Performance Evaluation of Capio Healthcare - Case Study Example

Introduction Capio Healthcare UK is a subsidiary of Capio AB based on Sweden. It major operations are devoted on providing healthcare services across UK and the entire Europe. At present, the company has two neurological centres situated in Sawbridgeworth, Hertfordshire. The firm is currently working towards the expansion of healthcare services in UK. This venture has been the priority of the company with the increased demand for healthcare services involving neurology. The services offered by Capio ranges from simple neurological problems to situations that require surgeries. The vast services provided by the company consist of: brain injury, multiple sclerosis, stroke, tracheotomy, long-term ventilator support, genetic neurological condition, Parkinson's disease, motor neuron disease, and palliative care needs. The centres primarily function to provide top notch assistance in the recovery of patients. Capio emphasises on the provision of comfort and maximisation of individual capabilities. To further improve its services, the company promotes unlimited duration regarding the recovery period necessitated by the patients. As a private healthcare provider, Capio is operated through investments. It is, therefore, logical for the administration to seek for higher profits. Basically, survival in the industry requires sufficient profits to ensure that operations are maintained. Meanwhile, the nature of the company suggests that managers have to provide their share. In fact, the efforts of managers in determining the problems and providing efficient solutions will determine the success of Capio. Situational Assessment Although the company appears to have robust operations, there are several aspects that have to be analysed in the efforts to improve profitability. Indeed, strategies are required and plans are needed to set the firms in the right direction. Regularly, the clinical managers and finance executives gather to discuss profit enhancement schemes. Part of the meeting tackles the major concerns of the company specifically the detriment to high income. The highlights of the meeting detailed several alarming circumstances. Part of these is the rising cost in operating the centres. In this circumstance, the role of the manager is to appraise the situation and create possible measures to prevent and mitigate adverse effects. The manager has to constantly communicate with the different entities involved with the firm. Most instances suggest that problems have to be viewed holistically. This approach, however, appears to be limited as some concerns are better comprehended specifically. Overall, the manager has to ensure that the functions of the centre remain within the context of its existence while evolving to a profit driven section of the company (Davidmann, 1998). The manager is provided with several approaches to resolve the current demise. In particular, traditional methods appear to be effective boosting the revenues of the centre. Also, modern strategies are useful in increasing the profit of the centre (Blanchard, 1994). It has to be noted that the manager has to follow processes and procedures. In addition, cooperation derived from other entities of the company is a major boost in the profit maximisation initiatives. Primarily, the centre is concerned with the exceeding cost incurred because of the operations. The two major contributors to the increase are the staff cost and the medical consumable. Accordingly, the use of agency staff has increased the burden of the centre. In addition, medical consumables have increased by 64% compared with the figures registered during the previous year. Basically, these are problems that will adversely affect the outcome of the net profit. Increased costs both in materials and in labour are valuable reductions to the revenues obtained for the year. Other important aspects that were revealed as a result of an investigation involved procurement and stock management. Based on the results of the investigation, the procurement process is independent from the main company, which is operating in Sweden. Second, the management of inventory is poorly undertaken. The inquiry is important because the manager was able to determine the possible sources of unwarranted costs. Both revelations were bold indications that changes in the process have to be made to successfully free the centre from profit reducing expenses. Moreover, there were observations that the attitude of some managers was contrary to the goals of the company to b aggressive. It is important for the managers to set the tone in undertaking relevant initiatives McNamara, 1999). The employees have to be provided with better roles in the organisation. Optimism within the centre is necessary to pursue higher goals. Obtaining high profit rates also entail intangible considerations. It is expected that the roles of the managers will be challenged. (See Appendix A) Problem Solving Understandably, the manager needs to devise a plan that will sum up all the initiative that will tackle all issues previously raised. In some firms, identification of the problem goes along with the planning process. Although the problems have been identified, the manager needs to secure all details before moving to the next process (Pyzdek, 1995). Basically, the concept of project planning involves both short-term and long-term goals. After the problem has been identified, the project plan will commence with the definition of the project scope. This will be the actual start of the initiatives for the company. The scope of the project will directly affect the neurological centre of Capio UK. Basically, the project is expected to be minimal in terms of the publicity. The project, however, seeks to provide significant impact to the business and individuals involved. The project scope also covers the approaches that have to be manifested in doing the project. Given the concerns of the centre, the manager needs to provide measures that will