1 Organizational Structure

Jay Levine

Massachusetts Institute of Technology; ECG Management Consultants (retired)

We now have an unparalleled opportunity to make healthcare better for the people we serve and to make it better for the people who choose this noble profession. Each of you who are involved in healthcare have a demanding and stressful job. But when you go home tired, and spent, and stressed out, ask yourself, ‘What would I rather be doing?’ What could be more worthwhile than caring for the thing others consider to be the most precious—their lives? (Charles Sorensen, MD, former president, Intermountain Healthcare)

Selected attributes of the organization, management, and financing of healthcare services differentiate this industry from all others in the United States. These unique attributes create challenges for those conducting research and analysis focused on enhancing health outcomes, improving operational efficiencies, expanding patient access, and optimizing the financial performance of healthcare delivery systems. A firm grasp of these attributes, coupled with an understanding of the organizational design of healthcare services, will provide a foundation for the conduct of research and analysis focused on improving performance, outcomes, and patient satisfaction.

1.1 Introduction to the Healthcare Industry

The healthcare industry is among the most regulated industries in the United States.1 2 Federal and state statutes and regulations, along with ...

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