The main key issues in case #5 is that the MMG system had not achieved its overall financial performance goals; therefore they experienced a big loss secondly the transition of new leadership became an issue. The difficulties of implementing the MBS business model in the Hospitals and Clinics division also became a very important issue. Having to come up with a strategy to improve the financial side and being able to focus on customers and relationships was not an easy task for them. Hospitals had a different approach of helping customers in the community.
Case #20- Emergency Care Group The key issues in the case is that the ECG’s owner which is John Woods charged the assistant Vice President, Steve Morgan to develop a sales and marketing plan that would sustain growth over the next several years. Another Key issue was, having to find enough emergency physicians to staff all the new contracts. The Vice president had altered the plan to take advantage of the positive marketing momentum in two states, which were Wisconsin and Illinois. Situational Analysis: Case #5.
External: The external environmental analysis in case #5 would be the Merge with Midwest Health and Health System Corporation, how they as one to serve the community. The move to the MBS model allowed Midwest Health Plan leaders to simplify the organizational structure and develop products and pricing systems adapted to customer needs in each business division. Directional Strategies: The directional strategies were up to standard with the mission and vision because MHS is about serving and making health care affordable.
Value was not kept up in this case, because the hospitals and executive board members felt MMG was not following the strategy as planned. Service area Competitor: The Hospitals and board members in the Midwestern Health system visions were just to serve their community and make it affordable to the ones they serve. The goal was to serve and make things affordable for the community. Situational Analysis: Case #20 External environment: The Emergency department visits were increasing. The number of the actual emergency departments decreased from approximately 5,200 in 1990 to about 4,550 in 2003.
Also in the rural areas, it was more of a big problem because more individuals relied on emergency departments. The goal was to have over contracts over 100 facilities by a certain date. Service area competitors: Competitors tended to focus on larger, urban, and more profitable facilities, but had the ability to compete in rural markets if they chose to. It was recognized that independent providers of documentation, coding and billing services posed a secondary competitive threat. The key to success was that it consistently provided reliable services at a higher degree of quality and personal touch than its competitors did.
Directional: The directional strategy was to develop a three-year sales plan and new business analysis for existing and potential markets and/ or regions. Strategy Formulation In Case #5, Midwestern Health Systems were about their organization. Expanding the business was not a worry to them, but improving the well-being of the company was important. MMG tried and even succeed at times of reaching out to companies outside of Midwestern, when this took place it was their way of marketing.
MMG used the Market Business Segment model, this was to improve the well-being of the company as well assist with the company “organizational structure and develop products/pricing systems tailored to customers’ needs in each business segment. ” The model ensures integration of the company and release tensions among different areas within the company. In addition, MMG developed goals and objectives for the organization to strive to the top potential that the organization would like to reach as a part of their strategies. In Case #20, Emergency Care Group was about expanding their business.
Dr. Woods, the owner of ECG, put Steve Morgan in charge of making a sales/marketing plan to expand the business. Adaptive and market strategies were put together to come up with a plan. Product life cycle came into play with ECG. Introductory stage was when the leaders decided to introduce the services and products to their current and potential clients. ECG wanted to have one on one connection with the clients. When the client actually signs, the contract and they start receiving their service that was part of the growth stage. ECG wanted to keep their clients and gain more.
Steve looked at all his competitors and analyzed what they were bringing to their clients and how many clients they have. After investigating the facts, Steve saw that some of the clients felt under appreciative and sometimes abandon. All this was coming from ECG’s competitors. Some of the top regional competitors went after the large hospitals and forgot the smaller hospitals. They also offer continuing education for some the physicians. Steve and Dr. Woods realized that they had two sets of competitors, the emergency department staffing and independent providers.
The independent providers were companies that provided documentation and reimbursement. Some clients have direct contact with them and some look to the ED staffing to bring that along with the other services they have. The two case studies were different. Case # 5 was more about making sure the organization improvements. They used the Market Business Segment to bring in structure to the company. It was a lot of tension inside the company. Expanding the company was not a major priority to Midwestern Health System.
MMG tried to expand by getting into contracts with specialist to come into the company but that did not make the executive members of the MHS happy. Case # 20 wanted to expand their business that ECG was about growth. They could see their future of being successful, but they knew they could and wanted to do better. Investigating/researching the competitors was the strategy that ECG used to go bring growth to their company. Once you learn the pro and cons of the competitors, one takes that and makes improvements in your company. Recommendation One of the suggestions was for MMG (Lief Erickson) to follow what the plan said at all times.
