Hospital and Emergency Care Group

Topics: Hospital, Strategic management, Health care Pages: 7 (2081 words) Published: May 29, 2013
Case #5: Can This Relationship Be Saved?

Case #20: Emergency Care Group

Case Comparison of Case #5 and Case #20

Key Issues

Case #5- Can this Relationship be Saved?

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...
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