WEEK 10 – OL620 – DISCUSSION 5
Week10 – OL620 – Discussions
Week10 – OL620 – Discussions
NorthShore Medical Center (NSMC) is a proprietary for-profit healthorganization that seeks to provide the best-specialized healthtreatment services. Consequently, the hospital hires qualified andexperienced staff to ensure that it offers the best quality ofservices (Healthcare, 2017). Additionally, in line with its desire tobe a center for specialized treatment, the hospital has invested inhighly specialized diagnostic equipment that enables the physiciansto diagnose the rarest of health conditions accurately and timely.
Asa for-profit institution, the hospital`s management is tasked withthe responsibility of ensuring that the investors receive a return ontheir investment. Hence, the profit motive is a major factor thatinfluences its operations. However, the hospital’s poor financialperformance has both affected the quality of its services. Moreover,this has left investors dealing with the reality that the hospitalmight have been a bad investment.
SituationAnalysis and Justification of Recommendations
Ananalysis of the organization’s operations and policies reveals poorperformance as one of the reasons for deviating from its corebusiness. NSMC core business was to offer specialized healthservices hence, it invested heavily in specialized staff anddiagnostic machines to achieve this vision. However, the reality isthat the hospital handles more non-specialist related health issues,which it is not only poorly equipped to handle but also lacks theright human resource composition.
Thus,the recommendation that the hospital sticks to providing qualitymedical services and enhancing broad sector specialization means thatthe organization’s primary focus will no longer be to serve a nichemarket. Instead, it will seek to meet the existing demand forconventional mass health services. The implementation of supportiveaction such as the purchase of equipment that diagnoses commonailments indicates the hospital’s change in business strategy.Indeed, the action is a clear sign that the organization seeks tomeet the immediate demand for non-specialist mass/common healthservices.
Secondly,the hospital operates inefficiently, thereby affecting the quality ofservices offered. This situation has influenced the facility’sreputation negatively as high-paying clients stay away from thehospital due to quality issues such as poor hygiene, long waitingtimes at the accident and emergency rooms, and inadequate staff. Theimpact of these problems has been poor reviews and low recommendationrates that deter high-net clients from seeking services at thefacility.
Consequently,the adoption and implementation of the recommendation to hireexperienced personnel to work in its ER will see the hospitalincrease its capacity and improve its ability to handle accidents andemergency situations. Moreover, the adherence to new laws will forceNMSC to improve the quality of healthcare services that it offers.These changes are anticipated to change the hospital’s negativepublicity and increase client referrals and repeat business.
Thirdly,being a for-profit institution, the management is expected todistribute earnings among stakeholders and ensure they pay taxes(Gandhi, 2012). Therefore, services at the facility have beenexpensive, but of low quality. This situation has deterred high-netclients from choosing NSMC as their preferred hospital. To addressthis issue, the facility should adopt the cream skimming pricingstrategy. Cheng (2015) notes that under cream skimming strategies thepurchasing power influences the quality of service that a clientreceives. This move will enable the hospital to re-attract high-netclients by offering them quality and personalized services that meettheir quality and price expectations.
Tosum up, the recommendations offered herein are a direct response tothe issues that NSMC faces. By implementing these suggestions, it isexpected that the organization will spring back to profitability andits brand reputation will improve. Most importantly, it will achieveits principle mission to offer the best medical care. However, themission to improve on the area of specialization has to be sacrificedat the altar of profitability.
Cheng,T. C. (2015). Cream skimming and hospital transfers in a mixedpublic-private system. SocialScience & Medicine, 132,156-164.
Gandhi,S. O. (2012). Differences between non-profit and for-profit hospices:Patient selection and quality. Internationaljournal of health care finance and economics,12(2),107-127.
Healthcare.(2017). NorthShore Medical Center Miami, FLRetrieved fromhttp://health.usnews.com/best-hospitals/area/fl/north-shore-medical-center-6390615