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Peking University People’s Hospital: An IT-Led Upgrading in the New Healthcare Reform Case Solution & Answer

This Case is about LEADERSHIP

PUBLICATION DATE: December 12, 2013 PRODUCT #: TU0052-PDF-ENG

Peking University People's Hospital An IT-Led Upgrading in the New Healthcare Reform case solution

No standard operating procedure had been created to lay down the degree of action anticipated from the quantity of resources, as well as each responsible individual or selection units in reaching that degree of action a responsible party should use.

No proper management control systems were installed to gather, process, analyse bookkeeping (especially price-related) advice and offer timely comments to the direction. Due to this, real prices substantially surpassed budget. Loopholes in the system coming from control and free tracking gave rise to serious agency problems. To turn the specific situation around, WANG Shan established an IT-directed control reform. Yearly sales and profits improved substantially.

Operational efficiency and direction was also considerably improved. This case is designed to show how an institutionally sophisticated organization (especially hospitals) can beat institutional challenges as well as update control with an IT-oriented strategy.

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