The US Veterans Administration (VA) hospital in Phoenix awarded incentive payments to managers for increasing the efficiency
Question:
The US Veterans Administration (VA) hospital in Phoenix awarded incentive payments to managers for increasing the efficiency of hospital operations. One measure was the reduction of time spent in the waiting room, and this objective could be achieved by limiting the number of appointments per day. Unsurprisingly, veterans and their family members complained that the period between making an appointment and the appointment itself was growing. In many cases, veterans waited months before they could “go in” to see the doctor. Meanwhile, dozens died from their diseases; with shorter wait times, several deaths could have been prevented. Public attention to the VA hospital situation prompted investigations to determine the reasons for the long wait times. Reviews of hospital records showed that wait times for an appointment were approximately two weeks, except that the hospital created a waiting list to control the number of patients at any one time. Fewer appointments increased the likelihood that doctors were on schedule. Unfortunately, wait times have increased from two weeks to between 6 and 20 weeks.
Questions:
As a compensation professional, what would you do?
What factor(s) in this ethical dilemma might influence a person to make a less than ethical decision?
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey