Consolidating healthcare organizations

stemming from “The New Health Care Industry: Integration, Consolidation, Competition in the Wake of the Affordable Care Act,” a conference held recently at Yale Law School’s Solomon Center for Health Law and Policy.Links to all posts in the symposium will be added to Abbe Gluck’s introductory post as they appear, and you can access a full list of symposium pieces here or by clicking on the “Yale Health Care Industry Symposium” tag at the bottom of any symposium post.“help us make better enterprise-wide business decisions,” said Kerri Cullity (pictured), managing director of healthcare advisory at KPMG.“Now we’re actually starting to see that go into not only the healthcare providers, but also into the clients that actually support them as well.” Cullity estimates that 99 percent of the time, Service Now is the platform of choice because “it’s so easy to use.” She spoke with Dave Vellante (@dvellante) and Jeff Frick (@Jeff Frick), co-hosts of the CUBE, Silicon ANGLE Media’s mobile livestreaming studio, during this year’s Service Now Knowledge17 event in Orlando, Florida.

Though it’s possible that an oligopoly can be competitive and result in high output and low cost, most often market dominance leads to higher prices, less innovation and a loss of social welfare.The economics of the consolidation are supported by the Accountable Care Act, which rewards scale over competition.Benefits are standardized, premiums are de facto price-controlled and margins have compressed to commodity levels.The healthcare sector faces many challenges, including problems with outdated legacy systems, out-of-sync workflows and lack of standardization, according to Cullity.Getting granular, to the extent of making physical inventories of equipment and supplies, is part of how KPMG helps organizations manage assets and cut costs.Of the previous five largest insurers, only United Health Group has sat out the merger wave, at least so far.

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