Ford Consulting	<br />Tufts New England Medical Center<br />Belinda Degboe, Shawn Dilmore, Caitlin Motley, Kara Vass<br />...
Overview<br />Internal and External Environment<br />Key Issues<br />Strategic Alternatives<br />Recommendation<br />Imple...
Current Strategy<br />Ellen Zane<br />3<br />
4<br />
Threats<br />Competition<br />Third Party Payers<br />Uninsured<br />Opportunities<br />Expansion<br />Name Recognition<br...
Weakness<br />Sale of Assets<br />Poor Margin<br />Strengths<br />Leadership<br />New England Quality Care Alliance (NEQCA...
Select Indicators<br />89.4<br />-54%<br />+16%<br />1.72<br />5.79<br />1.68<br />5.5<br />110.7<br />7<br />Mass.gov 200...
Mission<br />“We strive to heal, to comfort, to teach, to learn, and to seek the knowledge to promote health and prevent d...
Strategic Alternative 1:Suburban Expansion<br /><ul><li>Partner with New England Baptist for 190 Bed Expansion
500,000 square feet
$3,000,000 investment
Advantages
Provides care conveniently to patients in community
Opportunity for increased market share
Disadvantages
Other area hospitals planning suburban expansions, which increases competition
Requires a large capital investment</li></ul>9<br />Rowland 2006<br />
Strategic Alternative 2:Alignment with Tufts University<br /><ul><li>Strengthen the relationship with Tufts University
Standard meetings between marketing departments of NEMC and Tufts University
Strengthen brand to differentiate
Advantages
Leverage position in market with name recognition
Disadvantages
Loss of individual identity
Shared reputation
Difficult to quantify results
Cost</li></ul>10<br />
Strategic Alternative 3: Hospitalist Program<br /><ul><li>Begin a hospitalist program
Hire 2 full time and 2 part time hospitalists
$666,000 for salaries, benefits, and malpractice
Advantages
Improve efficiency
Upcoming SlideShare
Loading in...5
×

Graduate Case Presentation - Tufts NEMC

5,153

Published on

Slide deck I created for a group presentation on a graduate level case study based on conditions surrounding Tufts NEMC circa 2003.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
5,153
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
76
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • A combined approach of focusing on our clinical programs as well as our image will lead tufts into financial profitability.InnovationPatient Centered CareEfficiencyQuality Outcomes
  • Tout success of hospitalist program in mktg
  • Graduate Case Presentation - Tufts NEMC

