Foundation Healthcare in Australia: History, Development, and Analysis

This report provides an overview of Foundation Healthcare in Australia, tracing its history from the early 1990s to the mid-2000s. It begins with the origins of the company, including the failed ventures of Formulab Neuronetics and Giltnet, and then focuses on the innovative use of artificial intelligence. ...Read More

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Subject: Foundation of Healthcare in Australia
Dear Sir/Madam,
Background
Fountain healthcare in Australia dates back in the 1990’s. It was the rebirth of Formulab
Neuronetics and the Giltnet companies that had failed earlier on. It gained tremendous success
because of the innovative marketing innovated by Antony Richter who created artificial
intelligence in the computer world. The technology boasted a parallel processing in reasoning.
The Formulab artificial intelligence enabled human-like feelings, talk, empathy and even provide
advice. The idea was promising and sent the stock prices shooting before the market forces
rejected its idea leading to massive loss of the large capital reserve. Academics rejected this idea
resulting in a voluntary liquidation in the late 1990's (Jonathan, 2017).
The idea
The health care industry offered a potential of considerable economic gains. The industry had
high competition. The investor Michael Boyd with his Sonic company took a different path in
competition by establishing a group of interlinked firms in which they were the majority
shareholders. An establishment of the LifeCare was initiated to deal with paramedics and dental
services. The vertical extension advantages were reaped significantly in that dangerous path. The
best thing was that risks taken by one company did not affect the shareholders of the other
organizations with opportunities for intercompany referrals. Boyd’s majority shareholding
protected Foundation from hostile takeovers (Carr, 2010).
Development and success

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The Foundation Healthcare started operation by buying the troubled Formulab with Boyd
pumping in a new capital investment. Initially, referrals were occasioned due to the few
pathology companies. Sometime later, it sold off all the pathology section and took more
investments in general practice. The share value doubled within few months and initiated
investments. The inflated share prices reduced cash investments as the shares were sufficient for
making purchases. The acceptance by markets and banks expanded operations to Queens
(Sobolewski, 2017)land, Victoria, South Australia and the New South Wales. Foundation health
centres that accommodated the general practices.
The economy
The general practices were vulnerable to break up. Most of the profit reaped was from GP’s as
compared to the referrals. The GP's started being underpaid and abandoned clinical services.
Earlier in the 2000's business analysis of foundation disillusioned its future, investments
dropped, and the share prices fell (Jonathan, 2017).
Outcomes
Foundation Healthcare seemed too unlikely to be going under because of its significance to the
founders. Some doctors used to accept shares as salary payment have been greatly criticized. The
idea was meant to keep costs down. The hope of the GP’s comes from current incentives. In the
mid-2000's share prices have remained depressed and made referrals to the Lifecare company
(Elizabeth, 2017).

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References
Carr, R., 2010. Health care facilities. Whole Building Design Guide, 2(17), pp. 1-42.
Elizabeth, J., 2017. The gap in human resources to deliver the guaranteed package of prevention
and health promotion services at urban and rural primary care facilities. Human Resources for
Health, 1(15), p. 49.
Jonathan, E., 2017. Person-Centreed Care and Culture Change. Take care of the Age, 8(18), p. 6.
Sobolewski, M., 2017. Kowalczuk, Krystyna, The Reciprocal Effect Of Psychosocial Aspects
On Nurses' Working Conditions. Frontiers in Psychology, 8(1), p. 1386.
Best Regards,
Name: