Organization of a Health Care Facility - Research Paper Example

Organization of a Health Care Facility 1.0. Introduction Mergers and Acquisitions (M&A) are generally regarded as one of the significant facets of corporate strategy that supports different business organizations, whether profit or non-profit in maximizing their growth through enhanced resource availability and augmented risk mitigating capability (Sherman, 2010). This particular aspect is principally viewed as an incessant and dominant developmental policy for diverse organizations in the global arena. It has been apparently observed in this regard that organizations commonly decide to perform M&A with the intention of attaining greater profitability, enhancing productivity and most importantly, accomplishing superior competitive position over their chief business market competitors (McDonald, Coulthard & Lange, 2005). Contextually, it has been apparently observed that during the preceding few years, the hospital industry has also carried out numerous organizational transformations that include the introduction of pioneered technological advancements, improvements in infrastructures along with the widespread consolidation of hospitals through M&A (Project HOPE, 2013). In this modern day context, the rules associated with healthcare have been identified as changing due to the rising concern of preserving sustainable growth in future. In this similar context, the hospitals are paying much more attention towards the aspect of M&A with the purpose of upholding sustainable advancement in the upcoming years for the medical industry (HealthLeaders Media, 2013). In this paper, a detailed analysis about the advantages as well as the disadvantages of practicing M&A of hospitals will be taken into concern. Various aspects that include the feasibility of a profit or non-profit organizational status and a contract structure including different necessary clauses concerning the inclusion of medical staffs for offering quality healthcare facility, will be analyzed. Moreover, a suitable outline of a plan in order to appoint medical specialists for the clinic and justifying the decision to accept Medicare or Medicaid as potential pay sources for this exclusive clinic will also be depicted in the discussion henceforth. 2.0. Advantages and Disadvantages of M&A for hospitals Recent studies reveal that the perceptions considered regarding M&A have attained immense importance in this modern day context for different business organizations, whether profit or non-profit. It has been viewed that the organizations enthusiastically embraces this imperative idea with the objective of attaining their respective business targets. In this connection, the hospitals have also been observed to follow the approach of M&A in order to accomplish their expected business goals. It is worth mentioning in this context that the advantages of M&A for hospitals have often been noted in terms of enhanced service quality, increased financial advancement, improved employment of valuable resources and better response towards community requirements. Moreover, the other benefits of M&A for hospitals encompass effective cost savings, progression of human resources, superior harmonization of care, better synchronization of teaching as well as academic opportunities and diminished waiting lists of the patients which further tend to enhance patients’ satisfaction substantially. The two decisive factors that include the increased level of globalization and the altering market conditions has also been affirmed as major contributors in driving the success of M&A for hospitals in the present day scenario. Additionally, the prime objectives of the hospitals following the approach of M&A have further been identified as gaining greater market share as well as profitability, enhancing bargaining power with controlled care entities and lessening operational costs among others. The aspect of consolidation obtained through M&A further tend to support the hospitals in terms of sharing experiences as well as talents and most importantly mounting competencies through standardized products and/or services (Brousselle, Denis & Langley, n.d.). Apart from the aforementioned advantages, M&A of hospitals also comprise certain crucial disadvantages. Contextually, some of the common disadvantages embrace deficiencies in creating superior access towards certain valuable services, loss of organizational along with managerial identity and disturbances concerning routines both at the organizational as well as the clinical level. However, these difficulties can be resolved with the proper execution of valuable ideas as well as the opinions from the management team of the hospitals by a certain degree (Brousselle, Denis & Langley, n.d.). Thus, on the basis of the above discussion, it can be affirmed that as a renowned administrator, the incorporation or M&A of hospitals might prove to be quite beneficial for a specialty healthcare business. 