Instructions: This case study is designed to provide examples of the types of is

Instructions: This case study is designed to provide examples of the types of issues faced in the management of a health system. The report should be:
* 1 page in length.
* 12-point font, single spaced.
* Do not include a title page. Simply put your name and date at the top of the page.
You will likely not be able to answer all aspects of the case study questions in the one-page response that management has requested. Therefore, you must determine what are the crucial aspects that need to be covered. You must provide a clear recommendation and state why this is your recommendation. In addition to stating why you support this recommendation you must also address the cons to your recommendation. Note the purpose of this is to proactively address the likely concerns, but not discredit you recommendation. I want your thoughts and economic, logical reasoning. Go deeper in the case study.
Assignment:
The health system for which you work operates eight hospitals (a large tertiary hospital, two teaching hospitals, and five community hospitals) as well as a large network of specialty care and primary care clinics. While there are two other health systems in your market, your system is the dominant firm in the market.
As part of positioning itself and learning to succeed in a value-based reimbursement environment, the health system for which you work is considering various options for how it should staff itself.
Currently, the system does not directly employ physicians in its hospitals, but privileges various specialty physicians to practice in the hospital to provide the highly specialized advanced care for which is it well known as a high-quality institution. In contrast, the physicians and non-physician providers who work in your health system’s network of primary care clinics are employees of the health system. Their compensation consists of a base salary plus volume incentives.
To achieve their positioning/learning goal, the following options are being considered by executive leadership:
* Attempting to buy the specialty practices who work in your hospitals and making these physicians employees of the health system and compensating them on (1) a fixed salary, (2) a base salary plus volume incentives, or (3) a base salary plus profit sharing.
* Changing the compensation of the network physicians and non-physician providers who work in its network of primary care clinics from a salary plus volume incentives to either a fixed salary or a base salary plus profit sharing.
* Status quo: no change.
Your task is to consider which of these options best enables the health system to learn and position itself for succeeding in a value-based reimbursement environment. Discuss the change in incentives needed, if any, and how these incentives will be advantageous to the health system in achieving its goal. Consider the economic incentives created by the path you recommend. How are the incentives beneficial to the health system’s stated goal? In what ways, if any, are the incentives counterproductive to the goal and how do you recommend mitigating these counterproductive incentives?
As you consider these options, keep in mind that the system is still largely reimbursed on a fee-for-service basis. Hence, the health system still needs to succeed in that environment while preparing for the value-based reimbursement environment. This means that the incentive structure should not ignore the fee-for-service reality.