Free Case Study About Program
Lakeland Medical Center faces cost control problems while still maintaining higher revenues in an effort to increase the profits. According to the case scenario, despite an annual revenue growth of approximately 10%, the hospital still faces a daunting task in its cost control efforts. They have led to an accumulated date of approximately $55 million dollars. Both the hospital management and staff contribute either directly or indirectly to the cost control problem. The executive, in this case, the board of directors, has a biased opinion of medical personnel such as the cardiologist and the radiologists. The leadership management is also unable to map the institution’s objectives with capital investments clearly. Jealousy among the members also contributes to the lack of support for capital expenditure.
My role, in this case, is that of a consultant called in to offer advice on the way forward amidst the troubled organization. I am a proficient specialist with a wealth of experience having worked in one of the leading Medical Centers in USA for six years as a Project Manager. The advantage of my role is that I am in a position to clearly advise the executive on the way forward. The disadvantage, however, is that being an outsider in Lakewood Medical Center, I am likely to encounter resistance from different personnel in the organization.
The major problem in Lakeland Medical Center lies in Poor decision making in terms of cost control. The organization entangles itself in the ancient ways of doing things. Lack of proper planning and crucial decision-making in an organization’s expenditure could lead to its downfall. The secondary problem in this cease pertains to the lack of consultation and cooperation among the different groups of employees in Lakewood Medical Center. As a result, the management ends up making biased decisions regarding capital expenditure.
The organization has different strengths and weaknesses. One of the strengths is the fact that the institution is currently financially stable. Such is a huge factor as the interpretation is that, with proper decision-making processes and cooperation from the different members of staff, the organization has the capability of making huge profits. The organization also has a good reputation owing to the credible record of quality and satisfaction scores. However, there are also inadequacies such as disgruntled employees who oppose expenses in capital investment. Incapacity to make the right decisions is also another limiting factor. In the scenario, for instance, the leadership is unable to align capital projects with strategic goals of the organization.
Several alternatives exist that could easily rescue Lakewood Medical Center from its current woes. The most efficient way to remedy the problem is to introduce managed healthcare so as to control the cost effectively. Value-based purchasing and accountability of patients by the organization help to reduce costs. The development of outpatient centers is also another way of controlling costs. Care centers such as ambulatory and emergency centers significantly contribute to a reduction operating costs. As a result, there’s room for impressive returns by the organization. The executive management should also allow for the completion of the PACs. The project is already underway and leaving it halfway will be a loss to the organization. In addition, the organization stands to gain in terms of improved service delivery, reduction of medical liability, increase in revenue potential, etc.
The management should also establish ways through which to measure the success rate of the organization. Engagement of independent external auditors helps to pinpoint areas of weakness and also provides suggestions for improvement. Metrics such as service level agreements, profitability and, satisfaction levels for both patients and staff are good indicators of success.