Doctors Health Care System Has Integrated Health Networks in Three

question 90

Essay

Doctors Health Care System has integrated health networks in three different regions: northern California, southern Florida, and Oklahoma. These three markets have vast regional differences. Because of the increasing penetration of the U.S. health-care market by managed care companies, Doctors Health Care System must create a system that offers continuity of care across the continuum for a set price in order to remain competitive. Its board of directors set the system's goal as being a leader in developing and maintaining integrated health networks that improve the health status of their communities.

Required:
To meet this goal in the three regions, should the health system's management structure be decentralized or centralized? What are the advantages and disadvantages of each option?

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Definitions:

Shareholders' Meeting

A gathering of the shareholders of a company where decisions regarding the company's policies, management, and financial matters are discussed and voted upon.

Duty of Loyalty

An obligation of individuals in fiduciary positions to act in the best interests of their company or clients.

Ethically Allowed

Actions or decisions that are permitted based on moral or ethical principles.

Unocal Rule

A legal standard from a Delaware Supreme Court case that gives boards of directors a framework for resisting takeover bids.