Premium Essay

Week 5 Case Study: Investment Potential in the Healthcare

In: Business and Management

Submitted By cbea1979
Words 1159
Pages 5
Week 5 Case Study
HSM 544
Healthcare Industry
The American health care industry is one of the nation's largest and most profitable industries (Healthcare, 2011). The American healthcare industry "has consistently increased its share of GDP from only 7.2% in 1970 to more than 16.0% in 2008" and that figure is still growing (Van Horn, 2010). It is also one of the few American industries that is expected to grow in the next few decades. In fact, the healthcare industry in America is expected to generate 3.2 million new jobs through the year 2018, which is more than any other American industry (Healthcare, 2011). This industry includes everything "from small-town private practices of physicians who employ only one medical assistant to busy inner-city hospitals that provide thousands of diverse jobs" (Healthcare, 2011). It includes things such as doctors' offices, phlebotomy laboratories, research laboratories, outpatient care centers, nursing homes, residential care facilities, clinics of all sizes, and large hospitals (Healthcare, 2011). It is not only a large industry, but a very broad one with many potential investment opportunities and many potential risks.
Government and Healthcare
The role of government in the healthcare industry is a topic that leads to very active and divisive debate. People are either of greater government involvement or deeply opposed to any government involvement. Currently, healthcare remains an industry with a high degree of regulation, in terms of state and federal law as well as in payment terms, but it is also an industry where private ownership and private arrangements for obtaining and paying for care are significant. "Federal and state governments ... together ... account for 46 percent of national health care expenditures; nearly three-quarters of this is attributable to Medicare and Medicaid" (Morrisey, 2008). The remaining 49%…...

Similar Documents

Free Essay

Healthcare Policy 2010

...| Implications of Regulation in Health Care | Week 5 Application | | Tiffany Littlejohn | 2/9/2014 | | Implications of Regulation in Health Care In today’s highly competitive regulated healthcare environment, it is so important for different companies to bring to their market new medical technology and to keep them in their market. Therefore, managing different regulatory issues is an essential key to a strategic advantage. Currently, there are strong standards and guidelines put into place to ensure that all devices are well safety equipped, well studied before putting it out in the market and have less negative reactions. The strongest way to judge efficacy of any technology is data acquisition through randomized clinical trials (Berkowitz, Robert, 2010). Off course, this is not possible or even feasible in certain cases. Properly designed case series and cohort studies can provide and prove hypothesis. Observational and epidemiological studies can help identify unexpected deviations and outcomes. Meta-analysis can then take in to consideration all the available evidence and summarize the current state of knowledge. Incorporation of Cost-Effectiveness Analysis and Cost-Benefit Analysis help calculate and extrapolate economic aspects of any medical technology. Technology continues to affect the healthcare industry (Berkowitz, Robert, 2010). Currently, the industry is moving towards the electronic medical record (EMR), data reporting from the EMR,......

Words: 607 - Pages: 3

Premium Essay

Indian Pharma

...access and acceptance, realising true potential The report is furnished to the recipient for information purposes only. Each recipient should conduct its own investigation and analysis of any such information contained in this report. No recipient is entitled to rely on the work of McKinsey & Company, Inc. contained in this report for any purpose. McKinsey & Company, Inc. makes no representations or warranties regarding the accuracy or completeness of such information and expressly disclaims any and all liabilities based on such information or on omissions therefrom. The recipient must not reproduce, disclose or distribute the information contained herein without the express prior written consent of McKinsey & Company, Inc. 12 Executive summary India Pharma 2020: Propelling access and acceptance, realising true potential 13 Global pharmaceutical markets are in the midst of major discontinuities. While growth in developed markets will slow down, emerging markets will become increasingly important in the coming decade. The Indian pharmaceuticals market, along with the markets of China, Brazil and Russia, will spearhead growth within these markets. The Indian pharmaceuticals market has characteristics that make it unique. First, branded generics dominate, making up for 70 to 80 per cent of the retail market. Second, local players have enjoyed a dominant position driven by formulation development capabilities and early investments. Third, price levels are......

