WK2 Summative Assessment

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School

University of Phoenix *

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Course

506

Subject

Business

Date

Feb 20, 2024

Type

docx

Pages

6

Uploaded by renettalynn

Report
1 WK2 – Summative Assessment: Financial and Ethical Impact Analyst Summary Renetta Roland University of Phoenix MHA/506 Ricci Rizzo 06/12/2023
2 Financial and Ethical Impact Analysis East Chestnut Regional Health System (ECRHS) was formed by merging two hospitals, East River Medical Center and Archway Hospital, and the acquisition of a third hospital, Northern Mountain Medical Consortium. Mergers took place within the last 10 years. MHA/506 (University of Phoenix, 2021). Mr. Brown, the CEO, along with top management, have drafted a new strategic plan, with eleven strategic goals and a growth direction. The marketing department needs to know what is effective and address the rapidly moving strategic environment. The analysis that is being conducted will contribute to that objective. Mission and Objectives The organizational vision is to satisfy the community's people by providing the best possible care in the most effective way with services needed for the community. By merging these facilities that are now ECRHS will be able to go to the next level of care with its vision to build a new start of the art facility on a 100-acre piece of land that they purchased in the community. The mission is to take the leadership that ECRHS has developed, and they will be able to make all project decisions, set goals and be able to share the task through good communication and create teams to complete all tasks in a timely manner. This is the best way to complete all goals with strategic objectives. One of the objectives is to improve healthcare services for women, by improving this area of care, more women would start going to ECRHS. Over the next 3 years, the Obstetrical delivery will be extended by 20%, and with this information, more women will that their care is important and will feel more satisfied MHA/506 (University of Phoenix, 2021)
3 Organizational Structure and Culture The organizational structure of ECRH is moving away from a centralized structure. Having all managers involved in marketing decisions for ECRH business will all have a part in decision- making. Marketing strategies will be directly impacted as the marketing department is also included in making company decisions. Current Marketing Strategies ECRH is considered a for-profit organization, the profitably and the market has been decreasing and it is mainly because of its biggest competition, BMC. By opening a new facility across the street from BMC, will have more updated technology. It will open a new cardiac rehab center and adding a new addition to oncology will be more appealing to new patients. ECRH is a for-profit organization, hospitals within the healthcare industry operate to a typical profit margin. Marketing takes on a huge role in a ‘for-profit business. Marketing must create a revenue chart showing what the business module is and its profit = revenue – expenses. The inpatient payor mix for ECRH is 55% Medicare, 15% Medicaid, and 30% commercial (University of Phoenix, 2021). The goal is to fix this deteriorated inpatient pay mix. Current Financial Strategies A profitable organization is one that generates more money than it expends. Profitable organizations are businesses that use a variety of tactics to make a profit (What Is a Profitable Organization? 2021). Hospitals use operating margins to measure and track how much they spend on expenses – everything from doctors’ salaries to medical supplies – and then compare it to their revenue – the money that they receive from patients, insurance companies, and the government for delivering patient care. Operating margins can be used to benchmark
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