Case Study 7: Medical Center of Southern Indiana

In: Business and Management

Submitted By lsmith30
Words 412
Pages 2
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…...

Similar Documents

Southern Company Case Study

...Assignment 4: Southern Company—Case Study Author/Student: Antoine Jean “AJ” Garand Instructor/Professor: Dr. Marie-Line Germain, Ph.D. Course: Talent Management – HRM 532 Date: Sunday, February 26, 2012 Evaluate the effectiveness of the roles that the strategic leaders played in the formation of the performance management strategy. Silzer and Dowell (2010) define Talent Management as “ an integrated set of processes, programs, and cultural norms in an organization designed and implemented to attract, develop, deploy, and retain talent to achieve strategic objectives and meet future business needs” (p. 18). And lists the following as components necessary for a talent management program strategy: recruitment; selection; promotion; placement/assignment; on-boarding/assimilation; retention initiatives; rewards/recognition programs (other than compensation); training and professional development; coaching/mentoring; leadership development; performance management; career p Develop a five (5) point criteria for evaluating the effectiveness of the talent management strategy and how the data could be collected. Silzer and Dowell (2010) go on to state that after determining the talent requirements that are strategically important to the organization, the next step is to consider whether there is a sufficient internal talent to meet that short and long term business needs of the company, this could involve either making or building the needed talent from within...

Words: 1021 - Pages: 5

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...

Words: 412 - Pages: 2

Case Study : 7-3 Quality Metal Servce Center

...CASE STUDY : 7-3 QUAlLITY METAL SERVCE CENTER Q1. Is the capital investment proposal described in Exhibit 3 an attractive one for Quality Metal Service Center? Yes, the purpose of a company is to maximum the profit, and as Elizabeth Barret suggested,it can help company to make more profit. So the capital investment proposal described in Exhibit 3 is an attractive on for QMSC. Investment in machine $540,000 10 years cash inflow $286,000 PV of cash inflow $39,182 Payback period = 4.5 years  NPV= 286000 IRR= 2.8% Reasons for selection: * Positive cash flow * IRR> COC * Payback period is less than the standard Q 2: Should Ken Richards send that proposal to home office for approval? Ken need send this proposal to home office for approval, because this proposal is good for the company and can make a lot of profit for the company. And another reason is, capitalexpenditures in excess of $10,000 and all capital leasing decisions require corporate approval. Q 3: Comment on the general usefulness of ROA as the basis of evaluating district managers performance. Could this performance measure be made more effective? The Return on Assets (ROA) percentage shows how profitable a company's assets are ingenerating revenue.An indicator of how profitable a company is relative to its total assets.ROA gives an idea as to how efficient management is at using its assets to generate earnings. ROA can be computed as Net Income/ Total Assets.To make it more effective QMSC can...

Words: 1160 - Pages: 5

Rio Grande Medical Center: Case 3

...Case 3 Report 1. Background Rio Grande Medical Center is a full service not-for-profit acute care hospital with 325 beds. Most of the hospital’s facilities are devoted to inpatient care and emergency services, but a 100,000-square-foot section of the hospital is devoted to outpatient (OP) services. Of the 100,000-square-foot OP section, the OP Clinic uses 80%/80,000-square-feet, and the remaining 20%/20,000-square-feet are used by the Dialysis Center. Increased patient volume at the OP Clinic has created a need for 25% more space than it is currently assigned. Due to its large size and patients’ need to access other departments the decision has been made to move the Dialysis Center to another location, and allow the OP Clinic to utilize the now open space. Gaining the Dialysis Center’s 20,000-square-feet now gives the OP Clinic their additional 25% of space needed for expansion. The Chief Financial Officer (CFO) created a Profit and Liability (P&L) Statement for the expansion, in which he utilized a new indirect cost allocation scheme. In his new indirect cost allocation scheme the CFO used actual facilities cost instead of aggregated facilities cost, which has historically been utilized by the Medical Center. Also noteworthy, is the fact that the directors’ annual bonuses are now going to be based upon full costs instead of only direct costs, which has also been historically utilized by the Medical Center. After viewing the CFO’s P&L Statement with...

