Case Study 7: Medical Center of Southern Indiana

Case Study 7: Medical Center of Southern Indiana

The Medical Center of Southern Indiana (MCSI), a 96-bed community hospital in Charlestown, Indiana, was an indirect victim of the merger tide during the late 1980s. After enduring very difficult times and going through multiple phases in its organization life cycle, MCSI is now considered to be the “pride of Charlestown” and is both financially and operationally stable.   MCSI is the largest employer in the area, significantly contributing to the steady growth and economic development of the community of Charlestown.
Kevin J. Miller, current President and CEO of the MCSI, stated that “1992 was a do or die year for the Medical Center of Southern Indiana”.   The immediate implementation of an aggressive expansion strategy was critical in the hospital’s success, producing an operating profit in the first year without having to resort to employee layoffs.   MCSI aggressively expanded services and consolidated the gains from the services that were currently in place, meeting the needs of patients, members of the healthcare team, as well as the community of Charlestown.  
I believe that all of their hard work has paid off, however, and MCSI should slow down its aggressive expansion strategy.   MCSI has made substantial expenditures to expand services and improve technology and it is now critical to focus on streamlining and optimizing how these services work.   It is very important for MCSI to reassess their present services and analyze any services associated with loses.   Reconstructing these services will not only enhance profits, but this profit gain could help improve other facilities in need at MCSI.
MCSI should continue with its fiscal orientation and focus on revenue enhancements instead of concentrating on cutting costs.   As evidence by the 1998 strategic plan and positive financial results, the MCSI is now able to divert some of their profits to investing in the optimization of its services and technology.   This will, in the long term, improve both efficiency...

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