CHAPTER 4

Analyzing an Industry

Industry Influences a Company’s Options and Outcomes

The Affordable Care Act (ACA) thrust the healthcare industry into decades of upheaval and uncertainty. The ACA is designed to increase insurance coverage by expanding Medicaid eligibility in 2014 to include individuals within 138 percent of the federal poverty level, and by creating state-based insurance exchanges where individuals and small business can buy health insurance, with federal subsidies available for individuals with incomes less than 400 percent of the federal poverty level.

Accommodating 30 million new consumers, most of whom are low-income patients with little medical care histories, challenges the industry’s established delivery systems. The industry, ...

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