Background
In US efforts are being made towards rapid growth of managed health care services as of 21st century that is aimed reducing the cost of health care while at the same time tries to bring an improvement in its quality. As the competition in the health care sector intensifies the areas that would be of main focus are satisfaction of patient, quality of service and management of services in an efficient manner. Thus the health care organizations need to try developing and implementing a sound strategy which provides health care to the patient that is good and effective while at the same time is also able to keep the costs in control. It is also noted in this case that the health care sector operates in an environment that is professionally complex and faces the challenge of delivering health care that is of high quality and affordable at the same time.
Industry background
Despite the fact that universal healthcare is not provided to the citizens of the country, it is seen that USA spends substantially a greater fraction of its GDP on health care as compared with many industrialized countries. As employers seek relief from rising cost of health care through higher levels of co-payment of co-insurance, even those who have an insurance cover are finding it difficult to pay for the rising cost of health care. Along with the rising costs of healthcare in the US, the other major factors that are plaguing the health care industry are variance in practice, care quality and patient’s safety. It was estimated that about 195,000 people died in 2004 from medical errors that could have been prevented. In short it appears that the patients are concerned about the rising cost of health care along with the cost of health care and safety of the patients. Thus it appears that the health care system in the US is not working in an environment that