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Lab divestiture: trend for the future?

D Hogge, M Sabin

    Healthcare Financial Management : Journal of the Healthcare Financial Management Association
    |December 11, 1985
    PubMed
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    Community hospitals often duplicate services like MRIs due to competition. Future public policy and flexible programs are needed to manage healthcare services, especially laboratory services, under Medicare regulations.

    Area of Science:

    • Healthcare Administration
    • Health Policy Analysis
    • Medical Economics

    Background:

    • Community hospitals often maintain market share by duplicating services, such as acquiring Magnetic Resonance Imaging (MRI) machines, even when existing resources are available.
    • This competitive approach to service provision is increasingly being challenged by public opinion and evolving healthcare policies.

    Purpose of the Study:

    • To analyze the impact of healthcare competition on service duplication among community hospitals.
    • To explore the need for flexible programs in response to changing public policies and Medicare regulations.
    • To advocate for a free-market basis for laboratory services within the evolving healthcare landscape.

    Main Methods:

    • Policy analysis of current and projected public healthcare regulations.

    Related Experiment Videos

  • Market share analysis within community hospital settings.
  • Review of healthcare economic models for service provision.

    • Main Results:

    • Hospitals' reluctance to relinquish control over existing services drives service duplication.
    • Public policy is shifting towards greater control over healthcare service delivery methods.
    • A need for adaptable strategies to navigate Medicare regulations and foster market-based laboratory services.

    Conclusions:

    • The traditional model of service duplication for market share is unsustainable.
    • Future healthcare management requires flexible programs aligned with public policy and regulatory changes.
    • Implementing a free-market approach for laboratory services is crucial for future healthcare sustainability.