TAILIEUCHUNG - What the hospitals and health systems are and how they work: Part 2

(BQ) Continued part 1, part 2 of the document What the hospitals and health systems are and how they work has contents: The health system emerges; mergers, acquisitions, and the government; structure, organization, and portals to care; the physical facility; business activities and the business of medicine, and other contents. Invite you to refer. | What the hospitals and health systems are and how they work: Part 2 © sudok1/Getty Images CHAPTER 9 The Health System Emerges Meghan Gabriel, Kendall Cortelyou-Ward, Timothy Rotarius, and Reid M. Oetjen CHAPTER OBJECTIVES ■■ Describe how the healthcare system in the United States emerged from a historical perspective. ■■ Explain the complex rationale for and the implications of hospital mergers in the United States. ■■ Highlight the different classifications of hospitals including: religious, academic, government, and critical access. ■■ Differentiate between not-for-profit (NFP) and for-profit run hospitals based on ownership. KEY TERMS Certificate of Need (CON) Merger For-profit Not-for-profit ▸▸ Introduction A hospital system is composed of two or more hospitals that are owned, spon- sored, or contract-managed by a central organization. This chapter addresses the how and why of health system formation in the United States and the advantages and disadvantages of bundling providers together in a geographic area. In addition, the rationale behind long-existing systems consisting of affiliations such as religious and government will be explored. This chapter continues by examining the effects of system competition and the extent to which it may or may not benefit patients, and addressing the apparent reasons for system membership. 119 120 Chapter 9 The Health System Emerges ▸▸ History of Health Systems in the United States Hospitals in the modern sense have only existed for roughly 100 years and were originally designed to treat the poor (Fillmore, 2009). As the healthcare industry matured, these small-scale charitable organizations transformed into health sys- tems that are large, influential, effective, and profitable (World Health Organization [WHO], 2000). Health systems have continued to take over independent facilities with the proportion of acute care hospitals controlled by the largest

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