Swot Analysis Of Obama Care
Health policy introduction
The major problem concerns the mergers between hospitals in the wake of the enactment of the Affordable Care Act (also known as the Obamacare). This is a problem because it is highly likely that these mergers will hike the costs of providing healthcare, something that the Obamacare legislation sought to address in the first place. It’s also problematic because the mergers may lead to the creation of monopolies or duopolies which tend to raise prices. That is the reason that the federal trade commission is looking into possible mergers because it deals with monopolies. Overall, high costs of healthcare would be negative, mostly for people with lower income.
Till now, as pointed above, the Federal Trade Commission is …show more content…
The basis of Obamacare lay in bringing the costs of insurance down for the uninsured, who could not afford an insurance in the first place. By making it mandatory to buy an insurance, the costs of insuring the uninsured could be brought down. Many of the healthy, young people who did not buy insurance would now have to buy it. The insurance companies would be getting more income and thus would be more willing to accommodate the older, poorer people in providing them health insurance.
For the healthcare providers, the policy of mergers is also based on economizing on costs. The idea is that the Obamacare provisions may make it expensive for hospitals to provide healthcare. In other words, costs of doing business would rise. The best way, as per their understanding, is to merge with other healthcare providers to bring down the costs through new technologies, innovation and risk pooling. This happened in the 1990’s through large scale mergers and is probably going to happen …show more content…
They are in the pipeline as there has been a lot of talk about it but nothing substantial has happened till now. A possible option is that hospitals or health care service providers are allowed to merge as they see fit so that they can bring down their costs of operations. a negative of this policy of allowing mergers would be creation of monopolistic competition in the market, which in the long run results in much higher costs. If the policy alternative is implemented, the big winners will be health care service providers since this is what they demanded in the first place. It’s difficult to point out losers because if the costs of operations come down for healthcare providers, then it’s also good for customers since they won’t be charged
The major problem concerns the mergers between hospitals in the wake of the enactment of the Affordable Care Act (also known as the Obamacare). This is a problem because it is highly likely that these mergers will hike the costs of providing healthcare, something that the Obamacare legislation sought to address in the first place. It’s also problematic because the mergers may lead to the creation of monopolies or duopolies which tend to raise prices. That is the reason that the federal trade commission is looking into possible mergers because it deals with monopolies. Overall, high costs of healthcare would be negative, mostly for people with lower income.
Till now, as pointed above, the Federal Trade Commission is …show more content…
The basis of Obamacare lay in bringing the costs of insurance down for the uninsured, who could not afford an insurance in the first place. By making it mandatory to buy an insurance, the costs of insuring the uninsured could be brought down. Many of the healthy, young people who did not buy insurance would now have to buy it. The insurance companies would be getting more income and thus would be more willing to accommodate the older, poorer people in providing them health insurance.
For the healthcare providers, the policy of mergers is also based on economizing on costs. The idea is that the Obamacare provisions may make it expensive for hospitals to provide healthcare. In other words, costs of doing business would rise. The best way, as per their understanding, is to merge with other healthcare providers to bring down the costs through new technologies, innovation and risk pooling. This happened in the 1990’s through large scale mergers and is probably going to happen …show more content…
They are in the pipeline as there has been a lot of talk about it but nothing substantial has happened till now. A possible option is that hospitals or health care service providers are allowed to merge as they see fit so that they can bring down their costs of operations. a negative of this policy of allowing mergers would be creation of monopolistic competition in the market, which in the long run results in much higher costs. If the policy alternative is implemented, the big winners will be health care service providers since this is what they demanded in the first place. It’s difficult to point out losers because if the costs of operations come down for healthcare providers, then it’s also good for customers since they won’t be charged