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Analysis Of Genesis And Its Impact On The Core Markets

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are downsizing slightly in the short-term really to allow us greater strategic focus in our core markets.” Per this statement, Genesis is starting to understand large scale ambition. Depending on how much or how little a company has of these attributes defines what stage a company is competing on. There are 5 stages; analytically impaired, localized analytics, analytical aspirations, analytical companies, and analytical competitors (Davenport & Harris, 2007). The above statement, and statement soon to follow, from the CEO indicate the company is headed towards a stage 2 or 3 competitor, but has been a stage 1 for a very long time. It is very easy to turn a blind eye on analytics if the main goal is to acquire as much geographic area as…show more content…
In respect to finance Genesis has used activity-based costing, however it was not done strategically. When reimbursement was focused on volume, Genesis allocated all their center based expenses and divided that by the total number of beds they had. This was done at the company wide level, making it impossible to evaluate which centers were profitable and which ones were losing money. For example, some centers had their own personal van to transport patients, and some used the contracted ambulance company. Say one center didn’t have a van and relied solely on the ambulance. The ambulance expenses rack up but because of how they allocated their expenses, they had no idea which center was using the ambulance service extensively. Genesis should have left all the expenses at the center level and then divided the expenses by the number of beds that specific center has. Then they could have evaluated if that specific center was profitable or not. If the center was not profitable they could analyze the information and in turn, make decisions on how to make it profitable. Now that reimbursement is focused on value, the allowed expenses should be pinpointed to a specific patient. This will be more complex due to how Genesis is reimbursed, but George Hager has noted this with interest. He stated “There 's no question as a provider, we need to
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