Learning Goal: I'm working on a business discussion question and need an explanation
and answer to help me learn.
What forces have changed US healthcare from a cottage-based, loose network to what it
is today?
Healthcare Industry Transformation 1
Healthcare Industry Transformation
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Healthcare Industry Transformation 2
Healthcare Industry Transformation
The US healthcare system has dramatically transformed over the past few decades,
moving from a primarily cottage-based, loose network to a more organized, regulated system.
There have been a variety of forces that have driven this shift, many of which are closely related
to broader socioeconomic and political changes in the US. The first significant force that has
considerably impacted the US healthcare system is the growth of the middle class. As more
Americans have become more affluent, the demand for higher-quality medical care has increased
(Venkataramani et al., 2020). This has led to a move away from the cottage-based, loose network
of healthcare providers towards hospitals and other large medical institutions better equipped to
meet the needs of a growing and increasingly sophisticated population.
The second major force that has changed US healthcare is the emergence of managed
care companies, such as HMOs and PPOs. These companies have significantly impacted the US
healthcare system, as they have allowed for greater regulation and control of healthcare costs. In
addition, they have also allowed for greater access to healthcare services, as patients are no
longer limited to the services offered by their local providers (Harrill & Melon, 2021). Finally,
the emergence of new technologies and treatments, such as electronic medical records,
telemedicine, and robotic surgeries, have significantly impacted the US healthcare system. These
technologies have allowed for more efficient and cost-effective delivery of healthcare services
and a more excellent range of treatments available to patients (Bhatia, 2021). Overall, the US
healthcare system has undergone a dramatic transformation over the past few decades, largely
driven by the growth of the middle class, the emergence of managed care companies, and the
introduction of new technologies and treatments. As a result, the US healthcare system is now
much better equipped to meet the needs of its citizens than it was in the past.
Healthcare Industry Transformation 3
References
Bhatia, R. (2021). Emerging Health Technologies and how they can transform healthcare
delivery. Journal of Health Management, 23(1), 63–73.
https://doi.org/10.1177/0972063421995025
Harrill, W. C., & Melon, D. E. (2021). A field guide to U.S. healthcare reform: The evolution to
value‐based Healthcare. Laryngoscope Investigative Otolaryngology, 6(3), 590–599.
https://doi.org/10.1002/lio2.575
Venkataramani, A. S., O’Brien, R., Whitehorn, G. L., & Tsai, A. C. (2020). Economic influences
on Population Health in the United States: Toward policymaking driven by data and
evidence. PLOS Medicine, 17(9). https://doi.org/10.1371/journal.pmed.1003319
