Riverview Regional Medical Center Case Study
CASE STUDY
Riverview Regional Medical Center
Erica Dawkins
University of Texas at Arlington
Strategic Management for Health Care Organizations
HCAD 5390 Jeffrey E. McGee, PH.D
July 7, 2015 OVERVIEW
The Hospital Management Associates (HMA) acquired Riverview Medical Center (RRMC, a 281 bed for acute care in 2004. HMA reconstructed the facility turning it into a leading-edge, high quality of care health care organization. The facility is one of the primary employers in the area and provides job opportunities to approximately “700 individuals in the local area” (Richards & Slovensky, 2004). RRMC has encountered significant challenges against their competitors: Mountain View, Gadsden Regional and HealthSouth. One major challenge …show more content…
Eighty percent of patients at RRMC were Medicare or Blue Cross and the administration experienced much difficulty when it came to negotiating prices with Blue Cross due to monopoly”(Richards & Slovensky, 2004). In this market, buyers have high bargaining power because reimbursements rates are low. Because Medicare and Blue Cross held monopoly in these services area, negotiating prices remained extremely difficult for RRMC. The suppliers have lower bargaining power due to low Medicare reimbursements and difficulty negotiating prices with Blue …show more content…
Key employees and departments must comprehend that without a sustainable work culture, regardless of strategies and changes implemented, they will not be successful if they do not have the “buy in” of the internal stakeholders (employees). RRMC’s Physician Leadership Group is also significant in building relationships and maintaining open communication with internal stakeholders. It is important that they continue to engage internal stakeholders and ensure that they are on board with strategic planning and implementation strategies before significantly communicating things to the external stakeholders would. It is imperative that the upper management be transparent, share, and clarifies the significance of any organizational changes to its employees. There was a lack of understanding between RRMC upper management and employees, which resulted in resistance. Organizations must invest in forward communication, education and opportunities for them to voice concerns and inputs that will help the organization to be successful and maintain
Riverview Regional Medical Center
Erica Dawkins
University of Texas at Arlington
Strategic Management for Health Care Organizations
HCAD 5390 Jeffrey E. McGee, PH.D
July 7, 2015 OVERVIEW
The Hospital Management Associates (HMA) acquired Riverview Medical Center (RRMC, a 281 bed for acute care in 2004. HMA reconstructed the facility turning it into a leading-edge, high quality of care health care organization. The facility is one of the primary employers in the area and provides job opportunities to approximately “700 individuals in the local area” (Richards & Slovensky, 2004). RRMC has encountered significant challenges against their competitors: Mountain View, Gadsden Regional and HealthSouth. One major challenge …show more content…
Eighty percent of patients at RRMC were Medicare or Blue Cross and the administration experienced much difficulty when it came to negotiating prices with Blue Cross due to monopoly”(Richards & Slovensky, 2004). In this market, buyers have high bargaining power because reimbursements rates are low. Because Medicare and Blue Cross held monopoly in these services area, negotiating prices remained extremely difficult for RRMC. The suppliers have lower bargaining power due to low Medicare reimbursements and difficulty negotiating prices with Blue …show more content…
Key employees and departments must comprehend that without a sustainable work culture, regardless of strategies and changes implemented, they will not be successful if they do not have the “buy in” of the internal stakeholders (employees). RRMC’s Physician Leadership Group is also significant in building relationships and maintaining open communication with internal stakeholders. It is important that they continue to engage internal stakeholders and ensure that they are on board with strategic planning and implementation strategies before significantly communicating things to the external stakeholders would. It is imperative that the upper management be transparent, share, and clarifies the significance of any organizational changes to its employees. There was a lack of understanding between RRMC upper management and employees, which resulted in resistance. Organizations must invest in forward communication, education and opportunities for them to voice concerns and inputs that will help the organization to be successful and maintain