Tufts Medical Center had major problems when it comes to looking for ways as to how they could attract patients. Another problem which the organization faced with was the collapse of the merger agreement with the Boston Medical Center. It had certain ambitions to find partners for them to be able to compete with their more prestigious rivals. Despite having a strong following of doctors and patients, Tufts Medical Center was not a dominant player in the health care industry. Over the years, it has failed to build brand recognition unlike its rivals like Massachusetts General. By 2014, Tuft Medical Center executives decided that they would begin talking about a merger with the Boston Medical as they wanted to create a new health system. However, the negotiations broke down months later as the leaders from both the hospitals have discovered that they have a huge difference in culture and strategy. It was reported that Boston wanted to focus on their low-income patients but Tuft Medical had something more striving in mind. They wanted to expand their target patients, particularly patients who are in private insurance and they also want to attract patients across Eastern Massachusetts (McCluskey, 2015)
Organizational Structure & Systems The very first issue the organization has to address is their organizational structure and systems. The organizational structure is a very important factor for the decision making of the organization. Aside from its use for evaluating employee
In 1997 University of California, San Francisco (UCSF) merged its two public hospitals with Stanford’s two private hospitals. The two separate entities merged together to create a not-for-profit organization titled UCSF Stanford Health Care. The merger between the health systems at UCSF and Stanford seemed like a good idea due to the similar missions, proximity of institutions, increased financial pressure with cutbacks in Medicare reimbursements followed by a dramatic increase in managed care organizations. The first year UCSF Stanford Health Care produced a profit of $22 million, however three years later the health system had lost a total of $176 million (“UCSF-Stanford Merger,” n.d.). The first part of this paper will address reasons
In mid-April 2000, Sherri Worth was faced with some very unsettling news about Pate Memorial Clinic’s future with a competitor potentially moving into the area. Worth was the assistant administrator at Pate Memorial Hospital (PMH) and was also responsible for the Pate Health Clinic (PHC). A study by the competitor was being done to see whether sufficient demand existed to establish a clinic 5 blocks north of PHC. The two biggest concerns in regards to the new competition were:
Since most specialty procedures are inpatient services, EMC’s inpatient occupancy rate suffers. The occupancy rate for Emanuel Medical Center – fifty percent – is far below that of its competitors and industry benchmarks. To accompany this, EMC (on average) receives a lower reimbursement for in-patient Medicare services per patient seen in comparison to its competitors. A result such as this is correlated with directly to the fewer amount of specialty services that EMC offers. In order for Emanuel Medical Center to be able to compete with other hospitals in its service area, it is imperative that EMC evaluates what services they currently offer and are capable to offer in the future to add value to the hospital, increase its revenue stream, and expand its patient mix. Currently, Emanuel Medical Center has not succumbed to its increasing financial pressurealthough EMC has had a negative operating income for five straight years. A negative operating income places EMC at a disadvantage because it limits the hospitals ability to renovate its aging building or hire new specialists to offer revenue enhancing procedures. EMC’s competitors, on the other hand, have large sources of revenue due to their mergers with large healthcare networks such as Catholic Healthcare West. Another competitor, Kaiser Permanente Modesto Medical Center, has extremely large financial resources due to the fact
Mountain States Healthcare is a regional system of healthcare located in several large metropolitan areas of Colorado, Idaho, Utah and Wyoming. They were a single hospital in Salt Lake City, Utah who was quite successful and gainful due to the business knowledge and experience of its officers. They began purchasing other hospitals that were not as lucrative and ultimately changed their name to Utah Health Group (UHG). The facilities that they purchased were still allowed to operate as independent entities except that there name was to include United Health Group. UHG just instilled its own successful management style in the newly
This week’s case looks at the critical situation occurring at Riverview Regional Medical Center located in Etowah County, Alabama. The medical center, located near a strong competitor, is run by a veteran in the hospital management market, Mr Matt Hayes. Hayes is actively in the process of developing new ideas and revolutionary steps in an attempt to remain competitive in the market and regain profitability. The overall performance of Riverview Regional Medical Center appears to have decreased throughout multiple departments except outpatient surgical procedures, outpatient CT imagining, MRI imagining and inpatient MRI scans.
This paper strives to answer questions based on the case study “Emanuel Medical Center: Crisis in the Health Care Industry”. As excerpted directly from the case study, Mr. Robert Moen, Emanuel Medical Center (EMC) president and CEO, was experiencing a number of challenges in 2002. The medical center faced numerous challenges in its external and internal environment. First, EMC garnered an onslaught of negative attention for the “Haley Eckman incident” in which a young man, who happened to be a gang member, died within view of EMC’s Emergency Department (ED) medical personnel rendered no care and watched. The emergency department at EMC was also experiencing greater pressure to deliver services in an increasingly
hospitals that can better shoulder losses as part of an overall marketing strategy focused on access to care (Chain Drug Review, 2011).
Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. According to USA their structure states in order to provide clear alignment and focus for the planning process of USAA’s organizational structure, a planning team was assembled with strategic-thought leaders to author a strategic market outlook.
Middlefield hospital was once a great hospital that served a variety of patients with the best care. Over the past couple years Middlefield has been having some problem because of the new big hospital in the area. With this new hospital coming to the area Middlefield has been losing many of its patients and getting a lot more uninsured or under insured patients.
Some hospitals have merged with other healthcare organizations in hopes of providing a more integrated delivery system. However, delivery in many organizations is still quite fragmented leaving many US citizens dissatisfied. According to a 2011 survey conducted by the Commonwealth Fund;
The Stanford Health Services and UCSF medical center merger was projected to have a great turnout as it was supposed to be “enhanc[ing] the academic mission[s], strengthen[ing] referrals, and creat[ing] a more cost effective teaching hospital” (Sjoberg, 1999). The two competitors joined forces in hopes that it would alleviate the pressures of the new managed care systems by merging resources and acquiring more bargaining power. Stanford Medicine and UCSF came together at a time when many other academic health centers were looking to improve their negotiating powers with healthcare plans and physician groups. The merger offered hope to UCSF and Stanford by strengthening training programs and offering innovation plans as well as financial support.
Our group defined the success of the merger based on several outcomes. First of all, financial stability within the first two years of the merger; the formation of value-based payment models or other innovative payment structures which appeal to both payers and employers; low employee turnover, at or below the national benchmark; high employee engagement levels based on national benchmarks for the healthcare industry and finally the maintenance of accreditation. Once we defined success, we built out the following steps to work towards these outcomes.
In the 1900s and early 2000s, the United States started the integration movement to improve the efficiency and effectiveness of the health care delivery system. The integrations system was designed to introduce various strategies that healthcare organizations use to achieve the diversification in their services. However, these policies have helped the health care system to gain market share, become more diversified, reduce competition, and increase cost advantages by using existing operation to offer new products or services (Shi & Singh, 2015).
In all industries, competition among businesses has long been encouraged as a mechanism to increase value for patients. In other words, competition ensures the provision of better products and services to satisfy the needs of customers (Glover & Rivers, 2009). In the health care industry, competition has an impact on many relational perspectives. There have been several studies examining the relationships between competition and quality of health care, competition and health care system costs, and competition and patient satisfaction. Some elements of competition in health care are price, quality, convenience, and superior products and
Organizational Structure is necessary to run any company effectively and efficiently. There are six key elements that a company should be following for success and those elements are as follows: