Perpetual Mercy Hospital

Topics: Health insurance, Health care, Preferred provider organization Pages: 3 (784 words) Published: November 23, 2010
Perpetual mercy hospital|
Case Analysis|
Davenport University|
Prameela Dibba|


Problem Identification
With the creation of Downtown Health Clinic, Perpetual Mercy Hospital believed a bigger base for referrals and expansion would be on the horizon. The DHC was supposed to be a great project which would help Perpetual Mercy Hospital with its patient base. It would increase the amount of referrals, the amount of patients; opening up many more business opportunities. “This clinic is supposed to become self-supporting after three years of its opening (Perpetual Mercy Hospital, 2010).” Unfortunately, due to surprising news, this horizon may seem farfetched. According to the assistant administrator of DHC, a rival clinic is in the midst of opening up a new clinic within a short distance from DHC. It is expected that this competition will impact the emergency, worker’s compensation and employment or insurance physicals as well as on the existing and potential consumers of its services (Boone, 2006).

Different innovations and features of healthcare have been designed to give some freedom to patients to receive healthcare, as well as giving health care providers some freedom on where to practice. These different sectors make health care use business and marketing models to enhance their practices by attracting different patients and competing with other practices. One innovation includes the presence of HMOs and PPOs. Health maintenance organizations (HMOs) and preferred provider organizations (PPOs) are two types of preventive health programs. The HMOs are aimed at increasing preventive health care by providing medical services as needed for a fixed monthly charge reducing the lead time of hospital in patients and medical bills. PPOs create mutual legal relationships between health care providers and large employers’ organizations. These relationships offer subsidies for using preferred providers...

Bibliography: Boone, P. &. (2006). Contemporary Business, 11th Ed. New York: McGraw Hill.
Perpetual Mercy Hospital. (2010, 20 March). Retrieved November 10, 2010, from oppapers:
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