CASE ANALYSIS: BOSTON CHILDREN HOSPITAL: MEASURING PATIENTS COST Harvard Case Solution & Analysis

CASE ANALYSIS: BOSTON CHILDREN HOSPITAL: MEASURING PATIENTS COST Case Solution

Boston Children Hospital: Case Analysis

Introduction

Boston Children Hospital (BCH) is a well-known hospital which has expertise on children’s diseases. The hospital has the most competitive business model and it is running its business smoothly. The hospital has the most competent and highly qualified staff and also it has the most updated technology which differs it from its rivals. However, the firm is facing some issues internally and externally. In this study,the analyst will identify the issues and recommend the most feasible alternative strategies.

SWOT Analysis for BCH

Strengths

There are several internal distinctive core competencies which the BCH has and these competencies differ it from its rivals and other health care providers. These competencies include proper integration across primary and secondary departments and effective flow of information across the business units since proper integration across departments allow BCH to fully utilize its resources and to keep the work flow on track and to give timely services. On the other hand, updated information about cost and other internal issues allow executives to stay updated with the recent events and upcoming problems or issues. Moreover, the company has the most competent and qualified staff to treat its patientsas compared to its competitors which allow it to stay competent.

Weakness

The business model is performing well and there is no doubt that the hospital is generating acceptable profits. However, there are some weaknesses which affect the business model and hinder the executive to take proper strategic initiatives. The biggest weakness is that there is a lot of un utilized capacity and resources, which are putting pressure on the cost structure of the enterprise. Nonetheless, the company had taken initiatives in last 3 years to reduce this unusual cost in order to stay cost efficient but still the company required tremendous initiatives to reduce the cost to increase profitability.

Opportunities

There are numerous opportunities which can give the firm many chances to grow and to expand its business across the country as well as the globe. The enterprise has a very effective revenue recognition process, which enables it to generate enough margins as compared to its competitors. However, there is a great opportunity for the company to expand its business as the government is reducing subsidies and other benefits to health care providers which will create trouble for them to operate their business successfully. BCH, on the other hand, has enough resources and is charging a higher margin, which will allow it to expand its business. However, expansion will also allow increase the revenue even when the company reduces its prices.

Threats

There are very few threats, which are under consideration but these threats can become more dangerous if the firm doesn’t respond to them closely. The government has reduced the subsidies and other benefits, which were being provided to health care services providers and BCH is charging higher prices for its services as compared to its rivals or other industry peers. However, national and local pressure is also rising to reduce the prices which health care providers are charging. Therefore, the company has to address these issues in order to secure its business structure.

Interest of Department heads to reduce cost

In the current industry situation where every health care provider is considering reducing cost and to keep its technology updated, the department head of BCH are also focusing to reduce their cost while the firm has the most updated technology and has the most qualified and expert staff. The basic reason behind achieving cost efficiency is that the government has reduced the subsidies and other benefits, which were being provided to health care services providers and BCH is charging higher prices for its services compared to its rivals or other industry peers..................

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