Instruction
Write a 3-5 page paper on negotiating with external stakeholders by using the Mercy case study. You should demonstrate a thorough analysis of all stakeholders and their interest areas mapped into a matrix based on power/interest to understand how to navigate power and politics through relationships. Your narrative should include references to your readings and other sources to substantiate your recommendations and conclusions.
Mercy Case
Mercy County Memorial Hospital launched a series of efficiency studies to improve
productivity and address insurance-driven procedural cost cuts. Recently, the board
of directors instituted a Medical Management Office (MMO) to gather performance
statistics and assure a smooth operational flow for all of the various medical
departments. The surgical division has refused to address requests for procedural
review arguing the long-established procedures to maintain the highest quality of
patient care would be compromised.
The MMO hired a respected consulting firm to observe the surgical teams and make
recommendations to help decrease costs and increase revenues. The consultants
came back with a proposal which incorporated a technology solution to increase the
speed of the surgeons and a procedural recommendation to increase the
productivity of the supporting medical staff. The surgeons, nurses, and
anesthesiologists would now be measured by the number of procedures performed.
The technology solution recommended an investment in a new line of digital scalpels
and other surgical tools which would minimize the time for surgical procedures. The
second recommendation suggested a “just-in-time” resource allocation approach
that would eliminate long periods of staff down time by assigning people in 15
minute increments to specific surgeries.
The Players:
Hospital Board of Directors
Surgeons (all maintain private practice with direct paid fees by patients/insurance)
Nursing Staff (salaried professional paid by hospital)
Anesthesiologist Team (salaried professional paid by hospital)
Anesthesiologist Team (salaried professional paid by hospital)
Consultants
Patients/Families
Administrative Staff
Floor Nursing Staff
ER Staff -- Outpatient Triage
Shared Resources:
Pre-Op Beds
Operating Suites
Recovery Room Beds
The Consequences:
• The staff agreed to try the “just-in-time” schedule concept and an increased
surgical schedule. Although the number of surgeries increased, the time per
surgery did not decrease and sometimes increased when medical resources
were delayed with another patient.
• The pre-op and post-op wards found it difficult to manage the patient load
when the increased patient load flow was interrupted by unforeseen
difficulties which crop up during surgery. A minor change to a single surgery
now affects resources simultaneously assigned to other surgeries.
• The scheduling staff began to notice an increase in the number of “rework”
surgeries due to infection or procedural mistakes.
• Doctors found themselves involved in the scheduling process to balance their
patient load. Often they made changes to the administrative scheduler’s
original plan which adversely affected other surgeon’s schedules. These
surgeons would “correct” the change causing resource allocation to spiral out
of control.
• Although revenues did increase, costs rose slightly to cover repeat
procedures, duplicate monitoring actions, and increased legal fees. The
MMO has now stepped in to prioritize surgeries so that the most lucrative
financial procedures are given schedule priority.
• Nursing and anesthesiology staff began to complain that there was not
enough time allocated for patient turnover. They had no time to share
informal information which is not normally part of the official patient record,
but can help to enhance post-operative recovery care.
• The surgeons, nurses, and anesthesiologists who once were a strong team
began to argue and lay blame.
• The medical staff is demanding bonuses which were promised based on the
number of surgery metrics which were set to decrease the time per procedure
and increase the number of procedures. The Chief Finance Officer does not
want to pay bonuses since the surgical department has shown a profit loss
based on the increased costs. The nurses’ union is threatening to strike.
• Surgeons would not be compensated for “rework” surgery which was
performed within a 48 hour post-surgery period. Patients who returned to surgery from the hospital wards would count against the surgeon. For the
patients who returned home immediately after surgery, the surgical staff
deployed the standard operating procedure (SOP) which directed emergency
patient calls to return to the emergency room nearest to them. Many of these
patients were transferred back to Mercy Memorial; however, these were
logged as “transfer patients” and not “rework” patients.
Mercy County Memorial Hospital – The Exercise Challenge
The consulting group was unceremoniously kicked off of the project and the surgical
department reinstated their original procedures of operation. Relationships and
communications among the medical professionals on the surgical team have not
recovered. The staff continues to snipe at each other.
You are a consultant who has been brought in to work with the surgical department
to achieve the original goals of increased staff productivity bolstered by increased
revenue opportunities and stable, if not lower costs.
The surgical staff believes they have already given an outside consultant and “reorg”
a try and see no reason to make any changes to their long established procedures
which are working just fine.
How would you approach them to become part of the consulting process? What
strategies might you use to help them rebuild their communications and professional
relationships? What suggestions do you have for the various members of the Mercy
County Memorial Hospital surgical department to help them address the board’s
concern for the need to increase revenues and better manage the costs attached to
limited resources?