Atma Business Blog

Health reform is upon us. As managed care companies battle to modify their business models to pay, there is a frantic race to be integrated providers by moving downstream. They are making blockbuster acquisitions in the buyer and provider treatment space in order to move towards “accountable treatment business” models that gather patient treatment, reimbursement, and facilities all under one roof.

Will these managed care companies have the ability to pull it off? And moreover, is it for all of us in the long run better? The deal activity is flourishing . Wellpoint has announced several recent acquisitions including direct to consumer company 1-800 Contacts. Examples such as Humana’s deal for urgent care provider Concentra and UnitedHealth’s purchase of physician network Monarch HealthCare further illustrate this growing craze. On paper, these offers make a lot of sense.

If you control the consumer or company, you can cut out inefficiencies, control costs, and reign in the current layers of exterior income. The downside is that they run the risk of alienating their alternative party panel in addition to the significant execution threat of historically 100 % pure play insurers successfully moving into patient treatment.

There is hardly any choice but to try however; the stand-alone insurer model will face significant price reductions as part of the healthcare overhaul. But can this be good for end users? On the main one hand, these built-in models can help us move from the current charge for service model that appears to be the fundamental flaw of today’s healthcare system. It makes no sense to pay per procedure with no concern for medical results.

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By merging patient treatment with reimbursement vehicles, there is a greater incentive for preventative treatment actions and alignment with patient interests. On the other hand, Americans aren’t familiar with a closed network’s perceived lack of choice. The HMO model didn’t work in the 80’s and there is not a mad rush to visit north of the boundary for medical treatment. Many think the integrated approach is the way to go and indicate Kaiser Permanante as the poster child. Kaiser’s roughly 9m lives have been using the provider’s own doctors, hospitals, and insurance plans for quite some time numerous medical measures of success now.

They have yielded a noticable difference in patient treatment, a reduction in costs and emergency care, and a healthy income margin to boot relatively. Devoid of any firsthand experience with Kaiser, I can not comment on how the model is working from a consumer perspective. If the Kaiser approach is the right model, is it scalable? And if so, isn’t it the like the nationalized health care policies that so many countries are fighting?

Renovations will consume your working capital fast, so find ways to revamp your business while keeping the majority of your working capital in tact. You will more than likely need a few of that working capital to pay new vendors, order inventory or hire new employees. Start-Up Expenses – When you get a preexisting business that is declining, more than likely, you’ll have a variety of ideas.