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Abc Insurance

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Submitted By yquin1520
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The first step that ABC Insurance Company should do is the conduction of some research in regards what Verde Greene Hospital wants them to do in order to get with their contract. ABC has always taken in consideration what employers wants and how to provide services for their costumers. They should analyze how much they will win or loose if they get the contract with the stipulations that Verde Greene Hospital has requested. If they agree they should consider an antitrust behavior and consider the two laws that controls those type of action:
1. The Sherman Act (1890)
“Section 1: Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations, is hereby declared to be illegal. (Stone, 2011)”
2. The Clayton Act (1914)
“Section 2: It shall be unlawful for any person engaged in commerce . . . to discriminate in price between different purchasers of commodities of like grade and quality . . . where the effect of such discrimination may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition (Stone, 2011).”

Is evident that Verde Greene Hospital as a condition to sign the contract imposed ABC to get exclusivity and be the only provider in cardiac and maternity services for the 14 counties that they served. Verde Greene Hospital is getting into the antitrust practice and monopolistic behavior and if they get involve and agree; hospitals, providers and insurers can sue them.

YOU DECIDE: MANAGE CARE PLAN ENROLLMENT

In the other hand Verde Greene Hospital should take into consideration how this behavior can affect their good reputation. This behavior will show that they only care about the business and not in the patient quality of care. If they both agree and close the contract after the 10 days, how they will manage the short staffing in both department? Are they able to manage the amount of patients with out causing any contradictory effects in the services? Are they will be able to keep the excellent services provided to this populations? They need to consider their staff, their reputation and how an antitrust behavior should affect their future.
Employers should express their concern and try to make them understand how their services will be affected. The Information Week explain how “the shortages will likely result in longer wait times in emergency rooms and to see primary care physicians, greater fragmentation of care, and potentially more medical errors, the survey indicated (Versel, 2011)”. How the nursing and other department will suffer and how this will cause a shortage in staffing and it will cause stress on them that at the end will affect the quality of care.
If the agreement is closed patients will have an impact in the services, access to care, cost and quality can be affected it. They should ask themselves; how this would affect my access to care? How the quality will be affecting it? It will be worth it to travel far and long distance in order to receive care versus the savings I received form the insurance? How my treatments will be affected if I have to change provider? These are some of the question that patients and ABC
YOU DECIDE: MANAGE CARE PLAN ENROLLMENT

should be answering. They will have a few options and as a patient they have the right to complaint with member services in ABC and agencies that protect their rights.
But who have to consider how this will affect their business, reputation with the community and their position in the market is ABC Insurance Company. They need to act in accordance of the law and talk to the Verde Greene Hospital staff and expose them how each side will be affected putting first the access, quality and cost of care with the patient in mind. Why to compromise and jeopardize patient’s health limiting their access to care?
If the hospital decide to continue with that posture ABC Insurance Company can sue due to restrain of services in order to trade.

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