Words: 2116 - Pages: 9

The Case of Holy Medical Center

... hospital COO too harsh in discharging Mr. Hopkins? Given the ineffectiveness of Mr. Hopkins I don't believe that the COO was too harsh in discharging him as the manager. To begin with Mr. Hopkins was not the right man for the job. He was a hospital executive who did not have right background or experience to run this kind of medical practice. As manager, he could not relate to the physicians and their work. He was not fiscally "in touch" or fiscally responsible. Mr. Hopkins did not press the finance department for reports and failed to provide the physicians with the information on the financial status of their practice. As a result, it was later determined by the new manager, that the group had lost $92,400 in the eight months that Mr. Hopkins was the manager. Question 3 - Why couldn't the hospital's finance department produce timely reports for the clinic? I believe that the main reason that the finance department could not produce timely reports for the clinic because this was not an issue of priority or of great importance to the clinic manager. Mr. Hopkins was ineffective in working with the finance department. From review of the case study it appears that both Mr. Hopkins and the medical center president (Sister Margaret) had a pretty lax attitude towards financial matters related to the clinic. Because Mr. Hopkins did not align himself with the practice he has therefor failed to become involved in its daily operations including those related to its financial......

Words: 922 - Pages: 4

Case Study on Southern California Supermarket Strike

...Introduction A case study is a puzzle that has to be solved. The first thing to remember about writing a case study is that the case should have a problem for the readers to solve. The case should have enough information in it that readers can understand what the problem is and, after thinking about it and analyzing the information; the readers should be able to come up with a proposed solution. Writing an interesting case study is a bit like writing a detective story. You want to keep your readers very interested in the situation. In this case study we try discuss about Southern California Supermarket Strike. The Southern California Supermarket Strike of 2003-2004 was a strike among supermarket workers in Southern California. The walkout lasted for twenty weeks. In this case study, we try to discuss common issues related to the strike of Southern California Supermarket's staff. We are discussing various alternatives and solutions related with it. To prepare this case study we follow Goggle, Wikipedia and various article related with this situation. Overview Grocery clerks in Southern California are fairly well paid when compared to other grocery workers in the US. Their health benefits are not as good as the benefits of, say, most K12 teachers, but better than most other wage workers -- also true of their pensions. This gave the grocery workers what they themselves see as a middle-class income, whether that is in fact the case or not...

Words: 1766 - Pages: 8

Case 3 – Lakeview Medical Center

...Case 3 – Lakeview Medical Center 1.) Describe the method or methods you would use to determine priorities for both existing and potential services that the Lakeview Medical Center might offer. In order to determine which existing and potential services that Lakeview Medical Center (LMC) should offer, strategists must assess several key components of each service line to test its validity. LMC will conduct a “brainstorming” session outside of the work environment to encourage strategic thinking amongst the administrators. To begin with, these administrators need to decide whether or not each service at-hand aligns with the medical center’s mission. If the service does not further the organizational mission or purpose, then it should be considered for discontinuation. If the service does indeed align with LMC’s mission, it will be flagged as-so and be prompted for further investigation. After each service has been tested for mission alignment, the potential opportunity for market growth should be assessed. Is it possible that a particular service can expand our current market to make LMC more profitable? Not only expand the service area and market, but is it possible that certain services will be able to feed into other profitable areas within the network to make our patient’s experience more streamlined? An external analysis of the healthcare environment, key demographics of current and potential markets, and competitor analyses will be of great use at this stage. Our...

Words: 1094 - Pages: 5

Case Study Employee Benefits for Medical Center

...GEISINGER MEDICAL CENTER: AFFECTS OF THE MERGER ON EMPLOYEE BENEFITS Executive Summary I. Introduction The purpose of this case study is to evaluate the effectiveness of the changes in employee benefits as a result of the merger. II. Situation As of 17 January 1997 our HMO, the Geisinger Health System (GHS) merged with the former Penn State Milton S. Hershey Medical Center (HMC). Since then we have moved forward as Penn State Geisinger Health Systems. The merger brought together two long-standing giants in Pennsylvania health care. Both organizations were not-for-profits, shared a common institutional history, and were brought together to combine their strengths in an increasingly competitive managed health care environment. Penn State’s Hershey Medical Center (HMC) founded in 1963 and included Penn State’s College of Medicine, the University Hospital, and Children’s Hospital. HMC bring with it over 6,000 employees and handled 20,800 inpatients and 356,000 out patients during fiscal year 1995-1996. (Reeves 1999 p. 44). HMC added to our own Geisinger Health System, which served more than 2 million people in Pennsylvania and southern New York. The University hospital system joined our regional health system, which incorporated Geisinger Medical Center, Geisinger Wyoming Valley Medical Center, Maryworth treatment center, the Geisinger Clinic, and the Geisinger Health Plan our 200,000 member HMO. (Reeves 1999...

