Business Model Transformation – Challenges for the Management of the Health Care Entity

Abstract

Every organisation has shaped its business model, which defines the way of creating value. Obviously, there several incentives for development as well as factors limiting the modification of business models. They can concern various sectors and also be analysed in various information sections. When looking for the determinants of shaping business models, one should carry out their classification. Conducting medical activity takes place in a special environment and the creation of business models in a health organisation requires close attention. Financing health care is predominantly made from public funds. As a result, shaping the revenue stream is significantly limited, as well as its differentiation. In turn, in terms of costs, unfavourable phenomena occur, causing their growth. Healthcare services are provided under quite special circumstances. Among other phenomena, one can perceive the movement of human resources from less wealthy economies to those offering more favourable employment conditions. It is also possible to identify determinants resulting mainly from the law regulation, as well as located in the field of behavioural, cultural and social factors. The phenomena mentioned above results in the transition of the business model of medical activity. These effects are also noticeable in financial flows of costs and revenues, as well as in cash flows. All of the mentioned above phenomena are important for managers who tend to pursue the set goals. In some situations, it is advisable to change the way the organization operates, to shape its organizational structure and network of connections with the environment. The aim of the article is to identify and classify barriers and incentives of business model transformation in health care organizations. The hypothesis states that among the determinants of business model transformation in health care organization tax optimization and limited resources availability are very important for their managers. The research methods contain meta-analysis of literature, observation, case-study and cause and effect relationship analysis as well as the method of synthesis.