Holy Medical Center Case Study

Claim

Defense of Claim (WHY)

Key Issues (diagnosis)

1. Difficulty accessing financial data from the finance department, thus unable to properly analyze productivity of the clinic.

There was a lack of cooperation from the financial department and thus, the manager could not properly asses how the business was doing.

2. Hospital did not analyze the six physician practices and the patient demographics well enough before creating the Holy Doctors Medical Group (HDMG).

The hospital did not do its due diligence before creating HDMG. Because the patient population is primarily senior citizens, they may rely primarily on specialists rather than Primary Care.

3. Lack of proper leadership within HDMG and lack of communication and resources between departments.

The hospital did not pick the correct manager to lead HDMG and its’ expansion.

DM’s goal(s)

1. How to attract the right type of patients and number of patients to create profitability.

HDMG’s patient population is primarily senior citizens, a majority of the patient’s seen have Medicare. Medicare pays less than normal insurance. HDMG needs to attract patients with payors that will make them profitable.

2. Create enough profitability in order for Holy Medical Center to get a return on their investment, thus allowing the hospital to win significant contracts with capitated plans.

HDMG ultimately needs to align their goals with Holy Medical Center.

DM’s options/ alternatives

1. Cut expenses in order to become profitable by either laying people off, including physicians that does not produce or alter patient mix to attract a more profitable patient.

Cutting expenses will allow HDMG to break-even and eventually become profitable.

2.  Attempt to increase physician involvement and continue to recruit in order to expand HDMG.

Expanding the amount of physicians will hopefully generate an increase in patients.

DM should (recommendations)

1. Reassess the physicians’ compensation plan and incentive toward financial goals that would make HDMG more profitable.

Changing the physician compensation plan to an incentivized model will make the physicians more involved and make them more concerned about how HDMG is doing financially.

2. Expand physician clinic days and optimize each schedule in order to create an efficient and profitable practice.

Expanding the physician clinic days will allow more patients to walk through the door. Also, by optimizing each physician’s clinic schedule, HDMG can get the correct number of patients and insurance type to become profitable.