    1. 1. Ford Consulting <br />Tufts New England Medical Center<br />Belinda Degboe, Shawn Dilmore, Caitlin Motley, Kara Vass<br />1<br />
    2. 2. Overview<br />Internal and External Environment<br />Key Issues<br />Strategic Alternatives<br />Recommendation<br />Implementation<br />Conclusion<br />2<br />
    3. 3. Current Strategy<br />Ellen Zane<br />3<br />
    4. 4. 4<br />
    5. 5. Threats<br />Competition<br />Third Party Payers<br />Uninsured<br />Opportunities<br />Expansion<br />Name Recognition<br />External Environment<br />5<br />
    6. 6. Weakness<br />Sale of Assets<br />Poor Margin<br />Strengths<br />Leadership<br />New England Quality Care Alliance (NEQCA)<br />Internal Characteristics<br />6<br />
    7. 7. Select Indicators<br />89.4<br />-54%<br />+16%<br />1.72<br />5.79<br />1.68<br />5.5<br />110.7<br />7<br />Mass.gov 2008<br />
    8. 8. Mission<br />“We strive to heal, to comfort, to teach, to learn, and to seek the knowledge to promote health and prevent disease. Our patients and their families are at the center of everything we do. We dedicate ourselves to furthering our rich tradition of health care innovation, leadership, charity and the highest standard of care and service to all in our community.”<br />Tufts New England Medical Center<br />8<br />
    9. 9. Strategic Alternative 1:Suburban Expansion<br /><ul><li>Partner with New England Baptist for 190 Bed Expansion
    10. 10. 500,000 square feet
    11. 11. $3,000,000 investment
    12. 12. Advantages
    13. 13. Provides care conveniently to patients in community
    14. 14. Opportunity for increased market share
    15. 15. Disadvantages
    16. 16. Other area hospitals planning suburban expansions, which increases competition
    17. 17. Requires a large capital investment</li></ul>9<br />Rowland 2006<br />
    18. 18. Strategic Alternative 2:Alignment with Tufts University<br /><ul><li>Strengthen the relationship with Tufts University
    19. 19. Standard meetings between marketing departments of NEMC and Tufts University
    20. 20. Strengthen brand to differentiate
    21. 21. Advantages
    22. 22. Leverage position in market with name recognition
    23. 23. Disadvantages
    24. 24. Loss of individual identity
    25. 25. Shared reputation
    26. 26. Difficult to quantify results
    27. 27. Cost</li></ul>10<br />
    28. 28. Strategic Alternative 3: Hospitalist Program<br /><ul><li>Begin a hospitalist program
    29. 29. Hire 2 full time and 2 part time hospitalists
    30. 30. $666,000 for salaries, benefits, and malpractice
    31. 31. Advantages
    32. 32. Improve efficiency
    33. 33. Improve quality
    34. 34. Cost savings
    35. 35. Incentive for PCPs and other academic physician staff
    36. 36. Disadvantages
    37. 37. Employment resistance
    38. 38. Resistance from current physician staff
    39. 39. Difficulty recruiting physicians for employed model</li></ul>11<br />Lurie and Wacher 1999. Tufts Medical Center 2008.<br />
    40. 40. Recommendation:Two Pronged Approach<br />12<br />
    41. 41. Hospitalists<br />1997 Study at Tufts<br />Reimbursement structures<br />Impact on patient care<br />Financial effects<br />Operating Margin<br />13<br />Gregory, Baigelman, and Wilson 2003.<br />
    42. 42. $1.62 million added profits<br />$185,000 plus benefits<br />$90,000 added profit per hospitalist<br />Hospitalist Impact<br />14<br />Gregory, Baigelman, and Wilson 2003. Laury and Wacher 1999. Merritt Hawkins 2005. <br />
    43. 43. Marketing<br />Current marketing efforts<br />Strengthen brand identity<br />Positive association with Tufts Medical School<br />Leverage marketing and differentiate<br />Annual Costs of $475,000 over 2 years<br />15<br />Anonymous 2009<br />
    44. 44. Implementation Plan<br />Responsible parties: Administration, NEMC and Tufts University Marketing & Public Relations Departments, Human Resources, Physician Board, NEQCA, & Quality Reporting<br />
    45. 45. Year 1: Base Year<br />
    46. 46. Year 2<br />
    47. 47. Year 3<br />
