Hlth 6000 Integrated Studies in Health Administration - Memorial Hermann Case Study

HLTH 6000 Integrated Studies in Health Administration

Memorial Hermann – Executive Summary

Webster University

2016

Introduction-

Based on local rankings, Memorial Hermann is rated among the top five hospitals in Houston, Texas. It is also highly rated among the best specialist and children's hospitals nationally with high performing in three adult specialties. It boasts over 129 locations, 5,500 affiliated physicians, 24,000 employees and its Medical Center at TIRR is one of the nation's busiest Level I trauma centers and the primary teaching hospital for McGovern Medical School at UT Health.

Memorial Hermann's Competition-

 The Houston area is one of the most competitive concentrations in Texas in terms of medical services. Within the Houston area, MH is challenged by several competitors but the two top competitors are Houston Methodist Hospital, and Baylor St. Luke’s Medical Center. Memorial Hermann's competitive advantage is that they have one of the best acute care health system, rehabilitation and research hospitals which provides them with good and constant revenue and operating cash flow.

Memorial Hermann's main competitive disadvantage is that it operates with a fee-for-service payment system which is expensive and not viable in the current market. This disadvantage is shared and common to all health system in this area which makes it hard for any one of the health systems to dominate the market. In the Houston area, the threat of new entrants is very low because it will be very hard for new entrants to survive and thrive within the tight competition. This problem also affects the customers as it limits them to the current providers leaving them with the present options and choices.

Applicable Strategies-

        Memorial Hermann has a track record of success and great potential to improve and increase its current market position, there are still areas it is faced with several strategic challenges. Analyzing MH's current position and plans, it is evident that they are trying to grow and develop on their services and product life cycle.

Strategies that should be used are:

Internally developing their physicians to provide them with better knowledge and to help them provide better services, as well as adding new primary care physicians. Expanding case management to have competent specialists to maintain current programs and develop new ones as well as providing follow-up services with patients to prevent readmission and unneeded hospitalizations. Some of the challenges faced by Memorial Hermann are; Engaging in physician leadership development, adding primary care physicians, and extending case management patients.

Engaging in Physician Leadership Development-

        Over the years, MHMD has transformed from focusing on the financial aspect to moving it's focus more on trying to strengthen and improve the environment where providers become more accountable for their performance. This in turn results to a clinically integrated network which has led to offering all physicians within its independent practice association to become clinically integrated.

        However the new clinical program leads to several issues because the new association and program has requirements that must be met which may result in a mass exodus of the physicians from the program. This is majorly dependent on the poor communication among the physicians which can be amended if there is a better communication and feedback to show the benefits of this program. This will help the physicians understand and have a better value of the program and help them grow and develop a better leadership.