The Affordable Care Act Modern Management Theory

Modern Management Theory
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March 8, 2019
The Affordable Care Act, also known as Obamacare, was a law that aims to do three (3) things, namely (1) Make affordable health insurance to all people, (2) Expand the Medicaid Program, and (3) Support Innovative Medical Care and Innovative Methods (Healthcare.gov, n.d.). In other words, Obamacare has been created to expand the scope of the country’s medical aid program, while also lowering the costs of such to provide better healthcare for everyone. In line with some of the theories in the management of their organizations (contingency theory and strategic management theory), the implementation of Obamacare shows that just like any other organization, hospitals, and other healthcare facilities interact dynamically and continuously with external organizations. For example, Resource Dependence Theory “argues that organizations, as open systems, necessarily transact with other organizations in their environment to obtain the resources necessary for their survival” (Pfeffer, 2013). The said theory could be seen in healthcare organizations by recognizing the fact that healthcare fa...