Words: 2177 - Pages: 9

Virginia Mason Medical Center Case Study

...Virginia Mason Medical Center Case study Question 1 How could TPS be used to solve the problems that Kaplan was facing at VMMC? VMMC was facing several critical issues when Kaplan assumed leadership of the organization: * High number of competitors in same geographic area * Lost substantial amount of money for the first time * Low morale among staff While Kaplan had implemented some changes to cut costs, he really needed to identify systematic ways to improve the quality of service and differentiate VMMC from its competitors. This is where TPS would prove valuable. Instead of being just another approach by management to create a more cost effective organization, TPS focuses on creating a culture of teamwork with the ultimate goal of delivering the highest quality service possible to the customer. And as a result of this focus on improvement, eventually costs are reduced. And lastly, TPS involves employees in the process and shifts the focus of management to the role of facilitator. Ideally these changes would undo some of the damage from past strategic innovations at VMMC and increase the staff morale. Why does TPS work at VMMC, while other similar approaches, i.e. TQM, have failed? The healthcare industry presents an interesting challenge: the relationship between the hospital and the physicians who work there. Historically the VMMC had a very difficult relationship with its physicians because they felt entitled to do what they wanted while it...

Words: 1869 - Pages: 8

Southern Care Hospital Case Study

...Southern Care Hospital Case Study Susan Lawyer MSPM 6102/ACCT 6691/ACMG 6691 Walden University March 8, 2015 Southern Care Hospital Case Study “It is the Project Manager's (PM’s) job to make sure that the project is properly planned, implemented, and completed” (Mantel, 2011). “The PM is responsible to the project team, to senior management, to the client, and to anyone else who may have a stake in the project's performance or outcomes” (Mantel, 2011) and manage any conflict which is likely to occur between any or all of these groups. The PM is a facilitator, supervisor, coach, time manager, budget manager, encourager and most of all the main communicator of the current state of the project. Pure project organization is typically used for large scale, expensive long term projects. Examples include the building of an airport, stadium or shopping mall. Pure projects require project participants to be away from their normal work, which becomes troublesome when working with part time project team members. In this case, the pure project organizational structure would not be an ideal fit and is therefore being eliminated from consideration. “Functionally organized projects are embedded in the functional group where the project will be used. This immediately corrects some of the problems associated with pure projects. First, the functional project has immediate, direct, and complete contact with the most important technologies it may need, and...

Words: 1053 - Pages: 5

Emamuel Medical Center

...13 CASE Emanuel Medical Center: Crisis in the Health Care Industry The Haley Eckman Story On Friday, four-year-old Haley Eckman stayed home from school because of a slight fever. She complained that she was feeling very tired. That night, Haley’s temperature increased to 104°F. At 3:15 A.M., Mr. and Mrs. Eckman took Haley to the emergency department (ED) of Emanuel Medical Center (EMC) in Turlock, California. They registered at the admissions desk and waited for someone to see them. After what seemed like forever to the Eckmans, a triage nurse came out to evaluate Haley. He asked several questions, but failed to take her temperature – a routine procedure in that situation. He then disappeared, leaving the Eckmans to wait yet again. While they waited, Haley vomited. She said she felt very weak. The family asked if Haley could lie down in a bed while they waited to see a doctor. A staff member told them that there were no available This case study was prepared by Randall Harris, Kevin Vogt, and Armand Gilinsky as a basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. © 2004 by Randall Harris, Kevin Vogt, and Armand Gilinsky. Used with permission from Randy Harris. both13.indd 670 11/11/08 12:04:27 PM MORE PROBLEMS THAN THE ED 671 beds, and that they would have to wait. The Eckmans saw several empty beds across the hall from where they sat as the staff member...

