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in ation ? 1 CASE INTRO An organization managing hospitals has recently been experiencing gowing pains. it has contacted our firm to ask for help. For growing pains, we mean that the hospital group originally consisted of only one hospital, and then it acquired 3 other hospitals. Lately its profits are going down. The CEO of the main hospital has changed; currently it is a business experience with MBA, and before it was an MD doctor. There are not any other changes or events impacting the hospital group the we have to consider, and we can exclude issues from the external market. PROGLEM STATEMENT What should the hospital group do to address these growing pains? What should they do to review the revenue of the hospital and the acquired hospitals? As a consultant, you need to work within 48 hours to compe up with proposal and action for clear problem definition, and systematic framework to promote for the required service to achieve the organization requirements. As you might need some additional information, you may refer to the next section fadditional information) and the case exhibits section, which might be belpful. Unfortunately, the organization will not be able to provide any additional information on this context. ADDITIONAL INFORMATION - The acquisitions didn't lead to profitibilly decline. - The main hospital is experiencing profit decline. - There is not a major change in the costs. - As the main source of revenue; the hospital treats patients and thereafter collects payments from the insurance companies based on the service provided. - The volume of patients remains unchanged. - Product mix of the hospital (surgeries, consultations,-) remains unchanged. - The patients can be categorized into the following categories: - Private insurance Covered Patients. - Public Insurance Covered Patients. - No Insurance Covered Patients (Urually homeless people). - Payments from private insurance is greater than public insurance. - The hospital has an outsourcing billing service which does not market to the physicians. It is uniknown, whether this is a viable service for the physicians. - We need to review the cost of the billing service to the physicians and the economics of the physician's office. If physician outsources the biling to the hospital, then what benefit does it derivce? - Here is some financial info: Cost of the billing service: $40,000 - Physician Annual Profit: $180,000 Revenue of an average physician: $450,000 2 - Physician time-allocation: 75% on patient care, 10% on billing, 15% on administrative overhead. - All of the time saved on billing can be used to see more patients. Finally, you are kindly requested to submit your proposal to help the group addressing the issue and promoting a proper action as consultant and to make sure that they are satisfied with the proposed solution, as well as the action plan within the agreed deadline. Please feel free to utilize all applicable tools and methodologies you believe it will help to analyze the case, as well as feel free to propose the solution in the way you think it will convince the client. End of the Case Study SUGGESTED STRUCTURE Diacram 1 - Case stralture PHYSICIANS' ATTITUDE TOWARDS HOSPITAL ISSUES BOTHERING PHYSICIANS 5 in ation ? 1 CASE INTRO An organization managing hospitals has recently been experiencing gowing pains. it has contacted our firm to ask for help. For growing pains, we mean that the hospital group originally consisted of only one hospital, and then it acquired 3 other hospitals. Lately its profits are going down. The CEO of the main hospital has changed; currently it is a business experience with MBA, and before it was an MD doctor. There are not any other changes or events impacting the hospital group the we have to consider, and we can exclude issues from the external market. PROGLEM STATEMENT What should the hospital group do to address these growing pains? What should they do to review the revenue of the hospital and the acquired hospitals? As a consultant, you need to work within 48 hours to compe up with proposal and action for clear problem definition, and systematic framework to promote for the required service to achieve the organization requirements. As you might need some additional information, you may refer to the next section fadditional information) and the case exhibits section, which might be belpful. Unfortunately, the organization will not be able to provide any additional information on this context. ADDITIONAL INFORMATION - The acquisitions didn't lead to profitibilly decline. - The main hospital is experiencing profit decline. - There is not a major change in the costs. - As the main source of revenue; the hospital treats patients and thereafter collects payments from the insurance companies based on the service provided. - The volume of patients remains unchanged. - Product mix of the hospital (surgeries, consultations,-) remains unchanged. - The patients can be categorized into the following categories: - Private insurance Covered Patients. - Public Insurance Covered Patients. - No Insurance Covered Patients (Urually homeless people). - Payments from private insurance is greater than public insurance. - The hospital has an outsourcing billing service which does not market to the physicians. It is uniknown, whether this is a viable service for the physicians. - We need to review the cost of the billing service to the physicians and the economics of the physician's office. If physician outsources the biling to the hospital, then what benefit does it derivce? - Here is some financial info: Cost of the billing service: $40,000 - Physician Annual Profit: $180,000 Revenue of an average physician: $450,000 2 - Physician time-allocation: 75% on patient care, 10% on billing, 15% on administrative overhead. - All of the time saved on billing can be used to see more patients. Finally, you are kindly requested to submit your proposal to help the group addressing the issue and promoting a proper action as consultant and to make sure that they are satisfied with the proposed solution, as well as the action plan within the agreed deadline. Please feel free to utilize all applicable tools and methodologies you believe it will help to analyze the case, as well as feel free to propose the solution in the way you think it will convince the client. End of the Case Study SUGGESTED STRUCTURE Diacram 1 - Case stralture PHYSICIANS' ATTITUDE TOWARDS HOSPITAL ISSUES BOTHERING PHYSICIANS 5