Future Practices Of Health Insurance and Managed Care

Topic: Impact Of The Patient Protection and Affordable Care Act (ACA) On Current and Future Practices Of Health Insurance and Managed Care
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Introduction
Enacted into law on 23rd of March, 2010, the Patient Protection and Affordable Care Act (ACA), is the most extensive healthcare reform legislature in the United States (US) ever since the conception of Medicare and Medicaid in 1965 (Lathrop & Hodnicki, 2014). The ACA institutes a new course for the U.S. healthcare model that includes an emphasis on preventive services and basic care. It offers insurance policies to millions of people who are currently uninsured and tries to address areas of the existing healthcare system that require improvement so that populations requirements for safe care and better health results are met (Lathrop & Hodnicki, 2014). According to The New York Times, around 48 million of America population were living without health insurance by year 2012. That figure constituted a 15.4 percent of the country’s population. The ACA purposes to give insurance to these Americans –however, the question that lingers is what does this mean for healthcare benefactors? The ACA is aimed to transform health care by encompassing coverage to the uninsured, while evaluating the patient experience, pulling down health care costs, and creating improved health outcomes (Wilson, 2014).To manage fair costs and improve the quality of healthcare, the ACA alters the way hospitals together with other health care providers are compensated for services, while holding them to new practice standards. It upholds models such as Patient-Centered Medical and Homes Accountable Care Organizations, to help in harmonizing care for an individual patient across the many settings (Wilson, 2014). In this paper, focus will be on some of the numerous changes that hospitals will undergo as a result of the ACA. Mutual themes in all of these transformations are quality, efficiency, and accountability– three of the foundations that are driving healthcare reform efforts
The Effects on Health Care Delivery in Hospitals
As a consequence; increased governing burdens, have led to health care stakeholders shifting industry practices. In order to ensure viability in the new marketplace, strategic planning and a vision of the future has become very necessary. A reassessment of the current market position, labor costs, and infrastructure is necessary to ensuring solvency as the ACA takes effect.
Mega Health Care
Besides individual physicians, group practices, and other healthcare businesses, hospitals are now merging and consolidating in order to remain relevant and strong in the industry. Mergers and acquisitions help in spreading out of the fiscal risk and increasing market share while minimizing overhead costs for billing and dues. This provides a better negotiating command with insurers, physicians, government entities, and other hospitals (Syre, 2011). Research shows that about 60 % of hospitals in the US are now in a system. In 2011, there was a both vertical and horizontal acquisition that included 432 mergers and involved 832 hospitals (Morton, 2013). For example, in Massachusetts, firms show reduced costs operation but in...