Performance Management at Intermountain Harvard Case Solution & Analysis

The case illustrates the performance management system revival at Intermountain Health-care Centre. Inter mounta in Health care center is a non-profit clinical service provider, which operates in Utah, in 21 hospitals. Over the period of time and under the leadership of ceo and HR director, the hospital organized itself in a way that offer high service level with low cost, while maintaining the Human resource in the hospital. The key ingredient dentified as the success factor of Intermountain hospital is the level of ownership and engagement it offers to the employees. The HR and the top management devised such polices and communication channel, that descends the information and decision making authority to all levels in the organization. Though at initial phases, the decision making policy, failed to correctly gauge and communicate with the low level employees, however, the right identification of the problems and establishment of an interactive engaging culture within the organization, improved the engagement of the employees and reinforced the performance level, resulting in great productivity and achievement of short and long term goals.
Performance Management at Intermountain Harvard Case Solution & Analysis

In devising the performance management system, the management clearly outlined the performance parameters for each employee in the system which enabled the 100% performance achieved along with the goal accomplishments. Since these ,measures improved the overall performance of the employees, enabling them and empowering them harvested good results for the hospitals in term of cost reduction, however, the management of the Intermountain Hospital faced the imminent threat from the local and federal government of lowering or reducing the financial quota allotted to the hospital cares, resulting inrevenuers reduction, also since the New York times also published an article, outlining the success of Intermountain and recommending the hospital for cost effectiveness, the federal government might take the notice and may result in reducing the finical quota to healthcare, which would ultimately damage the revenue o the hospital.The Particular situation represents a dilemmato the management of the intermountain hospital for balancing the weigh between improving efficiency and cost reduction with the revenues of the Hospital.
Keywords: Performance Management, Financial Deadlock, Efficiency, Cost Reduction, Federal Quota.
Problem Identification
The Major bottom-line problem Intermountain faces:
1- The Federal Government is projected to reduce the healthcare quota in the future that might affect the revenues of the hospital in the Long run, due to limited resources.

2- The cut back of the federal Healthcare quota will create hurdles for the intermountain in maintaining the quality of the services and maintaining low cost at the same time.
Causes of the Problem
Since the intermountain has been able to maintain its functions and imply the technology and innovation to it processes by continuously reducing the operational cost, the federal government identified the trend in the market, which depicted that the hospital can maintain its resources with less financial aid as well, and thus the threat of diminishing financial quota is eminent which will save the big amount to be spend on healthcare, thus making the government utilize the fund seffectively........

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