Case Study: Healthcare Globalization and Walmart's Expansion

This case study analysis examines two distinct but related business challenges: the globalization of healthcare and Walmart's foreign expansion. The first case explores the increasing prevalence of healthcare globalization, particularly the high costs in the US, and analyzes relevant regulations like HIPAA, HITECH Act, and MACRA, assessing their impact on cost reduction and patient care. The second case focuses on Walmart's complexities in international markets, including the US, Mexico, and China, and the challenges posed by varying consumer behaviors and local laws. It discusses the application of business and legal frameworks like the Securities Act of 1933 and the Securities Exchange Act of 1934, as well as intellectual property laws, to mitigate risks and facilitate expansion. The analysis concludes with recommendations for both cases, emphasizing the importance of adapting to local regulations and consumer preferences for sustainable growth.

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CASE STUDY ANALYSIS
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CASE STUDY ANALYSIS
Case 1: The Globalization of Health Care
Issue
It has been observed that many countries do not have enough specialist doctor, and at the
same time treatment in some of the developed countries, especially in America, is very high.
Therefore, the concept of globalization in the health care sector has become essential and
prevalent. “Is there any development due to the globalization in Healthcare?”
Rule
In order to avoid corruption in the healthcare sector, several regulations have been
constructed. Among all the rules and regulations, some of the essential rules and regulations
are HIPAA (Health Insurance Portability and Accountability Act), The HITECH Act and
MACRA Act. HIPAA was enacted for protecting health insurance coverage for the workers
who change or lose their job. The HITECH (Health Information Technology for Economic
and Clinical Health) was enacted for promoting technology in the healthcare sector.
Additionally, MACRA (The Medical Access & CHIP (Children's Health Insurance Program))
Act was enacted to address payment for the doctors as well as the other employee who are
associated with the medical sector.
Application
Under the HIPAA act, the boundaries have been set on the use of the health record by the
depart of HHS that is Health and Human Services. Recently the act was amended and in the
changed rule is also associated with more privacy of the healthcare information. The act
outlines the safeguards for protecting the information of patients as well as establishes the
criminal and civil penalties for the violation. The law is applied not only in the hospital but
also in the nursing homes, chiropractors, psychologist and pharmacies. Recently is law is
implemented with more strictness. It has been observed that the over cost problem in the
healthcare sector could be reduced to a certain extent, and a particular segment of people was
benefited from the rule.
Apart from the direct healthcare sector, some of the business associated with health care like
third party administrators, pharmacy managers for different kinds of health plan and
transcription and billing companies started to increase the price for providing goods and
services to a very high amount. Therefore, the act was amended, and the maximum price has
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CASE STUDY ANALYSIS
been set for the provision of goods and services by those healthcare companies (Health and
Human Services, 2019).
The HITECH Act was enacted for the proper use of technology in the healthcare sector. The
main purpose of using different kinds of technology in this particular sector is to diagnose the
disease better, at the same time, to reduce the cost in the healthcare sector in the long run.
Moreover, the act mandates the audit of the provider of healthcare in order to determine
whether the companies follow the compliance of HIPAA privacy rules which are related to
security and privacy or not. As per the rule, the cost of non-compliance of the rule is very
high. An organization may have to pay a very high amount which is near about $2 million per
calendar in each year for the violation of the rules. A hospital can also incur a loss if
something wrong is found at the time of audits and investigations. According to the particular
act, the administrator needs to access the compliance of the security of the practice of the
organization. It also needs to be sure by the organizations to make the proper procedure of the
electronic PHI and the update all the HIPAA security and privacy policies (HHS, 2019).
MACRA is a reauthorization act which was enacted in 2015 to overcome the address related
issues. However, later, the act was amended, and changes have been made in part B of the
act, in which focus was shifted on value-based reimbursement. The main focus of the act was
shifted to the treatment of model-based on Sustainable growth rate (SGR). The act also
consists of changing the way in which Medicare rewards for the value over volume,
streamlines of the multiple quality programs, as well as giving additional payment for the
participation in the alternative payment model (CMMS, 2019).
Conclusion
From the above discussion, I think that high cost in the healthcare sector has become a
prevalent issue and therefore many peoples are now choosing different countries for the
diagnose and the problem is more prevalent in the USA. However, many rules and regulation
such as Health Insurance Portability and Accountability Act, Health Information Technology
for Economic and Clinical Health and The Medical Access & CHIP Children's Health
Insurance Program have been enacted, and later those were amended for overcoming the
high-cost issues in the healthcare sector. A more strictness in some of the rules needs to be
brought so that each can afford the healthcare service.
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CASE STUDY ANALYSIS
Case 2: Walmart's Foreign Expansion
Issue
The largest retailer, Walmart, faces several complexities in the market of the United States
(SEC, 2019). Based on the case study, the world’s largest retailer confronts the slowdown for
business growth in the country. In addition, the organization also faces some hindrance for
business development in the market of Mexico. Due to having a different shopping habit in
Mexico, the company faces some targeted issues. In China, the company faces several
complexities for selling the foods items. “Is there any sustainable growth due to the
expansion of Walmart?”
