Alan Kendricks at Cardiology Associates Harvard Case Solution & Analysis

Alan Kendricks at Cardiology Associates Case Solution


Southeastern Pennsylvania University Hospital (SPUH) and Southeastern Pennsylvania Academic Association (SPPO), both are a part of Southeastern Pennsylvania HealthCare (SPHC). SPUH was the most growing hospital in southern Pennsylvania. There are 675-bed in the academic facility and its occupancy rates were increasing continuously. Southeastern Pennsylvania University Hospital had patients not just from United States, but people from abroad also went there for treatments. The patients are attracted to it due to its reputation for taking world-class care of its patients, which is why their revenue was strong and they are seeing a 5% increase in revenue over expernse.

The companion Southeastern Pennsylvania Academic Physicians Association (SPPO) also was strong in both finance and contracting for physician practice revenues. Moreover, they are trying to grow by further providing more healthcare systems elsewhere. As a result, they faced intimidating increases in costs and complexity in case mix. A five-year projection showed the need for a more strategic, quick, and aggressive management of care.

Cardiology Associates was the core private physician practice in the division of cardiology at SPUH.  The reason for this was that leadership and management issues required new skills, which can manage these problems.

As still he was committed to his job and excited about the future. He serves several days with senior executives and clinical leaders at the hospital, exploring the strategic potential for the cardiology program.  Across the country, cardiology saw an 15% increase in total inpatient volumes and 18% in total inpatient contribution profit. The Growth was high, and competitors were streaming into the field.

 Identification of problems and issues:

Cardiology Associates had designated four growth areas at the center of SPUH’s business strategy. Hospital decided to appoint Alan as the chief of the cardiology division, Alan is the right person for this position, as he has great opportunities to grow Cardiology association. His success will come when he is able to convince his colleagues to adopt the necessary changes, which are:

  • physician and staff were resist to change
  • increase in total inpatient volumes by providing high quality facility (profitability)
  • physician and staff were not motivated so they were dissatisfied

Analysis of the situation

Alan agreed that the time was suitable to set the long-term goal and change cardiology practice with larger organizational issues of hospital and the SPPO. However, in first six month the day-to-day operations were not going smoothly, since the first six months were a crash course for him in budgeting, human resource, revenue, compliance, and compensation issues. He recognized that there are some missteps in his approach, since he was not as collaborative with other physicians and staff as should have been. Many of the support staff did not like the change. On the other hand, some nurses were comfortable in working more efficiently without having to relay information between the doctors and other departments. Alan considered five key players to work together while eliminating the common issues. These are; practice manager, previous medical director, junior physician, “star” senior physician, and division chief..................

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