specifically address the need to increase income and to manage the supplies more efficiently. It is important that the measures are easily understood. Before the action plan was framed, the manager met with the heads of other department to seek for inputs related to the project. The meetings were designed to provide guides in manifesting the projects. Indeed, the outcome of the meeting was helpful in several ways. The manager was provided with technical insights on the matters addressed. Also, the manager was provided with a better perspective on approaching the concerns (Koellner, 2002). The project details specifically illustrate the different measures manifested by the centre through the manager. First, collaborating with the line manager, it was agreed that new staff will hired and it will be based on the occupancy. It has to be noted that staff cost were only estimates and accurate measurement appear to be improbable. On the issue concerning medical consumables, services and products have to provide outcomes. This will definitely allow the accurate appraisal of cost and precise determination of benefits attributed to the medical consumables. Dealing with the wastage caused by supplies mismanagement requires the participation of the IT manager. The plan was to replace the old printers with new peripherals that provide better performance at lower cost. This will cover the two departments with the highest rate of printer ink consumption. On the technical side, the meeting with the clinical managers have resulted with the conception of several projects. Instead of the usual system that enables social further funding for the consumption of medical consumables, such cost will be directed to the primary care trust through prescription. The identified medical consumables include oxygen supply, wound management, and VAC pump. These are the specific plans that were expected to be undertaken by the centre. Within the process of manifestation, there are certain activities that have to be done. The manager has to ensure that all entities are functioning with efficiency. It is important that all results have to be documented. These outcomes will the basis for the assessment of the project and will determines the areas where improvements have to be made (see Appendix B). Outcomes Evidently, there are several results that were attributed to the measures undertaken by the centre. Specifically, changes were observed during the course in which the projects are being manifested. First, the effect on the cost after the staffs was changed are unrealisable in the short-term. The impact is expected to be felt once the hiring process has been completed. One major benefit gained from the project is the decrease in medical consumables. This has been reflected in the percentage of consumable compared with the total revenues. This breakthrough is expected to provide positive trends in the reducing costs. From June 2006 to August 2006, gradual decrease has been observed from the spending of medical consumables (see Appendix C). The goal of the project is to sustain these results and ensure that revenues increase and medical consumable expenses decrease. Also, the revenue of the centre increased through VAC pump dressing. In addition, it is expected that costs will be reduced because the new printers are already in use. Most important, PCT will handle the cost of oxygen provided to clients instead of Capio. Indeed, this proposal will significantly ease the burden of the company in paying for the oxygen. Aside from the visible outcomes, there were several intangible effects that improve the centre. Communication among managers has improved and interaction in the centre was provided with great importance. Also, the attitude of employees towards changes was imminent. Basically, the positive results that were realised have boosted the morale of the entire workforce in the centre. This is good because it will help in undertaking future projects. Also, there have been significant changes in the consumption of oxygen by the centre. The oxygen consumption in October nearly doubled the oxygen used in September. Although the oxygen consumed during November decreased, the number of days included in the count was less compared with the two previous months. The increase in the use of oxygen will become profitable in the long-run considering that the charges will soon be charged personally through private healthcare providers. It is also evident that the efficiency in using the oxygen was observed. This is reflected in the number of days required n November to overcome the consumption is September. Essentially, reducing the days of using oxygen minimises the direct cost and other overhead expenses. Individual Contribution Within the centre, the Clinical Manager is provided with sufficient capacity to address all prevailing issues. The Clinical Manager is the head of the group and responsible for the conception of projects suited for each concern. Basically, the clinical manager has identified the problems and has outlined some projects that will overturn the unpleasant results. The manager provided enough resourcefulness in searching for best approaches. This has been evident in the meeting conducted with department heads. Also, the Clinical Manager has hands on with the process. The success of the project also depends on the participation of other entities. Department Heads in particular have provided useful inputs to further improve the projects. The neurological service accountant has provided necessary figures needed to establish quantifiable targets. Moreover, the Line Manager participated in developing measures to reduce cost on medical consumables and staffs. Likewise, the IT head suggested measures in which the use of printer ink will become highly efficient. The cooperation was crucial in approving the proposal of changing printers. Other clinical managers also provided important contributions in improving the revenue generation of the centre. Consultations with line managers have developed the idea of