BOSTON CHILDREN’S HOSPITAL: MEASURING PATIENT COSTS Case Solution & Answer

BOSTON CHILDREN’S HOSPITAL: MEASURING PATIENT COSTS Case Solution

This will likely supplement the value and performance of the organization in terms of returns and margins at the local as well as national and international level. The success of the management of the company in capitalizing on these opportunities for the organization will also certainly increase the understanding of the business in terms of costs and expenses of the business. Some of the most prominent opportunities for the management of the company are illustrated below.

• Competitive advantage.
• Targeting the market more aggressively.
• Generating greater value for the operations of the organization.

THREATS:

There are several issues and challenges within the present organizational culture and approaches that have been developed and adopted by the management of the company. It is very critical for the management of the company to analyze these threats of the organization comprehensively and completely in order to tackle and eliminate them.

Addressing these issues of the existing policies and strategies is very critical for the well being and smooth functioning of the organization because they are a significant threat to the very existence of the entity. Some of the most critical issues and challenges of the management of the organization are illustrated below.

• Threat of rivals and competitors in the industry.
• Ineffective costing of the business might lead the organization towards losses or out of business if the costs and prices of services of the hospital become too high for the market.
• Might lead to decision of compromised quality of services which is against the standards of the hospital.

PEST ANALYSIS:

POLITICAL:

The organization majorly operates in the various cities and regions of the U.S. which is a highly democratic and stable country in terms of political environment. The governance of the country is also quite impressive with no political and civil unrest in the country. This gives a chance of smooth functioning and operations of various corporate entities in the regions and markets of the country.

The threat of terrorism still haunts and looms over the country however; such incident are very rare and minute in strength due to the tight and effective security measures and counter-terrorism laws of the government of the country.

The healthcare industry is highly influenced and regulated by the department of health of the country and due to this reasons the standards of services delivered to the patient are quite high.

ECONOMIC:

Although the economy of the country is in a very good shape with impressive growth rates however, the country is still looming under the effects of the recession that had struck the country twice in the past. The unemployment rates are significantly high in the country than what they were historically and due to this reason, more segment of the population of the country is increasingly dependent upon the government assistance programs and aid.

Due to this reason, the management of the organization have failed to aggressively penetrate the markets to the full potential of the organization because the costing principles and approaches of the business are quite ineffective in terms of determining the cost of the services to the customers or patients and the costs of the processes of the organization. This leads to higher prices being quoted to the patients by the organization.

SOCIAL:

Although the unemployment rate in the country is high than it was before, however the society and population of the country are witnessing improvement in development and growth in the country and this is also having a positive influence on the social lives of the population of the country.

The assistance programs of the federal and state governments of the country along with the increasing income levels of the employed individuals are a positive step for the society itself and the social dimension of the environment of the country. All of the above factors have contributed to the better living standards and improved purchasing power of the population of the country. ……………….

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