Words: 9542 - Pages: 39

Premium Essay

Metabical

...METABICAL CASE STUDY REPORT INTRODUCTION Excess weight had become a big crisis in the US, affecting about 65% of the adult population leading to different kinds of health complications. In the past, several manufacturers had introduced various weight loss products like over-the-counter (OTC) drugs, herbal products, supplementary fad diets, etc. All of these have proven to be unsuccessful because of their ineffectiveness, severe side effects and lack of credibility among consumers. At this juncture, Barbara Printup, the Senior Marketing Director of Cambridge Sciences Pharmaceuticals (CSP) wants to introduce CSP’s newest revolutionary prescription drug, Metabical. It is the only FDA approved prescription drug for overweight people, which has minimal side effects and long term benefits. PURCHASING DECISION MAKING PROCESS (Q1) The communication strategy of Metabical targets both the health care provider and the consumer. Depending on the initiators there are two different purchase decision processes in the purchase of Metabical for the overweight problem. 1. For Customer: a. Problem identification: The various health awareness programs, BMI table etc help a health conscious or beauty conscious individual to identify the overweight problem. b. Information search: Once the problem is identified the individual decides on the course of action. He/She may decide to either ignore the problem or work on it. Metabical is interested in the group of individuals who are ready......

Words: 4420 - Pages: 18

Premium Essay

Personal Statement

...and Energy Policy White Paper Competition Executive Summary (Abstract) Rising healthcare spending has led to an increase in calls for ways to reduce the cost of healthcare. Amid the debate on the best approach on cut costs in the healthcare system, one of the few bipartisan provisions is the need to integrate modern technology into the storage and transfer of medical records. Current attempts to establish such electronic medical records are challenged by concerns about patient privacy, issues with the incorporation of old records, and budget limitations. We propose the development of personal portable healthcare record smart cards and a corresponding framework to simplify maintenance and transfer of patient records as an incremental step towards a nationalized electronic records system. Our proposal is a feasible and cost-effective system that applies existing technology to address inefficiencies of the current paper based medical records system; simultaneously, it also serves as a transition system to facilitate the adoption of completely electronic medical records. Author Affiliations: Xiao and Yu are both undergraduates at UC Berkeley. Contact Information: ayu.yua@gmail.com or crx687@berkeley.edu 1 1. Introduction During the second half of the 20th century, the national expenditure on healthcare increased dramatically. As of 2005, over 16% of the US GDP is spent in the healthcare system, and at the current rate it could surpass 20%, or $4.3 trillion, by 2017 1...

Words: 4983 - Pages: 20

Free Essay

Change Management

...Change Management in Action Planning and implementing change in healthcare: a practical guide for managers and clinicians Nadia Gittins and Simon Standish HLSP Institute Why What hat If W How September 2010 Who About tHiS bookLet contentS This booklet is aimed at senior clinicians and healthcare managers who would like help in thinking through, planning and then implementing changes to their healthcare services locally. It provides practical assistance in a way that assumes no prior theoretical background to what is often called ‘change management’. Introduction The Why of change The What of change 3 5 8 10 14 16 17 the booklet is based on HLsP’s experience in supporting individuals and organisations in several countries including nigeria and Russia. Most recently, HLsP designed a successful change management programme conducted for over 400 Iraqi clinicians, administrators and policy makers during 2007-2009. the aim of this programme was to assist participants to become Agents of Change in re-establishing their healthcare system1. there is a wealth of tools and techniques to help with planning and achieving change. Based on HLsP’s experience, the team refined the approach and focused on the tools that really help clinicians to formulate, sell and negotiate their vision of change, and then to plan for successful implementation. the tools presented in this booklet are the ones that clinicians and managers participating in change management......