    48. 48. Year 4<br />
    49. 49. Year 5<br />
    50. 50. Communication<br />Communication Channels: town meetings, weekly staff meetings, physician board meetings, various media<br />22<br />
    51. 51. Conclusions<br />Alignment with values<br />Financial benefit<br />Competitive advantage<br />Risk<br />23<br />
    52. 52. Questions<br />24<br />
    53. 53. References<br />Tufts Medical Center Website (2010). Our mission. Retrieved February 20, 2010 from http://www.tuftsmedicalce<br /> nter.org/AboutUs/OurMission<br />  <br />Patrick, D., Murray, T., Bigby, J., & Auerbach, J. (2007). Regional Health Status Indicators Boston Massachusetts. The Commonwealth of Massachusetts Department of Public Health. Retrieved February 24, 2010 from http://www.mass.gov/?pageID=eohhs2searchlanding&sidEeohhs2&q=Regional+Health+Status+Indicators+Boston+Massachusetts&collectorName=EOHHSx<br /> <br />Pearson Education, Inc. (2008). Per Capita Personal Income by State. Retrieved February 23, 2010 from http://www.infoplease.com/ipa/A0104652.html<br /> <br />U.S. Department of Labor. (2006). Bureau of Labor Statistics: States with highest unemployment rates in 2005. Retrieved February 23, 2010 from http://www.bls.gov/opub/ted/2006/mar/wk1/art01.htm <br /> <br />Division of Health Care Finance and Policy (2005). Massachusetts Uncompensated Care Pool. Retrieved February 24, 2010 from http://www.umassmed.edu/uploadedFiles/ocp/MTF/12-01-05_ucp_101.pdf<br /> <br />Moseley, G. (2009). Managing Health Care Business Strategy.  Jones and Bartlett Publishers.  Sudbury, MA<br /> <br />Patrick, D., Murray, T., Bigby, J., & Iselin, S. (2008). Health Care in Massachusetts Key Indicators. Retrieved February 24, 2010 from http://www.mass.gov/?pageID=eohhs2searchlanding&sidEeohhs2&q=Regional+Health+<br />Status+Indicators+Boston+Massachusetts&collectorName=EOHHSx<br /> <br />National Conference of State Legislatures [NCSL]. (2010). Certificate of Need:  State Laws and Programs. State Certificate of Need Laws 2006.  Retrieved February 24, 2010 from http://www.ncsl.org/IssuesResearch/Health/<br />CONCertificateofNeedStateLaws/tabid/14373/Default.aspx<br /> <br />
    54. 54. References<br />Delmarva Foundation (2003) “Healthcare Quality Improvement and Organizational Culture” Retrieved February 23, 2010 from http://www.delmarvafoundation.org/newsAnd Publications/reports/documents/Organizational Culture.<br /> <br />Shortell, S.M., Kaluzny, A.D.(2006) ‘Health Care Management Organizational’ Design and Behavior (5thed) Thomas Delmore learning, 5 Maxwell Drive, Clifton Park, NY.<br /> <br />Nissan, J. (2007). NEMC, NEBH will build joint suburban facility. The Tufts Daily. Retrieved February 27, 2010 from http://www.tuftsdaily.com/2.5511/nemc-nebh-will-build-joint-suburban-facility-1.593827<br /> <br />Anonymous. (2006). Boston Teaching Hospitals Expand Reach into Surrounding Areas Prompting Concerns About Competition, Costs. Medical News Today. Retrieved February 21, 2010 from http://www.medicalnews<br /> today.com/articles/52798.php<br /> <br />Rowland, C. (2006). 2 Tufts affiliates plan hospital in suburbs.  Retrieved February 23, 2010 from  http://www.<br /> boston.com/yourlife/health/diseases/articles/2006/09/08/2_tufts_affiliates_plan_hospital_in_the_suburbs/<br /> <br />Mass.gov. (2005) FY05 filing based on hospital's audited financial statements. Mass.govpdf. Retrieved February 14, 2010. <br />MedPharma Partners, LLC. (2008). Impact of Tertiary Hospital Growth and Expansion. Massachusetts Medical Society. Retrieved on February 20, 2010 from http://www.massmed.org/AM/ Template.cfm?Section=Home6&<br /> TEMPLATE=/CM/ContentDisplay.cfm&CONTENTID=21922<br />MerrittHawkins(2005). Modern Healthcare Physician Compensation Review 2005 PDF. Retrieved from http://www.merritthawkins.com/pdf/2005_Modern_Healthcare_Physician_Compensation_Review.pdf<br /> <br />ECG (2009) “AMC Financial Arrangements and Affiliations” Retrieved February 20, 2010 from http://www. ecgmc.com/services/financial_arrangements.asp <br />Tuft University, School of medicine (2007) Retrieved on February 22, 2010 from http://www.tufts.edu/med<br />U.S. News and World Report (2007) Retrieved on February 22, 2010 from http://gradschools.usnews.rankings andreviews.com/best-graduate-schools/top-medicalschools/items/04048<br /> <br />Hamilton, M. Samuel, O. (2005) “Why have AMC’s Survived?” JAMA. 2005; 293:1495-1500. Retrieved February 22, 2010 from http://jama.amaassn.org/cgi/content/abstract/293/12/1495 <br /> <br />
