A supplier perspective of managed health care

Abstract

The health care industry is undergoing significant reform due to environmental factors. This has an impact on the range of stakeholders, including suppliers. Managed Health Care (MHC) has been introduced worldwide as a measure to curb the ever increasing costs associated with health care provision. This research project is an exploratory study of a supplier perspective of MHC in South Africa. <br><br> In this study the relationship between the suppliers and the other health care stakeholders was investigated with the intention of assessing any perceived change in power dynamics brought about by the MHC imperatives. Most importantly, it was an attempt to identify cost control and appropriate reimbursement mechanisms to enhance the delivered value to end users. <br><br> Significant power shifts amongst the stakeholders were found, with the supplier gaining power in the MHC system. However, suppliers would have to provide cost effective products with the best clinical outcome to achieve sustainability. The supplier therefore has a vital function in achieving affordable health care.