MGOA Dissertation






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Case Planning Summary -- MGOA

Short-Cycle Summary

Whom: Dr . Harry Rubash; Doctor James Herndon

What: MGOA is suffering from severe financial problems. They'd been running an annual financial deficit and endowment cash have been used up. MGOA desires to develop a program that allows intended for financial reliability.

Why: Reducing reimbursements from private and government insurance providers. Inefficiencies in MGOA processes and pay framework. A portion of physicians do not provide any kind of revenue. Once: In the case, the period is the end of monetary year 99 and a choice needs to be generated for fiscal 12 months 2000. Each of our summary provides taken the 2000 data into consideration to ensure that we can generate recommendations for modify.

Long-Cycle Synopsis


Simple: MGOA had been running monetary deficits and the projections always trend to no actual financial secureness. The MGOA executive team has integrated a new pay-for-performance plan, nevertheless the plan fails to align properly with the department's needed income, the need for extended world-class study, and the requirements of the physicians.

Immediate: Doctor Rubash and Dr . Herndon must implement a plan that resolves the financial failures the office has been working, while properly rewarding the doctors intended for both their very own time spent performing surgical procedures and publishing research.

Importance & Desperation: Action has to be taken to maximize monthly net cash flow. With no more stable cash flow, different decisions as to what the identity of the office is or how many surgeries will be performed won't matter, the department will be shutdown.

Case Data Analysis:

Cause: The overarching desired goals and requirements of MGOA have not been clearly defined. Effect: MGOA staff split time between conducting and publishing analysis and performing revenue creating clinical function without an total understanding of which is most beneficial. Cause: The pay-for-performance plan can be implemented.

Effect: Revenue producing surgeries increase by 323. However , income decrease via 6. 9% to 6. 1% and only $13, 000 in additional revenue is produced.

Cause: No change is done in the collection process.

Effect: Only 39% of costs are accumulated, severely marginalizing the earnings generated from the increase in surgeries performed, while full costs from the increase in surgeries continue to be incurred. Constraints and Options:


• The requirements to conduct research as well as performing clinical operate are not precise • There are a limited quantity of hours during the operate week • MGOA contains a limited range of centralized resources assigned when you use bill collection Opportunities:

• Assign more resources towards the collection of expenses, or put into action a new system for better payment traffic monitoring

• Set clear rules and targets for exploration and specialized medical assignments Quantitative and Qualitative Assessment:

Quantitative: Revenues, costs and profits, and collection percentages Qualitative: Physician thinking, habits and behaviors

Missing Information and Relevant Presumptions:

Missing Information:

• Coverage and types of procedures

• Grant revenues and revenues primarily based from the great will and accolades a healthcare facility gets from the research

• Will current research contribute to either the effectiveness of procedure performed or slice COGS Relevant Assumptions:

• Allocating even more resources upon collections can lead to a better returning on choices • COGS of the specialized medical procedures is fixed

• The hospital and MGOA desires to have a continual mix of research and medical work Alternate Analysis:

Option Generation:

1 ) Focus transform efforts around the collection of obligations from insurance agencies, instead of the pay-for-performance plan.

2 . Use pay-for-performance plan and expand the collections department to increase earnings collections.

3. Completely take away performance centered pay and salaries. Revamp the selections process to...



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