Words: 6305 - Pages: 26

Premium Essay

Inventory

...directly addresses the issues faced in the pharmaceutical sector. On the other hand, this sector is very much ready for and in need of sophisticated supply chain optimisation techniques. At the supply chain design stage, a particular problem faced by this industry is the need to balance future capacity with anticipated demands in the face of the very significant uncertainty that arises out of clinical trials and competitor activity. Efficient capacity utilisation plans and robust infrastructure investment decisions will be important as regulatory pressures increase and margins are eroded. The ability to locate nodes of the supply chain in tax havens and optimise trading and transfer price structures results in interesting degrees of freedom in the supply chain design problem. Prior even to capacity planning comes the problem of pipeline and testing planning, where the selection of products for development and the scheduling of the development tasks requires a careful management of risk and potential rewards. At the operation stage, it is often difficult to ensure responsiveness. Most pharmaceutical products involve primary active ingredient (AI) production (often multi-stage chemical synthesis or bioprocess) and secondary (formulation) production. Both of the stages are characterised by low manufacturing velocities and are hampered by the need for quality assurance activities at several points. It is not unusual for the overall supply chain cycle time to be 300 days. In this......

Words: 10158 - Pages: 41

Premium Essay

Ethic and Corporate

...PharmaCARe is in their land harvesting their native crop for medicine use. Institutional review boards (IRB) independent ethics committees (IEC), or ethics review boards (ERB)) are formal groups of professionals designated to review and monitor research involving human subjects. The IRB provides critical review and oversight for research and has the authority to approve, require modifications or disapprove research. The main purpose of the IRB is to assess the scientific, ethical, and regulatory aspects of a case, in order to protect the rights and safety of study participants. The structure and PharmaCARE of the independent ethics committees (IEC) or Institutional Review Boards (IRB) varies from one country to another, but nearly all require payment to be made to review the clinical trial protocol and any amendments that are required to be made to the contract. A new U.S. law requires pharmaceuticals to be tracked and secured across the healthcare supply chain. Pharmaceutical supply chain leaders must re-evaluate their current and future track-and-trace strategies now. The ethics committee of clinical research or Institutional Review Board (IRB) is defined as an independent body (a review board or committee, institutional, regional, national, or supranational), constituted of medical/scientific professionals and nonmedical/non-scientific members, whose responsibility it is to ensure the protection of the rights, safety, and well-being of human......

Words: 2977 - Pages: 12

Premium Essay

Health Economic Costs of Tobacco Smoking in Canada

...difference between two types of costs. One is the cost in case of prevalence of smoking and the other cost is the cost when there had been no smoking. The costs if smoking is calculated by subtracting these costs. There are usually two distinct types of costs associated with the tobacco smoking. One is the direct cost and the other is the indirect cost. Direct cost includes the cost of those tobacco services and goods that involve a monetary exchange. This direct cost usually takes place at the market place. Indirect cost refers to those losses that have no exchange of money. This cost includes the loss to valuable time due to the disability and illness due to smoking. The other indirect cost may be the premature loss of lives (WHO, 2011). Direct Costs This cost include the monetary costs occurred due the illness caused by smoking related activities. The other form of direct cost is the monetary cost of tobacco services and goods consumed. We have to make payments in the direct cost of smoking. Some of the direct costs of smoking occurred by using healthcare services. Other direct costs are related to non-healthcare costs (WHO, 2011). Researchers have identified two basic approaches for the determination of direct economic costs of smoking. These two approaches are lifetime cost and annual cost approach. The following section will present both the direct and the indirect costs of smoking. The healthcare costs of smoking include physician services,......

Words: 3675 - Pages: 15

Free Essay

Healthsouth & the Scrushy Way

...NOTE: Facilitator noted that more indepth info would have been beneficial to this paper, so please only use this as a reference. Table of Contents 1. Assignment cover sheet p. 0 2. Title page: HealthSouth and the Scrushy Way p. 1 3. Table of Contents p. 2 4. Introduction p. 3 5. Government Subsidies p. 3 6. Signs of Corruption p. 4 7. Ethical issues of HealthSouth p. 5 8. Management of HealthSouth p. 5 9. Intimidation and Cooperation p. 6 10. Culture of Corruption p. 7 11. Lavish Lifestyle and Philanthropy p. 8 12. Impact on Stakeholders p. 9 13. Charges p. 10 14. Outcome and Fairness of Punishment p. 10 15. Conclusion p. 12 16. References p. 13 HealthSouth and the Scrushy Way Richard Scrushy overcame challenging teenage years, dropping out of high school and later obtaining his GED to become one of the most successful executives in the United States. Scrushy did so by subsequently getting his respiratory therapist certification and opening his own rehabilitation center, an all-in-one medical facility that led many to copy his idea. Scrushy founded HealthSouth in 1996 using $1 million in seed capital and turned it into a hugely successful medical services empire worth over $4 billion at its prime (Haddad, Weintraub, & Grow, 2003). HealthSouth had......

