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Monroe Hospital Essay

950 words - 4 pages

Montgomery Hospital Statement of Major Issues: Management at Montgomery Hospital has recently recognized the need to redesign operations to survive in a rapidly changing health care environment. A critical issue facing Montgomery is its inability to expand existing facilities to meet ambulatory needs. The hospital is also faced with the uncertainties of it?s patient?s health care insurance coverage. A recent study suggested that alternative delivery systems such as HMO and PPO plans could increase to 50% by 1995.To strengthen the Hospital?s strategic position in the region, the new CEO, James Gainer, believes that the Hospital should concentrate on building alliances with physicians, other health care institutions and appropriate institutions outside of the health care industry. Only through partnerships and associations can the hospital control resources that are used to treat patients and achieve it?s new mission to serve the community through decentralized family care centers.To facilitate the goal of collaborating with external stakeholders, the hospital needs an information processing system that can combine information across functions and institutions. Data capture includes service usage, satisfaction and demographics. The current system is not capable of these functions nor can it link case mix and patient flow to cost accounting. In fact, useful marketing information such as patient satisfaction and needs is unavailable or is not fully understood.Alliances with other health care entities and shared patient information are key to reshaping Montgomery?s health care delivery system. Given the new direction of the hospital, the major issues of this case are how to manage external alliances and develop an Information System to support strategic goals within the next two years.History/Background of the Organization: Montgomery is a community hospital that provides basic health care services at it?s 488 bed facility. Under the leadership of CEO, Ed Thompson, the hospital experienced little growth with respect to number of bed or medical services offered. Any changes in services during his 17 year tenure were deemed consolidation or retrenchment techniques rather than a diversification or growth approach. However, the hospital remained fairly profitable under Thompson?s leadership and still retains a moderate cash reserve.Thompson had a ?wait and see? response toward external change. Only 25% of his time was allocated to monitoring events and solving problems related to the external environment. When Thompson was appointed as President of the Board of Directors in 1988, he stated that top management had become too provincial and to narrow to deal with the current instability within the health care industry. He acknowledged that change was needed for Montgomery Hospital to prosper.In June 1988, James Gainer was unanimously appointed CEO of Montgomery Hospital. Prior to working for the hospital for the four years, Gainer was employed by a national...

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