Many healthcare systems are using economies of scale to standardize operations across chain of hospitals while introducing an innovative model of care. In the Greater Memphis Area both the Baptist Healthcare System and the Methodist Healthcare System have added multiple hospitals and dozens of physician practices in the recent past.
In the areas that they currently serve, one can reach either of the facility or one of the participative practitioner with in minutes.
The changes in health care today is driven primarily by three factors:
- System that allows more patient care to move out of hospitals and into ambulatory settings
- Increased regulation making the hospitals expensive to build and maintain
- Cost shifting to patients, prompting them to empower lower-cost options for health care
To address these changes, both the hospitals are building a future delivery system that will meet the outpatient-centric needs of patients in this economies of scale systems.
Disclaimer: Opinions expressed are solely personal and do not express the views or opinions of any other person or entity.
http://www.acodatabase.com/blog/economies-scale-and-accountable-care-organization-aco
http://www.dailykos.com/story/2010/09/05/898866/-Healthcare-Economics-Scale-Scope-and-Standardization
http://www.quora.com/What-is-the-difference-between-economies-of-scale-and-increasing-returns-to-scale
http://www.methodisthealth.org/about-us/our-culture/affiliations.dot
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