Unit 4 Discussion Board Essay Example | Topics and Well Written Essays - 500 words - 2

Unit 4 Discussion Board - Essay Example Mount Sinai NYU Health is an example of a healthcare organization – a holding company – that has a multi-corporate entity. The health organization has several subsidiaries or healthcare divisions serving the greater New York City area. The hospital is listed in the book, Jonas and Kovner’s Health Care Delivery in the United States (2002), as a conglomerate with subsidiaries in ambulatory care, hospitals, and employed and affiliated physician groups. Other subsidiary-companies provide traditional home health services for Medicare, Medicaid, private insurance, and self-payers and other services not covered by federal programs. The organization is centralized, as mission, plans, and CEO financial and acquisition powers are reserved as the parent company’s while local units have separate boards with their strategic authority being limited. (Kovner & Jonas 2002, p. 163). The advantages of a multi-corporate structure in the administration of a healthcare organization such as Mount Sinai NYU Health could be seen in two main areas: profitability and quality of service. In terms of profitability, the multi-corporate structure offers an increase in volume, cost savings, and greater leverage in bargaining with managed care organizations. When it comes to the quality of service, a multi-corporate healthcare organization is said to have improved quality of care that results from standardization and specialized expertise. (p. 164) Another important and obvious aspect about multiple-corporate structure is that it allows for greater flexibility in operations because each division or agency within the whole healthcare organization may assume its own separate legal entity. Therefore, as more services are provided or more subsidiaries are added, the other subsidiaries are less likely to be disturbed. There are critics who argue