Conflict Management
Conflict Management
Yamil Little
Strayer University
BUS520
Dr. Anthony Hughes
02/27/11
Conflict Management
Introduction In today’s ever-changing business environment organizations encounter varying levels of intrapersonal, interpersonal, intragroup, and intergroup conflicts. Intrapersonal conflict is a battle within oneself, which usually involves a life goal and/or change. Interpersonal conflict is when two or more people have opposing perspectives to a given situation. Intragroup conflict is when disagreements occur amongst some or all members of a group and ultimately affects productivity. Intergroup conflict is when disagreements occur between different teams or groups. The
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Occurring Conflicts
Mike Hammer, CEO of General Hospital, realized that there were many problems within the hospital. Without progressive action the hospital would soon face survivability issues and possibly lose its accreditation to practice medicine. Mike Hammer’s biggest challenge at General Hospital was to cut costs while increasing revenues so that promising current services added in areas that will allow General Hospital to compete with the medical center. In Hammer’s experience physician costs were a major factor in the inability of hospitals being able to regulate costs. He believed that physicians didn’t understand that their costs were directly connected to the viability of the hospital in which they worked. General Hospital’s failure to achieve effective cost control methods led Hammer to believe that physician-controlled costs had to be addressed, one physician at a time. The hiring of Marge Harding as the hospital’s chief operating officer and giving her unilateral authority to place contacts and fire employees enabled Mike Hammer to test his cost control theory. At General Hospital Dr. James Boyer, whose salary is roughly $100,000 a year, interpreted all EKG readings. Harding realizing that computerized EKG interpretations are the norm systematically signed a one-year contract on behalf of General Hospital with Health
If the hospital focuses on processes, people and resources, this can be achieved at the most cost-effective way as possible. Manatt (2013)
Surprisingly health administrators are often accountable for fabrication fiscal decisions that can impinge both their health care association and the caliber of management communicate. Also, it can be extremely demanding to equalize strive requisition, and it sometimes pits low-cost, quality, and ethics against each other. For
When talking about the United States healthcare system, it seems any conversation centers around cost. Whether it is corporations or employers talking about rising healthcare premiums that are out of control, to American families discussing getting less coverage for the amount of the premium they pay, or the soon to be retired person who wonders how they will make it with the high cost of Medicare premiums and prescription drugs. The challenge continues to be delivering world class healthcare at an affordable cost to all stakeholders. The cost of healthcare continues to impact the dominating delivery system of Managed Care here in the United States.
In the article “Ten Strategies To Lower Costs, Improve Quality, And Engage Patients: The View From Leading Health System CEOs” discusses the results following the implantation of strategies that aim to decrease the cost of care and increase its quality to satisfy both patients and health care organizations. The authors in order- as listed in article- are: Delos M. Cosgrove, Michael Fisher, Patricia Gabow, Gary Gottlieb, George C. Halvorson, Brent C. James, Gary S. Kaplan, Jonathan B. Perlin, Robert Petzel, Glenn D. Steele and John S. Toussaint. The authors are executives of several leading health care delivery institutions which include: Cleveland Clinic, Cincinnati Children’s Hospital Medical Center, Denver Health and Hospital Authority, Partners HealthCare, Kaiser Permanente (which is the
In the Harvard Business School case study of Intermountain Health Care (IHC), we learned about the efforts made by IHC to adopt a new strategy for managing health care delivery that is focused on improving care quality while simultaneously saving money. Beginning in 1986 as a series of experiments tying cost outcomes to traditional clinical trials, IHC’s approach to delivering care became known as “Clinical Integration” which “referred to both an organizational structure and a set of tools” (Bohmer, 2002). The organizational structure required a departure from the traditional administrative management model to one that “involved administrative and medical
The seven issues that the American Association of Medical Colleges (AAMC) prioritize are “costs, quality, safety, effectiveness, patient experience, and pricing” (The healthcare imperative; Pierre L. Young and LeighAnne Olsen, 2010). Healthcare facilities that can provide organization in addition to high performance of quality of health procedures provided, will receive financial incentives. Give the prior knowledge of the issues in our healthcare industry controlling the cost and effectiveness of healthcare will determine the health and prosperity of the nation and its people.
