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HCAD 670 American University of Health Sciences Healthcare Administration Capstone

HCAD 670 American University of Health Sciences Healthcare Administration Capstone

Question Description

I’m working on a health & medical question and need an explanation to help me learn.

Read “Repeal Obamacare?” on Page 20 of this week’s text,”Strategic Healthcare Management: Planning and Execution” and addressthe following questions:

1. Why does politics have such an important impact on strategy in thehealthcare sector?

2. Why were healthcare organizations merging under the ACA? Why might thesestrategies have needed to be revisited under a Trump administration?

3. How does this case demonstrate the difficulty in only having aprospective strategy?

In addition to your initial post, make sure your reply to at least two ofyour peers and use at least 3 different citations and references in yourresponses.

Repeal of Obamacare? Page 20

“The ACA, signed into law in 2010, substantially changed the direction andstrategies of most US healthcare organizations. The US Department of Health& Human Services was given the responsibility of implementing many of theprovisions that sought to “expand coverage, emphasize prevention, improve thequality of health care and patient outcomes across health care settings, ensurepatient safety, promote efficiency and accountability, and work towardhigh-value health care.” The law instituted healthcare exchanges to facilitatepurchasing insurance and banned lifetime dollar limits and discrimination basedon preexisting conditions (Assistant Secretary for Planning and Evaluation2016).

The law was designed to motivate care coordination and integration acrossthe continuum of care by transitioning to a population health and value-basedcare focus. Healthcare organizations responded, among other ways, throughmergers and acquisitions. Physicians merged into mega– group practices.Pharmaceutical and insurance companies consolidated (Singer 2016). Hospitalsacquired other hospitals, as well as physician practices and insurancebusinesses. Providers opened accountable care organizations, which wereestablished to take capitation that could function next to traditionalfee-for-service models. Healthcare insurers merged to counterbalance the growingmarket power of hospitals. In sum, changes happened in and across all sectorsin the healthcare field. Much of the consolidation has been blamed on the ACA,and in early 2016 these changes seemed inevitable (Gluck 2016).

However, few predicted the election of Donald Trump in the fall of 2016 andhis effect on the direction the healthcare sector has taken. Trump signaledthat on his first day in office he would “work immediately on repealingObamacare” (Koronowski 2017). A full or even partial repeal of the ACA wouldhave significant impact on the strategies of healthcare organizations. Althoughwe may not know what the repeal means for some time, and the final shape of thehealthcare field under a Trump administration may gradually evolve, most Americanssupport coverage guaranteed regardless of preexisting conditions yet oppose amandate. The ACA also cut $700 billion from Medicare provider reimbursements,which will probably not be restored by Trump’s reforms (Kapur 2016). Whateverthe results, the political winds of change have roared through a healthcaresector that now must review and revise its plans.”

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