Words: 9304 - Pages: 38

Medical Center of Southern Indiana

...Case #1 Medical Center of Southern Indiana History The Medical Center of Southern Indiana was the brainchild of two community members in 1973, originally named North Clark Community Hospital (NCCH). Many years after the initial conception of the NCCH, and numerous positional changes throughout the corporate structure, “North Clark Community Hospital opened its doors in September 1976,” (Rakich, Longest, & Darr, 2010). Unfortunately, NCCH only experienced difficult times for the next nine years, daily loss of profit due to unoccupied treatment beds and unused facilities, and lack of competitive advantage in the market to aid in the marketing of the hospital to increase profits eventually lead to the sale of the hospital in 1985 for $15 million to Hospital Corporation of America (HCA). HCA began reorganizing and transforming the entire structure of the hospital, these changes provoked renowned community support, to which HCA sold the hospital six years later to the City of Charleston for a drastically lower price of $2 million, thus NCCH name was changed to the Medical Center of Southern Indiana (MCSI). Internal Strengths and Weaknesses MCSI has employed very intelligent staff members, this workforce has been maintained properly creating a very low employee turnover rate of 11%, which is one of MCSI’s internal strengths. The second internal strength would be MCSI’s management of finances. MCSI internal weaknesses consist of the history attached to the hospital and its...

Words: 629 - Pages: 3

Greenhill Community Center Case Study

...XXXXX XXXXXX Greenhill Community Center Case Study March 28, 2013 Introduction According to The Oxford Handbook of Public Management (Ferlie, et. all, 2005) nongovernmental organizations can face complex management dilemmas when dealing with growth. There are four key challenges that are faced: assessing performance, governance, sustainability and infrastructure support, and collaboration and cooperation. At Greenhill Community Center we see an organization that is looking to bring about change (and in particular growth). The board of trustees unanimously agrees on a promising young woman, Leslie, to help move them towards their goal. What they get is someone who does in fact grow the community center, but at the expense of the staff’s job satisfaction. Overview Leslie, a recent MBA graduate, found an executive director position at Greenhill Community Center. She started the position with “great enthusiasm” but quickly found many of the employees to be upset by the change in management and resistant to any changes she tried to implement. The staff was upset because they no longer felt included in the operations of the organization and felt at a distance with the trustees, while Leslie felt the trustees preferred to work exclusively with her position in order to complete business more quickly. At Leslie’s six-month review she showed the trustees a positive performance, noting that she had already raised $41,000 in grants and subsequently requested an 8...

Words: 1821 - Pages: 8

Case Study: Rivera Medical Center

...HAS 534 Case Study Riviera Medical Center Through the 1980’ and 1990’ Riviera Medical Center (RMC) become technological leader in the region. RMC had top of the line Cardiac, and Women and Children’s center. The whole workforce was highly trained. RMC was also at his top financial era. At that moment they had only one competitor in their region-Northern Valley Medial Center (NVMC). NVMC new approach was focusing on building base model medical group practice as groundwork to expand referral base. NVMC reinvested money in their new strategy plan instead updating and developing new facilities. While RMC strategy plan was focused on independent physicians attracted by the high tech authority provided by RMC. At that time RMC signed contract with Riviera County to acquire and close the old County Hospital, which stopped the county from selling the hospital to different investor, and the same time boost RMC’s census. Significant number of old County Hospital was uninsured and underinsured population, which created risk of changing demographics. Administration had concluded that the profit of additional volume would prevail demographics change over the next years. In this particular case, there is one major problem and all other problems seemed to have stemmed off this one. Unfortunately administration miscalculated profits and undervalued effects and pace of patient demographics changes. First immediate outcome of the contract was increase in number of emergency...

Words: 1889 - Pages: 8

Case 3: Big Bend's Medical Center

... building and then increase its facility costs. Assuming the Outpatient Clinic will serve the expected additional 25 percent of patients, they will still nearly generate a million more in revenue after the newly allocated indirect costs. This way of allocating indirect costs projects both the Dialysis Center and Outpatient Clinic will be in the black for profit. Also, both directors will have a chance to receive an end-of-the-year bonus. These change in allocation do not change the allocation of pharmaceutical supplies revenue or expenses because they should continue to be booked. This strategy is inclusive to show for all revenue and expenses that are associated with the Dialysis Center. These should be documented on them allocation regardless of the amount of revenue the pharmacy makes. Conclusion In conclusion, the allocation I chose to present meets the requirements of cost allocation: fairness and promote cost savings to the organization. Each department will continue to make a profit and their respective directors will have a chance to receive an end-of-year bonus. Also, the Outpatient Clinic and Dialysis Center are being allocated costs fairly depending on how each is moving forward. The Outpatient Clinic is expanding its area and utilizing of space while simultaneously forcing the Dialysis Clinic to move to a new facility that must be built. For this reason, the Outpatient Clinic will have its indirect costs increased, while the Dialysis Clinic will stay the same.......

Words: 1237 - Pages: 5