3.0. Feasibility of a Profit or Non-Profit Organizational Status for Healthcare Facility In relation to determine the feasibility of a profit or a non-profit organizational status in relation to the healthcare facility, it can be affirmed that the new specialty healthcare business can be based upon a profit-oriented organizational status. This can be justified with the reason that an organization which intends to create as well as open a new specialty healthcare business desires to attain its expected business goals in terms of any organizational mission. Correspondingly, the mission of the proposed organization relating to this context can be identified in terms of delivering effective healthcare services to the patients and complying with their requirements through hiring innovative healthcare leaders and thereby providing upgraded healthcare facilities. In order to fulfill this particular mission, an organization needs to develop as well as needs to preserve its economic feasibility and create adequate funds for investing in the introduction of effectual technological advancements. These requirements can be effectively satisfied if the organizational status is based upon a profit–oriented structure rather than being concentrated on a non-profit one. Moreover, as the new specialty healthcare business would incorporate several physicians of different specialized areas such as dermatology, surgery, heart disease and gastroenterology among others, it will require making significant investments that can be performed successfully if the organizational status is based upon profit orientation. In addition, the profit based organizational status of concerning new specialty healthcare business would not only support in enhancing the satisfaction level of the patients but also in augmenting its profitability followed by the accomplishment of a superior competitive position within the industry (Cengage Learning, n.d.). 4.0. Contract Structure The deliverance of various healthcare services has been viewed to be quite complex in this present day context due to the engagement of professional interrelations and multiple businesses. Moreover, it has also been noted that the modern hospitals extensively rely upon the outside agencies in order to provide active support to the medical staffs for efficiently performing their different operational functions. In this context, the medical staffs can be identified as significantly liable for delivering effective ideas relating to the safety as well as the quality care of the patients offered by the different medical practitioners (Commonwealth Regional Specialty, 2009). By considering the aforementioned aspects, it becomes quite indispensable for a hospital to construct an effective contract structure emphasizing upon the inclusion of medical staffs concerning the healthcare facility. The four indispensable clauses that can be included in a contract structure concerning the inclusion of medical staffs for a new specialty healthcare business have been described hereunder. Clause 1: Salary and Incentive Payments In relation to salary and incentive payments, the medical staffs would be provided with attractive remuneration schemes on the basis of their educational qualifications as well as past experiences in rendering healthcare services. However, the offered remuneration will be treated as negotiable owing to the competition prevailing in the industrial context to attract efficient and committed professionals. Clause 2: Duties and Requirements The medical staffs would be recruited on a full-time basis apart from recruiting them on a part-time basis which will render better quality assurance within the healthcare industry. The job for every individual staff will be scheduled in terms of shifts, excluding the doctors and the higher authority personnel. The staffs, on the basis of their performances will be rotated from one department to the other, including the administration department as well as the training and mentoring department of the proposed hospital. The staffs, the executives as well as other professionals associated with the healthcare organization are further required to comply with the merged organization’s ethical code of conduct in relation to maintaining confidentiality, remaining committed to the welfare of the society and rendering quality services to the patients. Clause 3: Outside Activities In relation to the medical practitioners getting engaged in outside operations, this particular clause restricts the staffs, excluding the doctors, specialists and the administrative executives, from being employed in any other healthcare related part-time or full-time or self-employment options. This clause will be enacted particularly with the vision to ensure ethical soundness and commitment from the healthcare staffs. Notably, even though the specialists and doctors are allowed to remain employed with any other healthcare segment, this clause will necessitate there availability in terms of emergency situations apart from their presence in the healthcare centre for at least for 4 hours a day. Clause 4: Termination Termination in any job sector is considered as a vital aspect. Under the clause of termination in relation to the proposed healthcare centre, staffs will be terminated immediately, if found guilty in any kind of felony or illegal activity outside or inside the healthcare centre, if accused to be hindering the interests of the patient, if found to depict an attitude of non-compliance towards the organizational norms, if found to be conspiring regarding the authoritative decisions of the centre to any outsider and if found to be hampering the working environment of the organization. 