Internal forces and trends considerations

The answer to this question outlines the key objective that will determine the success, or otherwise, of the event. This is the question that attendees, exhibitors and sponsors alike will ask themselves when evaluating attendance.

Internal forces and trends considerations

Current Trends in Hospital Mergers and Acquisitions Healthcare reform will result in more consolidation and integration among hospitals, reversing a recent trend in which hospitals tended to stay away from such transactions. Regardless of the ultimate fate of the Affordable Care Internal forces and trends considerations, healthcare reform is becoming a powerful catalyst for consolidation and integration in the hospital industry.

Healthcare reform will impact hospital consolidation in three key areas: Payment rates will decrease, indirectly encouraging consolidation by forcing hospitals to find new ways to reduce costs and increase negotiating clout with suppliers and payers.

The cost of doing business will increase as hospitals spend more on compliance, technology, and physician employment. The ACO model will encourage hospital network formation by rewarding integrated healthcare systems that can reduce costs and improve quality. We are seeing a significant number of mergers between hospital systems and cases of integration with physicians and other providers.

Consolidation activity has picked up considerably compared with the overall trend for the hospital industry in recent years. In the mids, the external threat of managed care had prompted many transactions.

The decline in transactions was dramatic, dropping to between 30 and 50 per year.

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The transactions that were occurring were largely due to microeconomic issues facing smaller hospitals and some larger systems usually loss of access to capital and the need to defend against competition.

Yet the number of hospitals affiliated with systems has been increasing. Inonly 2, of the hospitals in the United States were part of systems, whereas bythat number had increased to 2, Today, approximately 80 percent of the roughly 4, hospitals are operated by not-for-profit organizations and local governments, while for-profit companies operate about 20 percent of hospitals Fast Facts on US HospitalsAmerican Hospital Association, updated Jan.

Internal forces and trends considerations

For an industry representing 5 percent of U. The few companies involved in transactions, which average only between one and two hospitals per transaction, indicate a highly fragmented industry.

Among the top 10 companies in the hospital industry, each one accounts for only about 1 percent of the total market, and the largest accounts for only 4 percent of the market. With 80 percent of hospitals owned by not-for-profit organizations, hospitals have less access to capital than is enjoyed by leading companies in other industrie.

Federal healthcare reform, in part, seeks to bring this industry into the modern era. A pervasive notion exists that hospitals are part of the local economy and that consumers prefer local oversight and a high level of access to healthcare resources.

As the investor base of municipal securities shifts from retail to institutional holders, issuers will be held to a higher standard and required to float larger offerings.

Moreover, when politics rather than business needs drive decision making, local thinking thrives. Thus far, market forces have not been sufficient to force hospitals to consolidate. With the advent of healthcare reform and the decreasing availability of funding through the bond market, the hospital sector is slowly shifting to resemble most other major industries.

Healthcare reform seeks to increase preventive care, keeping patients out of the hospital and thereby decreasing inpatient revenues.

Healthcare reform also will decrease payment rates or at least slow their growthwhich will indirectly encourage consolidation by forcing hospitals to find new ways to reduce overhead and increase negotiating clout with suppliers and payers. The Affordable Care Act includes a value-based purchasing program, which rewards hospitals that exceed quality measures and penalizes underperformers with payment cuts.Even though mobile apps are nothing special anymore, there is still quite some movement in this area.

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In this article, Katie Stanfield highlights some of the trends we might encounter in the near. 2 NOTE FROM THE SECRETARIAT This paper was prepared by Prof.

Ken Button of School of George Mason University, USA, as a contribution to the OECD/ITF Global Forum on Transport and Environment in a Globalising World that will be held November in Guadalajara, Mexico. Philosophy of history is the philosophical study of history and the past.

The term was coined by Voltaire. Internal forces and trends considerations: Strategy Structures Processes and systems Resources Goals Strategic capabilities Culture Technologies Innovations Intellectual property Leadership BUS Week 3 Business Model and Strategic Plan Part II: SWOTT Analysis Paper.

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SWOTT Analysis for External and Internal Environmental Forces