MGOA
MGOA Case Preparation Summary Section 1, Group 1
Case Preparation Summary - MGOA
Short-Cycle Summary
Who: Dr. Harry Rubash; Dr. James Herndon
What: MGOA is experiencing severe financial problems. They had been running an annual financial deficit and endowment funds have been depleted. MGOA wants to develop a plan that allows for financial security. Why: Decreasing reimbursements from private and government insurance providers. Inefficiencies in
MGOA processes and pay structure. A portion of physicians do not provide any revenue.
When: In the case, the period is the end of fiscal year 1999 and a decision needs to be made for fiscal year 2000. Our summary has taken the 2000 data into consideration so that we can make recommendations for change.
Long-Cycle Summary
Issues:
Basic: MGOA had been running fiscal deficits and their projections continue to trend towards no real financial security. The MGOA executive team has implemented a new pay-for-performance plan, but the plan fails to align correctly with the department’s needed revenue, the need for continued world-class research, and the needs of the physicians.
Immediate: Dr. Rubash and Dr. Herndon must implement a plan that resolves the financial deficits the department has been running, while appropriately rewarding the doctors for both their time spent performing surgeries and publishing research.
Importance & Urgency: Action must be taken to increase monthly net cash flow. Without a more stable cash flow, other decisions about what the identity of the department is or how many surgeries are performed won’t matter, the department will be shutdown.
Case Data Analysis:
Cause: The overarching goals and requirements of MGOA have not been clearly defined.
Effect: MGOA staff split time between conducting and publishing research and performing revenue generating clinical work without an overall understanding of which is most beneficial.
Cause: The
Case Preparation Summary - MGOA
Short-Cycle Summary
Who: Dr. Harry Rubash; Dr. James Herndon
What: MGOA is experiencing severe financial problems. They had been running an annual financial deficit and endowment funds have been depleted. MGOA wants to develop a plan that allows for financial security. Why: Decreasing reimbursements from private and government insurance providers. Inefficiencies in
MGOA processes and pay structure. A portion of physicians do not provide any revenue.
When: In the case, the period is the end of fiscal year 1999 and a decision needs to be made for fiscal year 2000. Our summary has taken the 2000 data into consideration so that we can make recommendations for change.
Long-Cycle Summary
Issues:
Basic: MGOA had been running fiscal deficits and their projections continue to trend towards no real financial security. The MGOA executive team has implemented a new pay-for-performance plan, but the plan fails to align correctly with the department’s needed revenue, the need for continued world-class research, and the needs of the physicians.
Immediate: Dr. Rubash and Dr. Herndon must implement a plan that resolves the financial deficits the department has been running, while appropriately rewarding the doctors for both their time spent performing surgeries and publishing research.
Importance & Urgency: Action must be taken to increase monthly net cash flow. Without a more stable cash flow, other decisions about what the identity of the department is or how many surgeries are performed won’t matter, the department will be shutdown.
Case Data Analysis:
Cause: The overarching goals and requirements of MGOA have not been clearly defined.
Effect: MGOA staff split time between conducting and publishing research and performing revenue generating clinical work without an overall understanding of which is most beneficial.
Cause: The