5.0. Plan to Hire or Appoint Specialists for the Clinic In order to hire or appoint specialists for the clinic, certain steps need to be followed in an effective manner. Firstly, a notice or a circular of vacancy for the position of medical specialists should be published by the responsible authority in one of the foremost local newspapers. Secondly, the applicants for the aforesaid position would undergo selection or evaluation screening at least 10 days after the notification of the vacancy in the newspaper. Finally, the appointment of the selected applicant should be endorsed by the responsible authority in due course of time. Moreover, the hiring or the appointment of the medical specialists for the clinic can also be conducted by emphasizing upon the qualification standards as well as the functions that must be possessed by the medical specialists. From the viewpoint of the qualification standards, the medical specialists must bear the certificate of MBBS (Bachelor of Medicine and Bachelor of Surgery) or MD (Doctor of Medicine) with adequate experiences in any of the specialized areas of surgery, dermatology, gastroenterology and respiratory disease among others. The medical specialists must also be dynamically engaged in several training activities along with enduring medical research initiatives. From the perspective of functions, the medical specialists should have rendered special duties at the time of any emergency, conducted training particularly for the medical residents and carried out clinical-ward rounds regularly. Additionally, the medical specialists must have participated in various healthcare related research projects as well as attended different clinical conferences and ensured proper direction over resident staffs (Department of Health, n.d.). 6.0. Analysis of Medicare or Medicaid The perception of Medicaid and Medicare are typically regarded as the governmental based intervention programs that deliver both medical services to the residents of the US. These two programs are quite distinctive in their nature being controlled by the Centers for Medicare and Medicaid Services which is again viewed as one of the vital divisions of the US Department of Health and Human Services. Medicaid services are regarded as health-coverage associated services that are offered to specific groups of people who further possess limited income as well as resources. Contextually, the different services of Medicaid include prenatal care, physician services, inpatient as well as outpatient hospital facilities, supply of vaccines to children and clinic services relating to rural healthcare among others. It is worth mentioning in this regard that the different programs which are treated as inclusive under Medicaid services have been especially designed for low-income institutionalized people or individuals. On the other hand, Medicare services are viewed as the programs relating to health insurance concerning medical as well as hospital care that have been particularly designed for the aged residents and handicapped residents of America. The different services of Medicare include facilitating hospital stays for the patients, ambulance transportation, hormonal treatments, chemotherapy, vaccinations, renal dialysis and bold transfusions among others (MediLexicon International Ltd, 2013). Furthermore, on the basis of the above discussion, it can be affirmed that Medicare services can be accepted as a potential pay source for the proposed exclusive clinic as it does not concentrates upon low-income individuals who are fundamentally treated under the dimension of Medicaid services. 7.0. Conclusion M&A have become one of the major contributory elements for modern day healthcare organizations in attaining their business objectives of sustainability as well as competitiveness through productivity. The chief benefits of M&A of hospitals include improved service quality, augmented financial advancements and better utilization of human resources. On the contrary, the disadvantages of M&A in relation to the healthcare industry commonly encompass loss of managerial identity and shortage of accessing certain healthcare services by a large extent. Notably, the proposed specialty healthcare business can be based upon profit-oriented organizational status that would eventually help in fulfilling its desired business objectives. In order to hire the medical specialists for the clinic, the new specialty healthcare business can emphasize upon the functions as well as the qualification backgrounds of the specialists by a greater extent. As the new specialty healthcare business is feasible towards profit-oriented organizational status, it can accept Medicare services as potential pay sources for the exclusive clinic. References Brousselle, A., Denis, J. L., & Langley, A. (n.d.). Syntheses of the literature. What Do We Know About Hospital Mergers? Cengage Learning. (n.d.). Finance. Financial Management in Not-for-Profit Businesses. Commonwealth Regional Specialty. (2009). Rules and regulations. Medical Staff Bylaws. Department of Health. (n.d.). General guidelines. Qualification Standards, Functions, Admission and Appointment Requirements for Department of Health Medical Specialists/Consultants. HealthLeaders Media. (2013). Hospital merger and acquisition strategies. Breakthroughs. McDonald, J., Coulthard, M., & Lange, P. D. (2005). Planning for a successful merger or acquisition: lessons from an Australian study. Journal of Global Business and Technology 1 (2), pp.1-11. MediLexicon International Ltd. (2013). What is Medicare / Medicaid? Info. Project HOPE. (2013). Trends in hospital consolidation: the formation of local systems. Health Affairs. Sherman, A. J. (2010). Mergers and acquisitions from A to Z. United States: AMACOM Div American Mgmt Assn. Read More