Hillside Hospital Harvard Case Solution & Analysis

Hillside Hospital Case Solution

Q no: 1) Classify the activities of Dr. 

1.     Strategic planning:

Dr. Richard Wells was the chief of Medicine at Hillside Hospital in Chicago. Dr. Wells had announced that new Practice Plan of Trust required all the doctors to join the plan or leave the hospital premises.He developed this plan for the purpose to regulate the income of physicians to in accordance with the Kent Medical School Salary Regulations. In addition, he intended to increase the department’s income with funds otherwise which was difficult to attain.

Dr. Wells planned to structure practice plan as a department fund that would help the Hospital to cope with the financial crises. Moreover, he expected that the practice plan would pool physician’s professional fees and pay them salaries according to the Kent’s regulations and standard and the additional fees would be retained by the department for its own use.

However, Dr. Wells did not want to tie the salaries of the physicians to the academic rank. He assumed that if they couldn’t perform well then their salaries would suffer. In addition, he was also trying to maintain the hospital aim away from the profitability. He thought that if the doctors are interested in making money by providing their services then they shouldn’t be in the hospital.

Dr. Wells had proposed this Practice Plan or Trust to give the benefits regarding health, life and malpractice, long-term disability insurance, and a tax deferred annuity program as these benefits had previously been purchasedby members’ after tax dollars.He had put certain conditions in the plan that the doctors received an extra financial credit for professional expense if theygenerated more income than their salaries revealed. However, as per the Hospital’s law an additional income generated by the doctor would be used for department expenses.

In addition, the department would also collect complementally income from chief service patients as they were admitted to the hospital without private physicians and received free professional services before the establishment of the trust.  However, after the establishment of trust, Dr. Wells employed senior chief resident as the group’s junior staff physicians and admitted all junior staff patients as patients of the professional practice plan. Therefore, the trust could then bill junior staff patients through its provider position. Consequently, the trust collected fees that were not presented the hospital when each doctor maintained an independent practice.

2.     Management Control:

The practice plan or Trust was governed by the board of trustees. The board was consisted of five members and responsible for the developing and implementing trust policies and approving loams and budgets. Dr. Wells was the permanent member of the board therefore; he was responsible to appoint other trustees to govern the Trust. He appointed two trustees and the other two trustees was elected by the department. Furthermore, Dr. Well would also arrange periodic meetings for all the trust members.

However, Dr. Wells’ role in the management was not appreciable as many of the doctors and senior professionals were unable to get the idea of establishing the trust. Dr. Wells didn’t communicate effectively the idea and Trust objective to other doctors and staff members. Many issues were also remained unresolved by Dr. Well such as reconciling salaries faculty rank and academic and financial contributions.

In addition, many doctors even opposed to join the Trust and postponed their joining. It seemed that conflict was arising and attitudes of the doctors in the department continued to differ therefore, Dr. Well decided to make the membership of all full time academic physicians mandatory. This initiative by Dr. Wells had forced every physician and to make quick decision. Moreover, Dr. Wells slightly presented his role in a dictatorship manner which caused many of the senior professionals to leave their jobs....................

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