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Pages:
3 pages/≈825 words
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2 Sources
Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
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MS Word
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Topic:

Hospital's Response to Competition and Revenue Reductions

Essay Instructions:

Hospital’s Response to Competition and Revenue Reductions Background: Acme Hospital is a 400-bed, not-for-profit , stand-alone facility in the mid-west serving a largely suburban community, as well as a small, outlying rural population. There is one other hospital in the area, which has traditionally served as their principle competition. Until last year, they have been operating with a small excess revenue margin. However, recently several factors have converged to threaten the financial viability of this hospital. Most notably amongst them, they stand to lose a marginal amount of revenue for failure to meet all of the metrics under the Value Based Purchasing program of the Centers for Medicare and Medicaid Services (CMS). In addition, a recently opened surgi-center is beginning to compete directly with their operating room services, which has been a significant source of revenue for the hospital. To make matters worse, the new CMS reimbursement schedules will result in an additional 3-4% revenue reduction. The Case: At the urging of the Board of Trustees, the hospital’s senior leadership team, consisting of the Chief Executive Officer, Chief Financial Officer, Chief Operating Office and the Chief Nursing Officer have been urged to focus on two key points in their quarterly retreat. These issues are optimizing the hospital’s current competitive position in the marketplace and the impact of ongoing reimbursement reductions on their long-term success. As such, they seek to evaluate their options and devise a strategy(s) to address these two, and related issues. The desired end-product from the retreat will be a report, outlining senior leaderships’ response plan to these environmental threats and ensure long-term success. Recently, the hospital’s Board of Trustees has seemed to grow increasingly concerned about these issues and the financial solvency and viability of the hospital, and has asked senior leadership to present their plan to address these issues at their next Board meeting in three weeks. Questions: In your assigned review the case within the context of leadership style and competencies. Then using at least two outside sources, answer the following questions. 1) Though clearly inter-related, the roles of the hospital’s leadership team are different from one another. Describe the unique role of each officer in general, and their role in contributing to devising a solution to the problem at hand.

Essay Sample Content Preview:

The role of Leaders in dealing with the Competition in the Healthcare Sector
Name:
Institution:
Competition in the health care sector
The rising competition in the field of health care makes it necessary for the leadership in hospitals to take a keen interest on developing strategies to keep off the competition. To achieve this it is important for the companies to adjust to the modern business world. The leaders need to make a deliberate move to change the mission of the hospitals in terms of its services to include activities that may lead to an added advantage and exclude the actions that may make the health facility inefficient. The strategies adopted by the leadership in the health facilities must not only consider the present circumstances but the future of the hospital as well (Ghosh & Shejwal, 2006). There are various strategies that the healthcare facilities can adopt in order to reduce the rate of competition. One of these steps is joining hands with the competing health facilities. For instance, in the case of Acme Hospital, a move to collaborate with the local hospital would be profitable to the company as it may increase the marginal revenue of the facility thus enhancing its financial viability. However, the leadership of Acme Hospital is responsible for deciding the best strategic moves for the hospital as well as ensuring that they are implemented. The following is a review of the unique roles of the hospital leaders that may help it overcome competition.
The chief executive officer is among the primary leaders in the institution and he is responsible for ensuring that the activities carried out in the health care facility are in line with the short-term and long-term objectives of the hospital. One of the unique roles of the chief executive officer is the ability to change the culture of an institution through enhancing implementation of the activities that are necessary to steer the institution forward (Godiwalla & Godiwalla, 2015). He has the power to improve the facility’s culture by changing the managerial style to include a more democratic one. The officer may also enhance the morale of the employees by looking into their working conditions thus having a positive impact on the culture. To ensure an effective culture, the chief finance officer may encourage the nurses and the doctors to provide quality services so as to make the hospital more competent than the local facility.
The unique roles played by the chief finance officer at Acme Hospital may have a positive impact on its competitiveness. The work of the officers in hospitals is quite different and complex compared...
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