Hospital and physician arrangements are increasingly becoming a desirable integration model as health care organizations are restructuring their methods to care in the pay-for-performance environment. “Governmental and commercial pay for performance (“P4P”) programs indicate that compensating hospitals for quality care is becoming more common.” (Johnson, CFA,
In the ever-changing healthcare climate, it has become a necessity to make certain administrative, logistical and fiscal changes needed to maintain a successful medical organization in today’s healthcare environment. To the Hospital Corporation of America (HCA), it is of paramount importance that they provide a diverse range of healthcare services through the most cost-effective means available. Although, one of the largest health care services companies in the United States, HCA must take on the challenges of health care finance and reform through a strong and stable business strategy. In an attempt to combat the many challenges being faced, HCA has committed their resources by promising to establish a strong presence in the existing markets, maintain a high level of performance within the healthcare industry, recruit the necessary physicians to retain a leading level of productivity, strengthen their market position to increase profitability, as well as follow and build a successful, structured development strategy that can grow and prosper (HCA Holdings, Inc., 10-K, 2015).
In 1998, the Massachusetts General Orthopedic Associates (MGOA), a specialized unit within Massachusetts General Hospital (MGH), hired Dr. Harry Rubash and Dr. James Herndon, respectively, to help to remedy the annual financial deficits, which were “financed” by dipping into endowment and borrowings from MGH. These financial deficits have been continually getting into MGOA’s mission of providing high-quality patient care, research, and teaching (Barro 3). In the immediate months after accepting their positions of leadership, both Rubash and Herndon steered the hospital into the green turning a modest profit. However, it was clear that their new initiatives wouldn’t be viable for the long term. To do so, Rubash and Herndon proposed a new physician compensation plan. This plan included a development fund tax, a bonus, in addition to periodic adjustments to a base salary based on individual physician performance in regards to how profitable the physician was for MGOA. Initial physicians’ reaction to the proposed plan varied, however, if the case study was an indication, Rubash and Herndon were determined to implement their plan.
The role of payers in the health care industry has dramatically increased in the past few years and will continue to do so with the expanding cost of care. Hospitals are often under scrutiny because of the discrepancies found between the actual cost of care and what the insurance will reimburse the organization. Bruce Reuben, the president of the Florida Hospital Association, explains the multifaceted triangle considered by hospitals: “‘There's one party — the hospital who provides the service. There's a second party — the patient, who receives the service. And there's a third party — the insurance, who pays for the service’" (Mack, 2014). The greatest complex part of this triangle is the last which examines the insurance’s payment for service
One of the challenges I will face as a CEO is the result of reduction in payments from Medicare and the financial strain it will cause on my hospital. Providing quality care and remain financially strong in a system of fee for service (Weiss, 2010). We have payment systems which reward in units of work not for the care outcomes. We must provide increasing efficiency, care that is appropriate and using resources wisely all in the best interests of patients.
While some of these hospitals are making record numbers, others are barely making ends meet. This puts the Cleveland Clinic at a disadvantage because, while other systems are keeping cost down. This is due to the CEO’s vision of an expanded healthcare system. While this a wonderful
Universal Health Services is a hospital management company that is one of the largest in the country. The company has focused highly on its Acute Care Division and is looking for ways to increase profits in the ever changing landscape of health care. “It is headquartered in King of Prussia, Pennsylvania, and employed about 68,700 employees (of whom approximately 48,700 were full-time employees) as on December 31, 2014” (Universal SWOT, 2015). As CFO of this company I want to continue our great success and assess where we stand in the health care sector of the market. In order to make any determinations on what the financial statements are showing, one must look back at the previous years and what the competitors of our field are doing. I will be looking at two of our closer competitors in my analysis, Tenet Healthcare Corp, and HCA Holdings, Inc.
Concerning this, the hospital is still basing its past medical costs on the current Medicare reimbursement rates and these rates are locked in for a duration of time. Coincidentally, EHC drives 39% of its revenue from its Medicare patients. Also another factor is the growth in current liabilities, which has outpaced that of current assets, and lastly the unused equipment that is currently in patient’s rooms are not being billed. The strategy here is to tackle the cash flow problem since profitability is dropping.
Alongside these professional and academic changes, the financial systems that the entire operation is based on had to evolve as well. Initially, hospitals in the US were voluntary and supported mostly by wealthy donors and some paying patients. These hospitals were not intended to profit or show financial solvency beyond daily operation. This posed a significant lack of consistency in providing care since the most of the governing body consisted of affluent individuals. (book)