SSM Health Care System provides health services to people across four states (Wisconsin, Illinois, Oklahoma, and Missouri). In some cases those people face difficulty are unable to afford medical services and rely on financial assistance from SSM and the federal government to cover costs. SSM, like many hospitals, rely on the federal government through the Medicaid system and the traditional fee for services reimbursement system in which healthcare providers are reimbursed for the cost of services they provide to patients that can’t afford them by Medicaid. Recently, the Affordable Care Act of 2010 was implemented with a stated goal to change the traditional system from fee-for-service to an outcome based system (Watson, 2014). Even as these issues are occurring SSM Health Care System is forced to deal with a serious issue concerning its long term ability to provide the same level of service to residents. Problem Statement
SSM Healthcare System, a non-profit healthcare provider, is concerned with taking care of the poor, but currently does not have adequate revenue to cover business expenses resulting in an operating loss. Audited financial data for SSM Healthcare revealed in 2013 revealed an operating revenue shortfall of over $74 million dollars (SSM, 2014). SSM Healthcare System is the second largest healthcare system by market share in the St. Louis, Missouri area and serious consequences of a continued loss of operating revenue could include reduction or elimination of services to that community or staff layoffs at some or all of SSM’s facilities. Manager’s at SSM Health Care are faced with a dilemma of how to reduce costs associated with collecting revenue and shortening the cycle of payment in order to reduce operating loss. From the above discussion, questions about if, in an effort to reduce its operating shortfall, SSM Healthcare decided to change how it collects payments for the services it delivers present an interesting opportunity for research. Design of the Study The design of our proposed study will include exploratory, descriptive and causal methods of research approach to look at the management problem from different perspectives. The details and data collected will be summarized under the detail of each section of our analysis before we make an overall conclusion of our study at the end.
Are people willing to pay for health services based on a sliding fee scale based on their ability to pay? This and a number of other questions will be coming as we explore ways within which to advise the Sisters of St. Marys’ on how to cut down their costs and increase their revenues. The above question will be our main hypothesis during this study but we will also test people’s attitudes about our proposals to see and make sure the Sisters of St. Marys’ and the people they server are still on the same expectations with each other.
Exploratory Research- In depth Interviews:
Even nonprofit charitable organizations are in business to make a profit. Just like regular ordinary c-corporations all businesses imperatively need their revenues to exceed their costs to stay in business. The only difference is nonprofits do not distribute or share their profits among the shareholders; they use them to keep on meeting their operating objectives. Sisters of St. Mary healthcare has increasing operating costs, diminishing operating revenues and a gaping deficit into the hole all businesses go as they cease or meet their demise. In the recent past there have been changes made to the way the government pays for services through Medicaid. The system has been implemented with more accountability. Doctors and hospitals are no longer just paid for services but for results. In the past when a service was performed, regardless of the quality of work the doctors and hospitals were paid. If the patient developed complications due to the negligence of the doctor’s service and...
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