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Health Care Reform and Its Impact on Business Planning

News

April 16, 2010


On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act passed by the Senate on December 24, 2009, and by the House of Representatives on March 21, 2010.1 On March 30, 2010, the President signed the Health Care and Education Reconciliation Act of 2010, making changes to the Patient Protection and Affordable Care Act.

It is essential for organizations to understand how some of the larger changes engendered by this health reform legislation will affect business practices and performance—which components will require immediate changes and which will have long-term implications. Scientific and business expertise will need to be coordinated for organizations to identify the implications for their investments and operational planning. Some of the new provisions specifically address changing markets for insurance products, changing programs to affect health risks, changing investment opportunities to increase health-care efficiencies and lower costs, and changing needs for health-care personnel and services to meet demands.

We consider expected changes in four important areas as a result of this reform package, and the related role of science-based analysis for organizational planning.

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