Strategy Formulation Case Instructions- Formulate a response to the case given b
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Question
Strategy Formulation Case
Instructions-Formulate a response to the case given below. Draw upon understanding gained from the module lectures and readings. Answers should be between 1-2 pages long.
Tewksbury Hospital was previously profitable but in recent years, with declining reimbursements and a dwindling urban patient base, this large hospital has been running solidly in the red. Mr. Johnson, the new CEO, is a business executive who was brought in recently from outside of the healthcare industry. Prior to taking his new position at Tewksbury, he spent years engineering turnarounds of poorly performing manufacturing companies. Johnson now aims to apply this expertise to Tewksbury. His perception is that for Tewksbury to become profitable, it must significantly lower costs and increase volume. He believes the hospital can increase volume by lowering prices, though not as much as it will be lowering costs. Johnson’s vision is that Tewksbury should become the lowest cost, and lowest priced, hospital option in the city. Consequently, with a view toward focusing on efficiency, he has instituted reviews of all staffing ratios, building and remodeling projects, and technology. He has been busy negotiating new supplier contracts to lower prices for the hospital, and he has been negotiating with insurance companies to allow Tewksbury to accept slightly lower reimbursements, in return for expected higher patient volumes as a preferred network provider. Johnson is also enticing local physicians to use clinic facilities associated with the hospital by offering them minor perks, in the hope that they will send their hospital patients to Tewksbury instead of elsewhere.
The problem for Tewksbury at the moment is that a huge debate has broken out in the midst of their long-planned strategic planning meetings. The previous CEO had a completely different vision for the hospital. In support of that vision, he convinced the CIO, Dr. Kimbel, to begin negotiating alliances with a variety of technology partners to make Tewksbury one of the most completely “wired” hospitals in the country. Before Johnson came on board, she had sketched out a plan for Tewksbury IS that involved completely new EHR, CPOE, pharmacy, and lab systems, a new radiology information system, a state of the art PACS, and tablet computers and smartphones for all physicians and nurses. In her plan, these systems would be completely interoperable, and, along with newly refurbished operating rooms, Tewksbury would become known as the technology leader in delivering state-of-the-art healthcare services. Dr. Kimbel, a much sought-after computer scientist, has been at Tewksbury only a few years, but she now has threatened to quit. Johnson wants nothing from IS but lower costs and greater capacity, which seems to run counter to Kimbel’s plans.
You are a consultant brought in as an objective specialist to help Tewksbury define a clear IT strategy. How should this strategic planning process move forward?
Explanation / Answer
1. Concentrate on the continuum of consideration.
One of the greatest changes happening in social insurance is the full-scale move far from charge for-administration and volume-based measures toward responsible consideration associations and quality-based measures. The clinics should take a gander at the whole continuum of consideration, the continuum of consideration doctor's facilities need to concentrate on incorporates the beginning confirmation, how administrations are given inside of that admission to make the most productive procedure for a snappy yet fitting release, a release to the proper post-intense setting and subsequent meet-ups with that release.
The healing centers can make it one stride further by cultivating more grounded, commonly valuable associations with doctors — particularly essential consideration doctors. Notwithstanding quality-and worth based standards, human services change is likewise focused on preventive consideration, overseeing endless diseases and keeping individuals sound before a clinic trek is required.
2. Outline models to diminish readmissions.
Healing facilities that realign their objectives toward the whole continuum of consideration can then concentrate on one of the more germane perspectives lessening readmissions. Readmissions contrarily affect a clinic's primary concern in a few routes, for example, the high expenses connected with them and investigation from private wellbeing guarantors and patients. The doctor's facilities and their doctors can successfully diminish their readmissions, for example, guaranteeing patients go to post-intense office visits routinely after release and general giving assets to individuals to guarantee they are making the best possible post-release strides.
3. Have a decent association with payors, and renegotiate oversaw consideration contracts.
While healing centers can't control the underpayments from Medicare, Medicaid and other administrative payors, they have a similarity of control more than one noteworthy outlet: business and manager based payors. Mr. Talbert says private protection bearers contain, by and large, 35 percent of a healing facility's income.
Primary at social insurance counseling firm Equation, clinics must set aside an ideal opportunity to comprehend existing contracts, benchmark oversaw consideration contracts against one another, behavior examination to realize what rate of the safety net provider's business originates from the healing center, routinely redesign stagnant and evergreen contracts and search for cut out circumstances. Healing centers and their oversaw care divisions must be arranged when renegotiating contracts, however in the meantime, a level of conscious dialog must exist something else, aftermaths will happen, prompting excessive times of no repayment and an advertising bad dream.
4. Oversee new administration lines to expand piece of the overall industry.
With regards to "making new surges of income" for healing centers, this most normally alludes to including new administration lines. Cumberland Medical Center in Crossville, concurs expanding piece of the pie through new administrations is the best approach to manage any diminishment in net installments.
Healing centers ought not only include any administration line — Hospitals need to lead research and take a gander at the demographics of their region to figure out which administration lines are required, what rivals in the range offer and what administrations stand to pick up the most referrals. .
Then again, if doctor's facilities need to end up or stay productive one year from now, they will need to screen their administration lines to check whether any are draining cash.
5. Control work costs with fastidious information gathering.
At most healing centers, more than 50 percent of costs are identified with work expenses or work related expenses, on the off chance that you can't control your work expenses, chipping away at whatever else practically gets to be irrelevant."
