This document provides details about the Cleveland Clinic, including its service concept, focus on customer involvement, employee management practices, operations design, sources of funding and support, past expansion efforts, future opportunities, and core competencies. The Clinic aims to provide high-quality, multi-specialty healthcare using medical expertise, innovative technology, clinical research, and education. It manages operations through specialty centers and teams, monitors outcomes, and employs strategies to engage customers and train/evaluate employees. The document discusses the Clinic's previous expansion to Florida, and potential future opportunities through partnerships with Canyon Ranch, opening a facility in Canada, or collaborating with projects in Abu Dhabi.

1. CLEVELAND CLINIC
CASE STUDY
YUAN FENG

2. CONTENT
 Service concept
 Customer involvement/management
 Employee management
 More operation design
 Support/funding
 Expansion
 In the future
 Core competencies
 Alternative analysis

3. SERVICE CONCEPT
 Professional healthcare & excellent service
 Multi-specialty care – comprehensive diagnosis
 Expertise
 High quality service
 Advanced med. tech
 Accessibility: Health Information Technology (HIT) & eCleveland Clinic
 Clinical research
 Patents
 Innovations (researches & innovation trips)
 Education
 Medical educational program: “clinical expertise/practice, scientific inquiry,
biomedical research”
 Teleconference room – distance learning. Dry lab. Exp. with advanced surgical
techs.

4. SERVICE CONCEPT
Patient’s Value
High quality healthcare 5
Expertise 5
Medical tech 5
High quality service 5
Medical Innovation 5
Accessibility/Convenience 4 (4 ranking
because doctors focus more on
quality than quantity, limited physical
locations and prediction of demands)
Location 3
Price low 1
1 5

5. CUSTOMER INV./MGMT
 Expertise
 Specialty Centers and Institutes: Focus on diseases rather than discipline.
 Clinically-Focused Teams: improve treatment processes.
 Care Teams: Improve efficiency / patient satisfaction“Faster recovery because of
innovations
 Advanced med. tech
 Promoting innovation!
 Outcomes Measurement: disclosure > improve quality / transparency
 Health Information Technology (HIT): EMR internal
 Staying ahead of the curve and anticipating market demands
 Accessibility
 eCleveland Clinic, MyChart, Dr.Connect, MyMonitoring >>> Customer Engagement
/ relationship with private physicians
 Quality & feedback: World Class Service initiative: 2003. Monthly reports on patient
satisfaction (collected from extensive patient surveys and presented as a series of color-
coded “shade reports”)

6. EMPLOYEE MGMT
 Human Resource Strategy:
 Training & Edu
 Evaluation
 World Class Service initiative
 Normative: WCS/Review/disclosure of outcomes data vs.
Carrots&Sticks – incentives & 1-yr contract
 Transparency: see the possibility of improving results through efforts
 Quality of Teams
 Care teams
 Clinically Focused Teams
 Prestige: career advance

7. OPERATION DESIGN
 “Patients First” mantra
 Innovation trips to unrelated industries.
 The Service of Healthcare
 Freedom from “The Paper World” (information
technology-driven strategy) > lower paperwork and
administrative costs
 The Quality Institute (quality control)

8. SUPPORT/FUNDING
 Non-profit (donations)
 Revenues 2005 $4 billion
 ~2,000 doctors and scientists. ~3,2000
other employees (IRS 990 Form)
 .6% Exe. Salaries / 40% other salaries and
wages.
 The clinic annually managed 53,000
patient admissions, 2.8 million visits,
~70,000 surgical cases.
 Calculations:
 1 Dr.= 26.5 patients/yr. (9 days/admission);
35 surgical cases/yr (1 case/wk)
Total Revenue
2005
4,298,370,497
100.0%
Total Exp. 3,991,483,982 92.9%
Exe. Salaries 28,601,369 0.7%
Other salaries
& wages
1,777,242,154
41.3%
Equipment
rental & mt.
97,274,260
2.3%
Travel 15,954,656 0.4%

9. EXPANSION
 1988, expansion to Florida
 Issues replicating the model
 distance of facilities: less collaboration
 rising competition
 health care costs rising
 misreading the market pg.11 - failed on market analysis
 negative ROI

10. IN THE FUTURE
 Alternatives:
 1. Canyon Ranch
 2. Cleveland Clinic Canada
 3. Abu Dhabi

11. C.C.’S CORE COMPETENCIES
 Quality HC & SVC
 Multi-specialty. Cross-Pollination/Collaboration
 Innovations (technology)
 Research
 Trips
 Medical Education
 Live broadcast of surgery
 Care-team
 Clinical-focused team

12. Canyon Ranch
 “wellness and lifestyle company”. Partnership 2006. “health as a quality of life.”
 “They knew all about exercise, weight control, diet, and healthy living; we knew all
about the other end of medicine. Together, we could provide the full continuum of
care.”
 Goal: wellness campus.
* Medical Education
* Research
combine data
* Potential increase of clientele
* Well heeled clients (premium!)
* Low cost of entry
* Lower severity index/op risk
* Confusion about brand info
* Org culture/value clash
* HR stretched for the exe.
Health program
Total Revenue ↑↑↑
Total Exp. →
Exe. Salaries →
Other salaries & wages →
Equipment rental & mt. →
Travel ↑ (slightly)
ROI Positive

13. Cleveland Clinic Canada
 Big market for high quality healthcare. 2005-lifted ban on private insurance in
Quebec. 2006 Alberta. >> CC formed CC Canada. Toronto Health and Wellness
Centre.
* Greater demand
* Existing committed Canadian patients
* Less competition for private healthcare
* Lower severity index/op risk
* Potential increase of clientele
* Lower HR cost.
* Political risks (future policy changes?)
* Questionable success of model replication –
quality control/culture replication
- Canadian <50% specialists. U.S. >70%
(Forbes.com) - how to hire enough good
specialists!
* Initial investment high > higher risk
* Privatized healthcare
* Exactly how many more ppl willing to pay for
the private care?
* Mgmt. need to dedicate to new market.
* Experienced doctors being transferred for
team building
Total Revenue ?
Total Exp. ↓
Exe. Salaries →
Other salaries & wages ↓ (NationalPost.com &
Gone South by Pink, G.
PhD, et. al)
Equipment rental & mt. ↑ (transportation)
Travel →
ROI Positive / ?

14. Abu Dhabi
 New “Louvre” — one of five museums planned for a multibillion-dollar
tourist development on Saadiyat Island, off Abu Dhabi — to open in 2012.
 Tourists! International market!
 N.Y.U. article implications: ensure quality/mgmt. // + other renowned
universities > higher quality HR resource in the future!
* Abundant Funding
* Symbol of innovation
* Long Term Commitment
- focus on service/healthcare, not
on ST fin. Performance
- know the market better
- culture cultivation
* Reach other emerging markets
* Hub for knowledge exchange
* Edu: renowned universities > higher
quality HR resource！
* Same quality of doctors?
* Questionable success of model
replication – quality control/culture
replication
* Culture Clash: Language, Live
broadcast/medical education
(article: louvre museum)
Total Revenue ↑↑↑
Total Exp. ABUNDANT
FUNDING!!!Exe. Salaries
Other salaries & wages
Equipment rental & mt. Enough time
to build up
competitive
advantages
Travel
ROI