    55. 55. References<br />Gregory, D., Baigelman, W., & Wilson, I. (2003). Hospital economics of the hospitalist. Health Services Research; 38(3): 905-918. Retrieved February 22, 2010 from http://www.ncbi.nlm.nih.gov/pmc/articles /PMC1360922/<br />Wachter, R. (1999). An Introduction to the Hospitalist Model. Annals of Internal Medicine; 130(4): 338-342. Retrieved February 20, 2010 from http://www.ncbi.nlm.nih.gov/pubmed/10068402<br /> <br />Hauer, K., Wachter, R., McCulloch, C., Woo, G., & Auerbach, A. (2004). Effects of hospitalist attending physicians on trainee satisfaction with teaching and with internal medicine rotations. Archives of Internal Medicine; 164(17): 1866-71. Retrieved February 21, 2010 from http://www.ncbi.nlm.nih.gov/pubmed/15451761<br />KruResearch. (2010). Social Media ROI for Hospitals and Health Marketers. Retrieved February 27, 2010 from <br /> http://blog.kruresearch.com/category/hospital-marketing/<br /> <br />Maguire, P. (2009). What's the ideal number of patients to see? Today's Hospitalist. Retrieved February 26, 2010 from http://www.todayshospitalist.com/index.php?b=articles_read&cnt=824<br /> <br />Tufts Medical Center. (2008). Tufts Medical Center Department of Medicine Annual Report 2008. Retrieved February 26, 2010 from http://www.tuftsmedicalcenter.org/ForHealthCareProfessionals/GraduateMedical Education/InternalMedicineResidency/DeptofMedicine/default/Tufts_Medical_Center_Dept_of_Medicine_2008_Annual_Report.pdf<br /> <br />Lurie, J. & Wachter, R. (1999). Hospitalist Staffing Requirements. Retrieved February 26, 2010 from http://www.ncbi.nlm.nih.gov/pubmed/10538261<br />
    56. 56. Appendix I: Exhibit of Major Systems<br />
    57. 57. Appendix II: 5 Year Pro Forma<br />
    58. 58. Appendix III: Key Financial Ratios<br />
    59. 59. Appendix IV: Key Demographic Factors<br />
    60. 60. Appendix V: Hospitalist to Patient Ratio & Salary Calculations<br />Hospitalist to Patient Ratio<br /> Average Daily Census =<br /> Annual admissions x LOS / 365= 17,000 x 5.79/365 = 269.67<br />Number of hospitalists =<br /> Average Daily Census / Patients per Hospitalist + 1 to cover night shift<br /> = 269.67/10 + (1) = 28 or<br /> =269.67/15 + (1) = 18 <br /> A low estimate of 10 patients per hospitalist is used to account for the extra manpower needed for coverage during vacations and other time off. The initial recommendation for Tufts-NEMC is to average 15 patients per hospitalist. As the program progresses, Tufts-NEMC can move toward a ratio of 1:10. Therefore, Tufts-NEMC would need 18 hospitalists to cover all admissions, however, the initial recommendation is to pilot this in the Department of Medicine, which has roughly 6000 inpatient admissions, and therefore, yields the need for 7 hospitalists.<br />Number of hospitalists =<br /> 6000 X 5.79/365 = 95.18<br /> = 95.18/10 +1 = 10.5<br /> = 95.18/15 + 1 = 7<br />Hospitalist Salary<br /> Industry research indicates the hospitalist salary at $185,000. With this as the base salary plus 20% for benefits, Tufts-NEMC will make the following investments:<br /> Year 2 – 3 hospitalist FTEs - $185,000 x 3 + ($185,000 x .20) x 3 = $666,000<br /> Year 3 – using same formula with 4 additional hospitals FTEs = $1.5 million<br /> Year 4-5 – if disseminated throughout organization, using same formula for 18 total hospitalist FTEs = $3.9 million<br /> <br />Data derived from xxiv, xxiii, xxv<br />
    1. A particular slide catching your eye?

      Clipping is a handy way to collect important slides you want to go back to later.

    ×