Each office shows up, goes over their separate staffing measurements and deals with their work on a dollar-per-understanding day level.
In the event that healing facilities don't deal with their work costs or have staff gatherings on their work rolls each day, then he says clinics ought to, at any rate, be information driven on this front on a bi-week after week, month to month, quarterly and yearly premise.
6. Diminish supply costs by working with merchants and doctors.
After work expenses, supply expenses are the second-biggest cash eater of a healing facility's working spending plan. VP of Health Options Worldwide, says doctor's facility pioneers can decrease supply costs through two principle courses: working with sellers to enhance contracts and urging doctors to settle on monetarily capable supply choices. "A doctor's facility ought not timid far from drawing nearer merchants for rebates," This may mitigate costs on the buy item, and I would say, most sellers are willing to arrange if the volume of item takes into consideration it." Additionally, drawing nearer doctors and cooperating to make a more cost-cognizant supply get ready for each office can cultivate a superior working association with doctors notwithstanding supply reserve funds.
7. Enhance inadequacies in the crisis room and working room. Numerous doctor's facilities consider their ERs and ORs to be two of the most critical regions of a healing center on the grounds that they speak to a customary "cash failure" and a conventional "cash victor."
ERs ranges are imperative to any group wellbeing framework, yet healing centers have been confronting developing quantities of uninsured patients strolling into their ERs. This is prompting high measures of uncompensated consideration. Be that as it may, there are ways doctor's facilities can decrease the vast expenses and weights connected with the ER and its high volume of uncompensated consideration. The patients who come into the ER are qualified for some kind of publically supported system. He says clinics ought to make it a need to offer ER patients some assistance with completing applications for openly subsidized wellbeing scope like Medicaid. This could make patients additionally willing to look for preventive consideration as opposed to falling back on a minute ago, abundantly required and very costly ER treatment, and it will likewise specifically decrease a healing facility's uncompensated consideration and awful obligation.
8. Make populace wellbeing administration projects to accumulate wellbeing information investigation on perpetual ailments. The ACO model, or if nothing else its populace wellbeing accentuation, is moving healing facilities' reasoning of how to be gainful.
The clinics should make formal populace wellbeing administration programs through which the doctor's facility can connect and assemble wellbeing information investigation on its neighborhood patients as an approach to address potential wellbeing issues before they turn out to be unreasonable, ceaseless issues. "In the event that we are going to control expenses of social insurance and begin bowing the bend descending, we need to begin taking a gander at things from the point of view of populace wellbeing administration," he includes. In the event that doctor's facilities can see information and expense figures connected with constant illnesses —, for example, diabetes, cardiovascular infection, asthma, hypertension and others — they can contact their groups to begin perpetual consideration projects to relieve excessive, long haul wellbeing issues.
9. Think about outsourcing as some administrations. Outsourcing administrations at doctor's facilities is just the same old thing new, wiping out the authoritative caught and cultivating out capacities that are better taken care of on a self employed entity premise will straightforwardly bring about primary concern funds. Clothing administrations, housekeeping, sustenance administrations, office upkeep and some biomedical and clinical offices are ordinarily outsourced administrations. healing facility has likewise explored different avenues regarding outsourcing its attendant instruction. Mission Community Hospital would not have liked to end its medical caretaker instruction program, yet it additionally did not know whether it could keep on bringing about the program's working expenses. As of now, the outsourced organization has people that appear a few times each month to hold its nursing instructive classes. Medical attendants are as yet getting quality "skill," yet their costs have subsequent to been brought down.
A healing facility must be judicious when it chooses to outsource an administration, however, and it must have an emergency course of action if the proposition does not work out. "At whatever point you outsource an administration, you should be arranged to acquire it back case the relationship crumbles or if the outsider is not ready to give the level of administration we expected or foreseen,"
A few healing facilities have additionally started to outsource clinical administrations, for example, crisis room staffing and anesthesiology trying to end up more effective. Since these staffing gatherings utilize countless doctors, they may have the capacity to give more productive administrations, particularly in clinical regions that require day and night scope where the interest for administrations is high.
10. Redo the vitality cost technique. "Becoming environmentally viable" could be more than only a technique that emphatically affects nature and lessens dependence on fossil fills — it could likewise save money on a healing facility's main concern.
Center Health System says the clinic framework has been effectively patching up its supportability and vitality cost techniques, and it's directed to critical results. One of the bigger tasks includes the utilization of geothermal vitality at an one of the wellbeing framework's dialysis focuses under development. Different bits of gear gone through the ground and can concentrate warmth or cooling from the characteristic ground water, which is regularly around 45 to 50 degrees Fahrenheit. This extricated warming or cooling can be occupied to warm up the building in the winter and cool the building in the mid year.
11. Lessen using so as to staff expenses information to drive staffing choices.
Doctor's facilities pioneers can cosider the utilization of adaptable staffing, for example, low maintenance or hourly representatives, and conform staffing in view of patient statistics information. Pioneers ought to likewise screen the proficiency of this staffing by ceaselessly inspecting benchmarking information, for example, hours worked per case.
Wellbeing System, says that her office screens understanding volume once a day and modifies staffing appropriately. "We modify our nursing staffing at regular intervals in the wake of taking a gander at our inpatient volume .