Perpetual Mercy Hospital Case

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Perpetual Mercy Hospital Case Situation Analysis
The hospital industry has seen a dramatic change since the 1960s. Millions of dollars were poured into the industry causing a huge boom in independent hospitals and respectively a large boom in insurance coverage. Eventually the government had to step back in and reassess their role in health care. Here is what you need to know about the industry. Types of Health Care Programs: - HMOs are Health Maintenance Organizations that provide health care for a fixed monthly fee. - PPOs are Preferred Provider Organizations are usually offered through large employers where patients can more options and not be as restricted as an HMO. Ambulatory health care services are those that are used on an episodic or emergency basis. They are split into two categories. - Minor Emergency Centers such as FEC (Free-Standing Emergency Clinic) or MEC (Medical Emergency Clinics). - Clinics that focus on primary or episodic care (such as cuts, bruises, and minor surgery). Perpetual Mercy Hospital or PMH is a 600 bed, independently owned, not-for-profit general hospital. Here are some other key points about the company. - One in six general hospitals in the city. - Financially stronger than most metropolitan hospitals in the United States. - Debt free. - Highest occupancy rate amongst its six competitors. - Patient mix reflects unfavorable demographic shifts. When families began to move to the suburban areas, PMH realized that they were strongly dependent on inner-city residents who higher incidence of Medicare coverage. PMH found itself in need of privately insured, short stay patients in order to stay in good financial standing. Therefore they planned to open the Downtown Health Clinic (DHC), a n ambulatory facility in the downtown area close to ten blocks from PMH. Here are a few key points about the DHC.

- Opened May 1st of 1999.

- Open 260 a year Monday through Friday. - Hours of operation are 8 AM to 5 PM. - Specialize in six services...
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