Hill Side HospitalPhysician Led Planning Part A The Ceo’s Dilemma Case Study Solution

Introduction

Hillside was found in 1930, which provides health care services as a non-profit hospital under the supervision of Trinitarians. Hillside provides its services within ten states by operating thirty-eight hospitals across the states. Hillside Hospital has thirty-five departments, which provides tertiary and secondary services. It provides health services for cardiovascular program, obstetrics emergency- a twenty-four-hour service, Level II nursery, bimolecular imaging scanner, an FAA heliport, breast care services,behavioral health, transplant services and a sight center service. In addition to this, it has made sponsorship with a hand surgery group and has succeeded in establishing a largest hand surgery service program within the state.

All the Trinitarians Hospitals were operated by Value Health Organization. The Value Health Organization was a joint venture between the Trinitarians and ProSantis. Value Health Organization was basically designed to provide financial and management services on a contract basis and was responsible for appointing the CEO’s for the individual hospitals. In March 2013, Bill Hurt was appointed by Value Health Organization as a CEO of Hillside Hospital. The demographics of the market conditions were changing with a wide margin, which yielded decreased market share and sales volume. The reason behind this decline was emerging startups, joint venture of physician with other organizations and newly started programs. Bill Hurt was dealing with all these issues. Bill Hurt conducted a meeting with his senior managers and with medical advisors to evaluate the potential issues and its possible immediate actions to be taken. The possible program had been suggested and discussed with the top management to know their reactions- especially with the CEO of Value Health, Alan Richardson. Alan Richardson was worried for losing his control.

Problem Statement

The CEO of Hillside Hospital, Bill Hurt, was worried about the changing market situation. The new startups were emerging, and a threat of competition was high along with decreasing sales volume and market share. Bill Hurt conducted a meeting with his senior managers as well as medical advisors to evaluate the potential issues and its possible immediate actions. Bill Hurt had to take prompted efficient strategic actions in order to minimize the pressure and threat of competition.

Key Competitive Threats

The following key competitive threats were experienced by the Hill Side hospital:

Increased Competition:

The hospital facedan increased competition from Valley Hospital, Lawndale and other twelve hospitals in the region. As a result of this increased competition, the market share of Hill side hospital decreased from 13.2% to 12.8%,in 2012. Moreover, the valley hospital secured a share of 17.7% of the hospital industry in the region.

Ineffective Management:

The primary care physicians of the hospital rarely visited the hospital, which resulted in decrease in the number of admissions at the hospital. Moreover, the physicians were less involved in medical staff activities at the hospital. It was analyzed that the physicians were dissatisfied with the leadership at the hospital, because of the lack of communication between the executive management and the physicians.

Lack of Capital spending:

The hospital had a lack of funds for capital spending, which restricted the business’s opportunities to grow. The lack of funding had restricted the business’s ability to achieve growth and maintain a leading position in the hospital industry. Moreover, several financial problems were being experienced as a result of failure of past investments in physician practices and managed care programs.

Decline in Volume:

As a result of an increased competition in the industry, the volume of outpatient admissions declined to 60% in the fiscal year 2012. In addition, the surgical cases were projected to be decreased by 11% between the financial years 2012 -2014. Moreover, the ED visits and inpatient admissions were also projected to be decreased by 19% in the year 2014.

Lack of Brand Awareness:

The hospital faced various issues, which included: traditional business models, outdated information technology system, aging medical staff, a lack of physicians, unclear strategies for operational growth and an aging physical plant. Moreover, the hospital failed to maintain a strong brand image in the industry as 53% of the total population of the industry were not aware of the hospital and failed to recognize the name of the hospital as per the market research conducted…………………….

 

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