Medical Center And Its Impact On The Health Care Industry

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:

On paper, the merger between these two institutions made sense – both institutions were close to one another and competing for diminishing resources. Together they could reduce administrative costs and join forces to negotiate with large insurance companies. The need to create a new culture and dissolve historically existent power struggles were two large tasks that needed to be addressed in order to ensure a successful merger. However, the way in which the merger was organized did not lead to a successful merger. UCSF Health Care did not spend adequate time creating a shared culture in which the two organizations would see one joint organization with shared power (resources).

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.

hospitals that can better shoulder losses as part of an overall marketing strategy focused on access to care (Chain Drug Review, 2011).

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.

Defining and identifying an organization structure affects the organization in two big ways – it provides the foundation on which standard operating procedures and routines rest and it determines which individuals get to participate in which decision making process.

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

From a strategic perspective, in order to address its organizational needs, EMC stands a better chance if anchored to a larger, more financially and structurally sound medical entity through the option of a merger. Benefits would include gaining increased bargaining power, the improved ability to retain its best and brightest, a “longer reach” in attracting quality personnel from all around the state or the country at large and a better position from which to compete for customers.

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;

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.

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:

Unfortunately, a lot of things went wrong in the UCSF and Stanford merger which ultimately cost them tens of millions of dollars. For instance, they were projected to save almost $300 million by 2020, when in reality they lost almost $90 million in two years’ time. It didn’t help that reimbursement rates were down at the time and patients were starting to move to lower paying plans. One notable problem from the start was that USHC continued to hire and ended up with 1000 new employees. Additionally, the IT costs for the year 2000 were astronomical to say the least, and the merger expenses were double than what

In recent year the health care industry has seen broad changes that have impacted all health care stakeholders. Often, leaders in health care believe that external factors which affect the industry, such as local and federal policies, payers, cost of doing business, technology, health of the population etc, are so powerful and so far outside of their control that whatever strategy they employ, it will not be able to counterbalance these external forces and therefore will not generate new demand and create new markets. These leaders are stuck in what Chan and Mauborgne call mental models designed to negotiate existing market spaces, which prevent them from creating new markets. They spend their time fighting to keep their patients away from

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 a formal relationship between management and the employees. It is a way to motivate the employees and get them to working. It is also away to get employees to follow the company goals, and work together as a team. To make an organization work they need to have an organized structure to be able to run the company. The mission