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Essay / Research Paper Abstract
A 5 page review of a 2001 article by Gary Pisano (Harvard Business School) detailing the changes made at a Massachusetts hospital that allowed the simultaneous reduction of costs for caring for cardiac patients, the reduction of resource utilization and patient length of stay, and improved patient outcome. The author details the process the organization went through and concludes that although several problems still remained, the processes that had been put in place to resolve costs and patient outcome in the restrictions levied by capitated insurance contracts could be expected to be successfully utilized to overcome those problems as well. Bibliography lists 3 sources.
Page Count:
5 pages (~225 words per page)
File: AM2_PPmedEf2.rtf
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Unformatted sample text from the term paper:
1993 with the merger of Boston Massachusetts Brigham and Womens Hospital (BWH) and Massachusetts General Hospital (MGH). This merger resulted in the creation of Partners HealthCare System, Inc. (Partners).
Its intent was to integrate and coordinate the health care services of the region so that quality could be heightened while the prices being charged for health care services
were kept at a minimum (Pisano, 2001). The improvement of medical service efficiency became an important focus in this effort and the organizations Cardiac Surgery in patient services became
the test case for improvements in the care process (Pisano, 2001). Ultimately improvements would be extended to thirteen additional arms of the health care delivery service (Pisano, 2001).
Pisano reports that as a result of the reengineering of the care process improvements were felt in:
"enhanced team work, a methodology for systematic data collection and analysis of data on the care process, costs and outcomes, plus some reduction in costs and length of
stay for a subset of BWH patients". All of the results of this reengineering, however,
were not as positive. The process had not taken into consideration the fact that the healthcare environment was undergoing a period of rapid change. Health maintenance organizations and
other insurers had initiated fixed price contracts with payers and the prices that Partners had set where not set in consideration of those fixed prices but rather solely in consideration
of the organizations own internal inefficiencies and redundancies (Pisano, 2001). In other words, taking on insured patients meant that the hospital would only be able to reap a fixed
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