Business advise Essay Example | Topics and Well Written Essays - 250 words - 1

Business advise - Essay Example This massive drop in revenue may result in the hospital being unable to meet operational cost thus resulting in closure. The first solution to the problem is that the hospital can form its own ACO. Since the hospital has access to funding as a source of capital, it can easily raise money to set up an electronic record of patients (McCaffrey 217).The hospital has trained health professionals who can handle clients. This is extremely beneficial since to hospital will not need any additional funding as it makes use of resources already at its disposal. However, this is time consuming and since most of the patients around already belong to a functioning ACO, it would be very hard to convince them to join the new outfit. Second, the hospital can pot to buy some of the ACOs already in operation. The hospital would spend money on the acquisition only; the rest of the infrastructure is already in place. The challenge in this case would be convincing the doctors involved to selling their venture (McCaffrey 218).The option of buying into an already established ACO would be the most appropriate. Buying existing ACOs is a low level of risk because the system is already functional and has a client base ready to receive