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?

Question

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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The Answer of 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?

Doctors Health Care System Has Integrated Health Networks in Three