Try to see if one strategy works and then implement another strategy after the success of the other strategies. The leaders of MHS would develop a strategy and then implement another strategy before the other strategy could have some effect. MMG wanted to be included in meetings, because they felt like they were being left out. MHS brought in a company named, Deloitte & Touche to conduct a study on MMG to check their performance and finances. In addition, there was a discussion about selling MMG, because things seem to be getting worse having them around.
Steve Morgan decided that they needed to build a rapport with current and potential clients. ECG needs to be available at all times and provide high quality service to the clients. Therefore, they customized the contracts, benefit services, and enhance the documentation and reimbursement. Customizing contracts made it more personal for the hospital needs. So if the hospital needs more doctors on the weekend, the ECG will make sure that is exactly what they received. ECG makes sure all credentialing, recruiting, etc are correct and up to date. Value-added services let the hospital give the ECG a peer review.
This was to let ECG know in what area or areas they can improve. They used Continuous Quality Improvements Programs for the peer review. In addition, another value-added service was a free on-site education and training related to emergency medicine. This was to provide comprehensive education to the emergency and primary care physicians as well the hospital personnel. ECG did not want to do business over the phone they wanted the face-to-face contact with the clients. The value added services build a working relationship and made clients want to pay more for their services.
ECG was aware of the ED’s having problems with being paid for their services. ECG decided to provided support and counseling to their clients and ensure them that a process would come about that would enhance quality of care, customer patient satisfaction, and peer-review process. ECGdoc is a product that came from a Colorado-based company “template documentation system to record the emergency department patient encounter. ” This includes quality improvement in documentation, patient care, proper coding, and enhanced reimbursement. There were many different little strategies to make MHS a better company to service customers.
They just did not wait to see if they would actual work. Then with ECG, they had three things that they would implement and see the results come from them. They were very well thought of plans. Implementation Strategies Case #5: In this case, implementation of strategies was made several ways through this organization. These strategies were developing to set them apart from the competition. MMG designed new patient education programs to improve patient care. These education programs to improve patient care. These education programs were products of the MMG’s initiative to improve the “quality of care of addressing patient needs”.
In addition, MMG leaders “established a Council of Evidence-Based Medicine to set priorities”. This council is to ensure that the programs/clinics are fully evaluated properly. The clinic, as a whole, plays a part in the implementation strategies. Another strategy formed for Midwestern was the Greater Midwest Strategy. This strategy was designed to “address the needs of rural areas of Minnesota”. This strategy can cause more referrals for Midwestern from the various clinics of the rural areas and begin forming relationships between local hospitals and the Midwestern agencies.
This method was a way for the multi-specialty clinics could refer patients from other clinics within the system to their facilities. In addition, MMG would apply more techniques to develop shared financial cost among the agencies. Case #20: In this case, many implementation strategies come into play within the Emergency Care Group (ECG). The Emergency Care Group takes components of the Competitive Strategy, especially the focus strategy. This particular area directs the focus of the organization to a particular area (in this case, it would be the emergency care department of rural area hospitals).
The value added services that the ECG applied to their consumers range from patient care to employees. One value added service for the ECG included their services to facilities without no separate billing or charges for the services provided through the group. Some of the services that the ECG provides are surrounding around on-site education and training to emergency medicine. In order to separate the Emergency Care Group from their competitors, the leaders of Emergency Care Group decided to have direct participation in emergency departments’ committees and medical staff. Dr.
Woods (CEO of the Emergency Care Group) would visit to customer’s location with team members. In addition, the group had a focus to work on enhancing working on relationship between affiliated facilities within the health care organizations. Benchmarks for Success Case #5: For the benchmark of success, the MMG Company used their break-even plan to formulate the success. This plan causes the company to practice that made sense for MMG from the “business perspective”. The break-even plan was structured to allow the MMG leaders to hire specialists, develop services, and carry out other strategies.
In addition, MMG conducted began benchmarks to evaluate the MBS units. The evaluation took a deeper look into the MMG’s performance levels. Along with the evaluation, the MMG leaders commissioned a group that would investigate the benefits of MMG while their experience of financial lost continue. Case #20: In this case, the benchmark of success would come from the development of three-year sales plan and new business analysis for existing and potential markets/regions. Emergency Care Group had a goal and outlook on the growth of the company.
The growth would continue to grow if the “sales and marketing efforts associated with physician staffing services were effective in attracting new clients”. In addition, ECG had a focus of developing a strategic plan to create an “intrapreneurial” (new enterprises within the corporation) venture, which would be directed toward the marketing documentation services. Reference Swayne, L. , Duncan, W. J, Ginter, P. (2008) Strategic Management of Health Care Organization. Pg 511-538 and Pg 817-836. Jossey-Bass (A Wiley Imprint), San Francisco, CA.