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Essay / Research Paper Abstract
This 6 page industry analysis focuses on HMOs and most specifically Oxford. The paper argues that government intervention is not necessary in this industry that many believe begs to be regulated. Table of contents and graph included. Bibliography lists 8 sources.
Page Count:
6 pages (~225 words per page)
File: RT13_SA049HMO.rtf
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Unformatted sample text from the term paper:
in this industry that many believe begs to be regulated. Table of contents and graph included. Bibliography lists 8 sources. SA049HMO.wrd Table of Contents Page I. Introduction 2
II. Oxford Health Plans 3-4 Revenues, costs and profit 3-4 Product and quantity of output 3-4 Market share 4 Number of employees 4 III. The Industry 5-6 IV. Government Intervention 6-7 graph
6 V. Conclusion 7 I. Introduction Some believe that government intervention is necessary in the health care industry because of market failure. However, while some do support that
view, their thinking is flawed. The structure of the industry is such at this point, that to an extent, there is much government involvement. For the most part,
government intervention and how much of it becomes entangled in HMOs, is political. The Republican Party is split because it feels there is a need for managed care legislation but
the GOP does not want to offend its traditional base of business conservatives who do not like any form of government intervention (Scott, 1998). At issue is a fear that
health care firms will only care about their bottom lines and that patients will suffer. For example, the federal government is concerned and wants to impose rules that limit the
types of bonuses that doctors can be paid for cutting costs (Eastman & Eastman, 1997). While they have a point, if regulators will leave the industry alone, people will figure
out where to get services for their health care dollars just as they figure out where to get the best telephone rates. Competition will keep prices in reach and q uality
high as it does in every other industry. There is a great deal of regulation in the health care business and HMOs are a large part of the paradigm. Oxford
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