along that line. Also, | | | | way to performance enhancement. Consequently, |
| this applies to hospitals; some hospitals may think | | | | management system have become less |
| of themselves as service line providers hence the | | | | centralized. The new trend is on empowering |
| divisions into surgery, urology and others. (Porter | | | | different health care functions to make |
| and Teisberg, 2006) | | | | independent decisions on their own. |
| 2 current trends in healthcare delivery models | | | | Health care systems are now incorporating the |
| Health care delivery models have moved away | | | | need to give different specialists the ability to |
| from direct intervention by the state, federal | | | | decide their own fate. |
| government and policy makers into competition | | | | Effect of the latter health care trend on the |
| based models. The first emerging trend to be | | | | health care organization leadership |
| analyzed in the essay is value-based competition. | | | | Leadership in health care has had to embrace the |
| This model of health care provision shifts away | | | | latter trend. In this regard, organizations have |
| from focusing on doctors, business functions or | | | | been forced to redefine their business offering |
| policy makers as the main subject in health care, | | | | especially in relation to patient requirements. This |
| instead, the model embraces the patient as the | | | | means that the overall services offered have |
| most critical entity. This is a holistic approach | | | | now become more specialized. Consequently, each |
| because it does not just focus on offering | | | | entity has to control its own functions. Many |
| patients a range of specialty services, instead it | | | | health organizations have reduced vertical |
| encompasses the best service for every service | | | | integration as decision making abilities are now |
| offered. In the value based competition model, | | | | common practice among the different health care |
| hospitals or practitioners need not dwell on | | | | functions. |
| perfecting just one aspect of health like surgery, | | | | Different hospitals and other heath care centers |
| but the emphasis is on the overall quality of health | | | | have adopted smaller strategies for individual |
| care in the system. This implies that practitioners | | | | practice units. This approach is quite different |
| should strive for quality in surgery, nursing, | | | | from the past approach that involved adopting a |
| radiology and any other service needed by a | | | | uniform organizational strategy for all parts of the |
| particular patient. For instance, if a patient is | | | | hospital. Consequently, the overall hospital |
| diagnosed properly, then they can undergo the | | | | administration is not the only body given the |
| right treatment (which may involve surgery) | | | | responsibility to determine organizational strategy. |
| thereafter, they need to receive good post | | | | Various practice units now have the mandate to |
| surgery care and follow. By enhancing the value | | | | perform the latter task. (Ginsburg, 2005) |
| of all the services required by a particular patient | | | | Additionally, hospitals have begun checking on their |
| then health care service delivery can be enhanced. | | | | performance through the following methods |
| The second trend in health care provision is a soft | | | | - Measurement of results |
| regulatory model by policy makers. Regulatory | | | | - Assessing patient attitudes |
| approaches are seen as the traditional approach | | | | - Assessing patient experiences |
| to health care delivery in the US. However, the | | | | - Assessment of health care delivery methods |
| new trend is on soft regulatory approaches. This | | | | - Assessment of patient characteristics |
| comes about as a result of the following issues; | | | | Health care systems have also had to change the |
| - High levels of the elderly in health care | | | | way they do business. For instance, their pricing |
| - Technological proliferation | | | | strategies have been radically transformed. Most |
| - Consumer awareness | | | | of them have now started offering single bills |
| - Emphasis on effective service provision | | | | related to each service offered rather than |
| - Etc | | | | offering a large package to cover all the health |
| All these issues have caused increasing concerns | | | | costs. This enhances accountability in those |
| about cost implications in health. Consequently, the | | | | respective business functions because each of |
| government and other policy makers have been | | | | them can see their returns directly. This is quite |
| forced to embrace a softer approach to health | | | | different from the latter approach which |
| care. The health care system today may not | | | | promoted almost zero accountability. The blanket |
| encourage direct government intervention. This | | | | charges offered would camouflage efforts made |
| means that a direct supply of health resources or | | | | by one business function. |
| health care providers may not necessarily be the | | | | Market services currently being offered in health |
| best approach to health care. Instead, policy | | | | institutions have changed as a result of this |
| makers have embraced a guiding role. The main | | | | emerging trend. Health organizations now market |
| advantage of this kind of approach is the fact | | | | themselves as businesses that offer very unique |
| that patients are given equal access to medical | | | | services to their clientele. Additionally some of |
| care without any form of isolation. Additionally, | | | | them prefer emphasis on the excellence of their |
| this model also encourages equity in funding. | | | | product package. This makes health organizations |
| Patients can gain access to health care regardless | | | | more competitive or market driven. (Tollen |
| of their financial dispositions. This system goes a | | | | & Enthoven, 2005) |
| long way in protecting fairness; a fact that is | | | | The last major effect of this emerging |
| seriously compromised in the latter approach of | | | | contemporary trend is greater growth of health |
| value based competition. (Porter and Teisberg, | | | | institutions. Due to decentralization, services have |
| 2006) | | | | improved and geographical expansion has been |
| How the transformation of healthcare influences | | | | enhanced. |
| each of the two health delivery models | | | | Conclusion |
| Health care in the US has changed from its latter | | | | The essay examines two health delivery models |
| days. Patients have now become more informed | | | | in the US health care system. The first is the |
| about their rights and what health care providers | | | | value based competition model. This model is |
| must offer them. Consequently, there is a need | | | | patient centered and focuses on provision of |
| for health care providers to embrace these | | | | quality services, it also leaves competition in the |
| changes. Health care delivery systems operating | | | | hands of the health practitioners rather than in the |
| under the soft regulatory model have been | | | | hands of the policy makers. The second model is |
| affected by this transformation because astute | | | | the soft regulatory approach. According to the |
| administration of services is expected. Patients | | | | model, policy makers still regulate the health care |
| from various backgrounds expect equity and | | | | system but they do so light handedly; they act as |
| transparency in health care given the fact that | | | | guides rather than controllers. |
| they are very informed. | | | | An emerging trend in the health care system that |
| Heath care transformation affects the value | | | | is likely to affect management systems is the |
| based competition model because patients can | | | | issue of decentralized decisions making. This has |
| now access all the health care options available to | | | | affected organizational structure and functions in a |
| them through information technology. This means | | | | number of ways. First, they have had to |
| that in order to enhance value, hospitals need to | | | | breakdown organizational strategy, billing systems |
| do more than what they did a decade ago. | | | | have been transformed and marketing functions |
| In the past, health care systems have been | | | | too. |
| funded using an ineffective method. Health care | | | | Reference: |
| systems would receive funds based on historical | | | | Porter, M. and Teisberg, E. (2006): Redefining |
| expenditures. Additionally, funding was done | | | | Health Care: Creating Value-Based Competition on |
| irrespective of the nature of the organization | | | | Results; Harvard Business School Press, 54-67 |
| itself. It was a blanket model that offered little if | | | | Ginsburg, P. (2005): Competition In Health Care: Its |
| any room for improvement of service delivery. | | | | Evolution Over The Past Decade, Health Affairs, |
| However, these days there is a move toward | | | | 24, 6, 1512-1522. |
| funding based on service offering. The value | | | | Tollen, A.. & Enthoven, C. (2005): Competition |
| based competition model and the soft regulatory | | | | In Health Care: It Takes Systems to Pursue |
| approach are likely to be affected by this trend | | | | Quality and Efficiency, retrieved from accessed |
| positively. This is because funding will be done on | | | | on 15th July 2008 |
| service basis; i.e. the nature of services that a | | | | Robinson, J. & Dratler, S. |