charging some services directly to PCT. Furthermore, external stakeholders provided their share. Suppliers, specifically, have recognised the need to supply high performing materials. The overall contribution of these entities will indeed translate to substantial development. Demonstration of Behaviours Holistically, the manager succeeded in bringing changes in the firm. The organisation is traditional and has a structure that is practised in most bureaucracies (Frisby, 1997). The clinical manager, however, introduced a flexible organisation through the meetings conducted with different heads and managers. Although independence is a key attribute, each entity was able to partake in the project. Decision making was approached as a team and not on individual discretion. As a result, more inputs were added and the clinical manager was able to develop projects that were technically consulted. Perhaps the most important trait that the clinical manager demonstrated is the different breed of leadership skills. Basically, traditional leaders are authoritative and demanding. The clinical managers were different acted more of a member in the initial stages of the project. The conduct of meetings was important because it shaped the outcome of the project. It provided a perspective that the clinical manager is serious with the project. Also, members were motivated by the trust given by the clinical manager. The leadership was able to set the tone and boosted the morale of all members. Finally, the direct participation of the clinical manager was greatly required. In most instances, managers only direct instruction and provide feedbacks once results have been determined. This project, however, made the clinical manager an influence and a driver to success. Being part of the entire process allowed the clinical manager to immediately determine the lapses and improvements that are needed in the project. Benefits In assessing the benefits of the project, it is important to go beyond the figures that were obtained. The entire organisation thrives on success and is driven by accomplishments (Frisby, 1997). The project will become a major reference to the project to be conducted by the entire organisation. The initial success of the programmes devised by the neurological centre will motivate the whole organisation to do the same. Also, the entire company will see the possibility of using the same approaches used by the clinical manager such as the conduct of meeting and team activities. Also, the mood in the centre will considerably change. Attitudes of managers and staffs have changed because of the good results (Newstorm, 2002). Basically, this cost reduction schemes will eventually be channelled to other activities. The centre will recognised that cost saving measures is necessary to allow more efficiency and better quality. With the given resources, the workforce has to be creative in ensuring that top notch service is still provided. Such dedication will be recognised by the clients and it expected that customers will increase and will eventually increase the revenues of the centre. Aside from Capio and the Neurological Centre, individuals working for the centre will also be benefited. As mentioned, creativity will be necessitated in such challenge. Also, employees were provided with sufficient power to adequately perform their responsibilities. Individuals became more effective in delivering the services needed (Buhler, 1999). In addition, the staffs became more concerned with saving especially in activities that impact profits. References Blanchard, K. (1994). Manage. "The importance of being a manager." National Management Association. Buhler, P. (1999). Supervision. "The changing role of HR: Partnering with managers." Davidmann, M. (1998). "The role of Managers under different styles of management." Date retrieved: 10 October 2006, from: Frisby, M. (1997). Public Management. "The changing role of the manager: Developing skills for the future." Koellner, L. (2002). Boeing Space Cost Chapter. "The evolving role of managers and leaders." McNamara, G. (1999). Authenticity Consulting. "Knowing what a manager does." Newstorm, J. (2002). SAM Advance Management Journal" Making work fun: An important role for the managers." Pyzdek, T. (1995). The Handbook of Quality Management. "Organizations and their functions." Appendix A Job Description: Part 1: Job Profile Job Title: Clinical Manager Main Purpose of Job Line management of one of the nursing & care teams. Clinical (nursing & care) leadership to ensure the provision of high quality nursing & care services to meet individuals' needs, aspirations and wellbeing. Provide day to day (shift based) support, guidance and leadership to a team of nursing and care staff as required Assisting in the development of staff and services Position in the Organisation Reports to the Senior Clinical Manager. Part of the Centre HODS team (Heads of Departments). With support from Assistant Clinical Manager, line manages Registered Nurses, Clinical Support Assistants, Senior Care Assistants, Care Assistants Scope of Job, Dimensions and Limits of Authority Ensuring efficient and effective nursing and care services are provided within defined resources through staff team and direct involvement. Ensuring the provision of appropriate goods, services and equipment in the clinical area within defined resources. Contributing to the development, implementation and monitoring of appropriate systems, policies and procedures. Contributing to efficient and effective management of relevant budget areas as required. Assisting the centre manager and senior clinical manager in ensuring and monitoring service quality. Ensuring operations are consistent with Capio Values, legal Care Standards and best practice. Liaising with residents, relatives, visitors, other HODS, SMT and the internal and external multidisciplinary team. Participating in the Neuro clinical manager on call rota. Deputises for the Senior Clinical Manager as required. Appendix B Project Cycle Appendix C Read More