Words: 3288 - Pages: 14

Premium Essay

Education

...Distribution channel strategy design: Application and implementation in healthcare ANDERS RAVN Master of Science Thesis Stockholm, Sweden 2011 Distribution channel strategy design: Application and implementation in healthcare Anders Ravn Master of Science Thesis INDEK 2012:85 KTH Industrial Engineering and Management Industrial Management SE-100 44 STOCKHOLM Master of Science Thesis INDEK 2012:85 Distribution channel strategy design: Application and implementation in healthcare Anders Ravn Approved Examiner Supervisor 2012-06-21 Mats Engwall Jannis Angelis Commissioner Contact person Clinical Innovation Abstract Healthcare is a very important and intimate service virtually all people use at least at some occasion in a lifetime. It is also highly complex and variable with heterogeneous patients requiring individualised attention in order to be effectively treated. This requires large resources in terms of labour, knowledge, skill, and time which is why in the past, improving productivity has been difficult. Information and communications technology, ICT, has been seen to have potential to improve productivity in e.g. diagnosing, devising treatment plans, communicating with patients and clinical staff, and record-keeping if applied correctly. During mainly the 1990s, the banking sector changed its distribution channel strategy to focus increasingly on Internet banking rather than local branches. If......

Words: 28162 - Pages: 113

Premium Essay

Data Mining in Hospitals

...Applications in Healthcare Hian Chye Koh and Gerald Tan A B S T R A C T Data mining has been used intensively and extensively by many organizations. In healthcare, data mining is becoming increasingly popular, if not increasingly essential. Data mining applications can greatly benefit all parties involved in the healthcare industry. For example, data mining can help healthcare insurers detect fraud and abuse, healthcare organizations make customer relationship management decisions, physicians identify effective treatments and best practices, and patients receive better and more affordable healthcare services. The huge amounts of data generated by healthcare transactions are too complex and voluminous to be processed and analyzed by traditional methods. Data mining provides the methodology and technology to transform these mounds of data into useful information for decision making. This article explores data mining applications in healthcare. In particular, it discusses data mining and its applications within healthcare in major areas such as the evaluation of treatment effectiveness, management of healthcare, customer relationship management, and the detection of fraud and abuse. It also gives an illustrative example of a healthcare data mining application involving the identification of risk factors associated with the onset of diabetes. Finally, the article highlights the limitations of data mining and discusses some future directions. K E Y W O R D S ■ ■ Healthcare......

Words: 5507 - Pages: 23

Premium Essay

Emr Research and Opinion Paper

...4 d. Less Waste 4 e. Compliance 5 II. Disadvantages of EHRs 6 a. Lack of Standardization 6 b. Security & Privacy Concerns 7 c. System Infrastructure Issues 8 d. Risk of Liability and Patient Uncertainty 8 III. EHR Technology 9 a. EHR Benefits 10 b. EHR Types 11 c. EHRs Future Evolution 13 d. EHR Technology versus Handheld SMART devices 14 IV. Trends and Consequences 15 a. Aggressive Implementation 16 b. High Costs 16 c. Labor Investment 17 d. Opportunity Cost 17 e. Impact on Researchers, Policymaker and Educators 18 V. Final Opinion 19 VI. Bibliography 22 VII. Appendix I 28 VIII. Appendix II 31 I. Advantages of EHRs In an effort to reign in rising health care costs and increased health care disparity and inequality in the U.S., former president George W. Bush doubled the funding for Health Care Information Technology to 100 million in 2005 (The White House). It was part of a larger plan to utilize latest information technology to standardize patient and health records, which despite spending 1.6 trillion dollars, attributed to 98,000 medically related errors in 2004. The plan was part of his campaign promise and was reiterated in his January 20, 2004 State of the Union address when, President Bush remarked, “by computerizing health records, we can avoid dangerous medical mistakes, reduce costs, and improve care.” Considering that the federal government is “one of the largest buyers of healthcare - in Medicare, Medicaid, the......

