Health Care Economics - Article Example

Declines in demand for healthcare services in other communities have resulted in an increase within the Boston community. With the high-level of medical research being undertaken within the community, other healthcare systems rely on the occurrences within the Boston community healthcare system. Market structures The healthcare sector within the Boston community remains dominated by relatively low number of large organisations. This has been fundamental toward the organisational stability experienced within the healthcare market.

The prevailing market structures within the Boston community remain fundamental in determining how various stakeholders within the healthcare sector perform. The healthcare sector in Boston remains highly unique as in consists on several world renowned teaching medical centres. Notable among them are Boston Medical Centre, Massachusetts General Hospital, New England Medical Centre, among others. These academic medical centres have a significant contribution not only to the Boston community, but the entire world as well.

The reputation of Boston’s healthcare institutions plays a significant role in the existing stricter of the healthcare market within the community. . The market structures are significantly influenced by the healthcare providers and insurers as well. These two stakeholders have a fundamental role in establishment of the structures. Healthcare providers The healthcare providers form the base for any healthcare system. The providers within this community have continuously struggled to gain sufficient dominance of the market.

While seeking to improve on their market dominance, several healthcare providers merged in order to strengthen their market share. Consolidation strategies have been adopted by many healthcare providers, however, majority of these consolidation structures have not produced the desired payoff to the providers(Williams, Christianson, Barraclough, & Gaylin, 1999). The consolidation strategies have caused a reduction in the number of healthcare providers through mergers and partnerships. The healthcare sector in the Boston community has remained dominated by two major organisations; Partner and Caregroup.

The significance of Boston healthcare institutions upon the regional healthcare sector has increasingly affected the structure of many providers within the community. Numerous academic healthcare centres have continuously sought affiliates to manage the increasing demand for medical services within the community. These providers continue to be faced with expansion challenges seeking to satisfy the market demand. As opposed to other medical providers, the academic centres receive high numbers of referrals from other providers within and outside Boston.

These referrals continue to present a challenge to the academic medical providers as they seek expansion through mergers with other facilities. Other providers