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Diversification and corporate restructuring revisited. Back to square one?
1Visiting Nurse Service of New York, New York.
The Nursing Clinics of North America
|June 1, 1988
Summary
Healthcare agencies historically restructured to avoid regulations and maximize reimbursement. As competition grew, diversification became key, but providers now refocus on core businesses, shifting away from complex multicorporate structures.
Area of Science:
- Health Services Management
- Healthcare Administration
- Organizational Strategy
Background:
- Historically, healthcare organizations formed multicorporate structures to circumvent regulations and optimize third-party payer reimbursements.
- Increased competition prompted home care agencies to diversify and restructure single corporate entities into new, profit-generating businesses.
Purpose of the Study:
- To provide a historical overview of corporate restructuring within the healthcare industry.
- To analyze the driving factors and strategic implications of corporate restructuring and diversification in healthcare organizations.
Main Methods:
- Historical analysis of corporate restructuring trends in the healthcare sector.
- Review of diversification strategies employed by home care agencies in response to market pressures.
Main Results:
- Initial restructuring aimed at regulatory avoidance and reimbursement maximization.
- Diversification strategies were adopted for survival amidst increasing competition.
- A current trend indicates a move away from multicorporate structures as providers refocus on core services.
Conclusions:
- Corporate restructuring is a strategic, complex, and time-consuming process.
- The evaluation of corporate structures requires continuous assessment and adaptation.
- The healthcare industry is shifting towards a refocus on core business, impacting the prevalence of multicorporate structures.