Words: 7955 - Pages: 32

Premium Essay

Mgt615 Db

...Unit 1 Week 1: UC Davis Graduate School of Management released a study in 2007 which stated that women are under-represented in executive positions and board seats. This study looked at 400 of the largest publicly-held corporations in the state of California which resulted in a 10:1 ratio between men and women in these positions and seats. That means that for every woman represented there are nine men in leadership roles. Half of these companies have no female executive officers, more than 30% of the companies have no women in a top executive position, and 47% have no women in the boardroom. Only 13 of the 400 companies have a CEO that is female (Gunelius, 2007). A program introduced into the healthcare field address the cultural and linguistic barriers by understanding the potential costs and benefits. Their strategy to leverage leadership diversity has three steps. Step one is to respond to the shift in the consumers demographic by providing empirical evidence of the linkage between diversity and performance. The second step is diversity ensures competitiveness which links investments in diversity to financial outcomes and organizational metrics of success. The third step is to provide imperative to the business case by making organization leadership responsible for cultural competence as a performance measure (Dotson & Nuru-Jeter, 2012). In 2006, Rush University Medical Center formed a committee to review the work within the institution. Rush benefitted from the......

Words: 1614 - Pages: 7

Premium Essay

Cyh Stock

...Managed Investment Portfolio December 21, 2012 Community Health Systems (CYH) Abstract With stock prices almost doubling in the last year, some analyst and investors now believe Community Health Systems may be overvalued and will soon see a price decrease. However, Community Health Systems has very high continual growth potential. Earlier this year, Community Health Systems made an announcement that they will be acquiring another hospital. Acquisitions and mergers have been strength for Community Health Systems, boosting their revenue streams by reforming underperforming facilities. Supplemented by recent improvements in revenue growth in the last few quarters and potential benefits under the second Obama administration, there is a good chance for continued earnings growth. The reasons for my belief will be supported by the explanation of law changes that will benefit the health industry, health care trends, their new acquisition, and total debt. Later I will use a FCFE (Free Cash Flow to Equity) Demodaran discount model to further evaluate the value of the equity of the firm. CYH has been taking on more debt lately and I will discuss the benefits of their actions. Introduction Community Health Systems, Inc. is one of the largest publicly traded operators of hospitals in the United States in terms of facilities and net operating revenues. It was originally founded in 1986, but was later reincorporated as a Delaware corporation in 1996. CYH provides healthcare......

Words: 3247 - Pages: 13

Premium Essay

Hospital Abc Case Study

...1.0 Recruitment & Retention Plan Recruitment refers to the process of attracting, screening and selecting qualified people for a position within an organization (Sheryl & Amy, 2012). According to the case study, the major issue is the difficulty in attracting new employees. To be more specific, Hospital ABC found that there are still vacancies in critical areas that have yet to be filled up. Even with extended block, the Hospital will have difficulty attracting good employees as there are many other private hospitals competing for the same pool of talent. These hospitals are not afraid to pay above average market rates to secure these employees. Organizations within the healthcare industry are competing for qualified applicants to safeguard future growth. As such, there is a need for organizations to analyze the existing market competition for talent and create the corresponding responses in terms of competitive reward packages. The recruitment policies of the competitors also affect the recruitment function of the organizations. To face the competition, many organizations have to change their recruitment policies according to the policies being followed by the other competitors. The recruitment policy of an organization states the objectives of recruitment and provides a structure for implementation of recruitment program. Of primary importance is to ensure the organization’s recruitment plan is reaching out to the right talent pool in filling open roles. At the same......

Words: 5489 - Pages: 22