Performances pay for MGOA Physicians Harvard Case Solution & Analysis

Performances pay for MGOA Physicians Case Solution

Problem Statement

The rubric of the particular case defines the importance of applying the accuracy of the process flow related to generate the compensation of the hospital. In this scenario, MGOA was receiving a similar problem related to the poor implementation of the compensation plan over the doctors and surgeons because it was already surviving to recover the deficit flow of the operations related to the reimbursement of insurance amount provided by the major institutes like Health Maintenance organization.

However, the main problem was the poor operational performance by MGOA regarding paying inefficient funds to the doctors, which means that most of the funds would be deducted and transferred to the developmental activity instead to providing benefits to the highly qualified and experienced doctors and surgeons. Therefore,this would allow de-motivating the existing as well as new doctors with respect to providing insufficient funds in terms of salaries and bonuses.


Case Facts

MGOA was considered to be an independent organization related to the physician-based facilities, as well asa successful institute for the academic research with regard to orthopedic facilitation. However, with a successful record in the field of medical facilities, the hospital was considering some changes in the operational flow of process due to the fact that the costs bornby the organization were more than their respective revenues. It also means that doctors and surgeons paid more salaries and bonuses than the hospital’s revenues. Therefore, it has been analyzed that an organization was consistently towards the deficits flow of operations and thus, not allowing recovering the particular loss overtime. Thus,with all these issues, it shows that it would change the entire operational flow and increasing the activity of development funds as the key to overcome the deficit amount.

Analysis made by Rubash

From the following analysis made by Rubash (Chief of Orthopedics), it has been determined that with certain financial problems faced by the hospital, he identified the basic changes in the operations that would be able to increase the overall efficiency of the flow and to overcome the deficit that the organization faced during the last couple of years. For that, he elaborated some ideas suitable for the hospital’s long-term success.

First of all, he used to determine the average salaries made per year and reimbursements allocated to the doctors and the surgeons then looking towards the bonuses that distributed to those contributed towards the profits of the hospitals in terms of more services from the patients and their operating times for the treatment. Therefore, with all these concerns, he used to analyze the proper utilization of the process that would be able to decrease the deficit in terms of high cost and insured amount that should be paid later.

Concluded by Rubash

After the critical analysis of the organizational flow made by Rubash, he concluded that in order to decrease the financial problems of the hospital in terms of deficit amount made through insured amount, developmental fund should be implemented to increase the growth and to contribute future investments regarding the proper use of research and development, as well as there should be more emphasis on academic as well as private practitioners should be increased..................

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