A Prescription for Medical Outsourcing Success in the Affordable Care Act Milieu

ABSTRACT

Firms outsource to achieve a marketplace position of competitive advantage. The trend to outsource has permeated into the health care industry because of skyrocketing health care costs. Concerned by the rising costs of health care and the growing number of underinsured and uninsured Americans, President Obama signed into law a sweeping health care reform known as the Affordable Care Act (ACA). Most experts agree that ACA has created uncertain times for global marketers of medical outsourcing. However, when faced with demand and market uncertainties, organizations form strategic global alliances to reduce such market uncertainties. Yet, the extant marketing and management literature reflects little effort to develop a framework for understanding medical outsourcing alliance success. This research draws from the explanatory power of resource advantage theory, alliance theory, and relationship marketing to develop a conceptual framework of medical outsourcing alliance success. Furthermore, the authors provide normative prescriptions for global marketers of medical outsourcing.

KEYWORDS:

• Medical outsourcing
• Affordable Care Act
• resource advantage theory