Rules
In the United Kingdom, several laws and rules are developed that potentially assist the
chosen organization with respect to business development in domestic as well as in the global
market. In the case of running the business, several tax laws are released. Such tax laws
define several regulations and rules based on the federal internal revenue code and the
specific state tax codes (Reporting, 2012). In addition, the corporate income tax is released
that provides the description related to the business expansion. Apart from the tax laws,
several security regulations were released that is based on the Securities Act of 1993. The
Securities and Exchange Act of 1934 was developed that focus on regulating several
companies and their report. Moreover, laws related to corporate finance is released that deals
with several fundamental principles regarding the stock worth. Intellectual Property Law is
developed in the United States that regulates and mitigates several complexities in business.
In Mexico, several laws and regulations are developed that are almost similar to the United
States for business development. Based on the case study, the chosen company has to follow
the related laws with respect to business development. In China, several tax laws are
developed in respect of the business of the global organization.
Application
Following the case study, the world's largest retailer gradually expands its business in several
international markets. In the process of business expansion, the organization faces targeted
complexities related to shopping habits and the chooses of consumers. The rules mentioned
above and regulations are related to the business structure of the chosen retailing company
(US Taxation, 2019). In this aspect, the Securities Act of 1933 develops based on two basic
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CASE STUDY ANALYSIS
objectives. First, it requires that the investors gain financial and other related information
related to the securities that are offered for the public sale. Second, the act pieces of advice
for prohibitive misrepresentations, deceit and other related fraud cases in respect of securities.
Based on the act, the selected organization can provide freedom towards investors to prohibit
additional risks in the domestic market. Instead of having millions of employees, multiple
stores in the domestic and international market, the company faces several complexities
related to the slowdown of business. An industry report says, the management of the
organization almost fails to follow the rules that ultimately create several hindrances, thereby
decreasing the financial value (WIPO, 2019). The security act is applied to prohibit fraud and
other related complexities in the business. It can be assessed, the Securities Exchange Act of
1934 is applied in respect of the business development in the target market. Following the
case study, Walmart can follow the respected act to regulate the disciplinary power in the
business (SEC 2019). The introduction of disciplinary power intends to mitigate the
complexities, thereby involving several skilled executives in the business. Moreover, the
association of skilled executives potentially handle the business process of the chosen
organization.
Based on the description of the case study the renowned organization confronted with some
issues in the market of Mexico. In this aspect, the organization releases the targeted strategies
in case of identifying the demands of the people in the market of Mexico. In addition, the
organization focuses on hiring several local managers, thereby following the targeted laws.
Moreover, the local managers and other respected staffs have the ability to understanding the
Mexican culture. Furthermore, the association of the tax law intend to bring several
opportunities for the business of the chosen organization. Apart from that, Intellectual
Property Law is applied in respect of protecting the business from the unauthorized
intervention. Several unauthorized interventions intend to decrease the brand value of the
organization in the domestic and international market. In respect of the economy of China,
the company has to follow the respected laws with respect to attracting the greater number of
consumers.
Conclusion
It can be concluded that the well-known organization develops its business in domestic and
international countries and faces several complexities. In order to remove the complications, I
think the company has to follow several international laws with respect to developing the
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CASE STUDY ANALYSIS
business with respect to China and Mexico. In addition, the company has to follow the
domestic rules and regulations in case of removing the complexities in the US.
Reference
CMMS (2019). MACRA: MIPS & APMs - Centers for Medicare & Medicaid Services.
[online] Cms.gov. Available at: https://www.cms.gov/Medicare/Quality-Initiatives-Patient-
Assessment-Instruments/Value-Based-Programs/MACRA-MIPS-and-APMs/MACRA-
MIPS-and-APMs.html [Accessed 25 Sep. 2019].
Health and Human Services (2019). Privacy. [online] HHS.gov. Available
at: https://www.hhs.gov/hipaa/for-professionals/privacy/index.html [Accessed 26 Sep. 2019].
HHS (2019). HITECH Act Enforcement Interim Final Rule. [online] HHS.gov. Available
at: https://www.hhs.gov/hipaa/for-professionals/special-topics/hitech-act-enforcement-
interim-final-rule/index.html [Accessed 26 Sep. 2019].
Reporting, L. (2012). [online] Nyse.com. Available at:
https://www.nyse.com/publicdocs/nyse/regulation/nyse/sea34.pdf [Accessed 23 Sep. 2019]
SEC (2019). Registration Under the Securities Act of 1933 | Investor.gov. [online]
Investor.gov. Available at:
https://www.investor.gov/additional-resources/general-resources/glossary/registration-under-
securities-act-1933 [Accessed 24 Sep. 2019].
US Taxation (2019). US Taxation. [online] Rpi.edu. Available at:
https://www.rpi.edu/dept/advising/free_enterprise/us_government/taxation.htm [Accessed 21
Sep. 2019].
WIPO (2019). WIPOLex. [online] Wipolex.wipo.int. Available at:
https://wipolex.wipo.int/en/legislation/profile/US [Accessed 26 Sep. 2019].
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