Virginia Mason Medical Center (Abridged) Harvard Case Solution & Analysis

Virginia Mason Medical Center (Abridged) Case Solution

Blackford and James Tata Mason in 1920. It is one of the leading health care centers that provides comprehensive medical services to the patients at a single place. The management team believes that it could provide the customers the finest patient care services possible by working together. In 2000, Dr. Gary Kaplan became the CEO of the company. During this time period, the center faced several challenges which affected the market position of the center. The morale of workers declined and hospital faced intense competition in the market. Due to this, the center has lost money for the very first time. Moreover, after analyzing the entire situation of the organization, Dr. Gary decided that they need to implement the strategy in the center by that the center address all the issues and challenges effectively as well as become VMMC as the leader of the health care center. The main issue that the company faced is the lack of execution of the strategic plan in the center. The Toyota Production System helps the center in better analyzing the manufacturing management method that totally focused on the efficiency and quality of the company. Therefore, the biggest challenge for the VMMC is to establish the methodology of manufacturing in the hospital.

VMMC should implement the total quality management program in the hospital in order to meet the actions of the center however, the management of top down did not meet the actions oriented medical centers. When the company discovered the TPS, the center did not find any error in the organization. Due to this discovery the center increased its profit margin as well as provided the best quality services to the patients in a more reliable manner which as a result, created patients’ loyalty.

PROBLEM STATEMENT

VMMC has faced several issues which include, financial loses, intense competition, losing staff confidence, and lack of skill management tactics. After facing all these issues, the company decided that it would move its operations to the fast moving innovation frameworks which would not only help in improving its market position in the health industry as well as build confidence among the patients and the staff members. In order to improve the financial position of the center, the management decided that it will reorganized the cost of academic by research and travel time. Moreover, due to the lack of medical care, the death rate has increased as well as demoralizing the faith of the peoples in the medical center. VMMC has also faced issues of human tragedy which have could restrict the future. These all issues arose due to the lack of technology availability as the center does not treat the patients due to the error of technology and equipment's, which afterward started creating disappointment among the patients as well as affected the performance of the medical center.

Virginia Mason Medical Center Case Solution

ANALYSIS

Due to the poor economic condition, the company has faced many financial loses. In order to improve the financial position of the center, the company implemented two main actions. Firstly, the company decided that it would reorganize the minor and routines incremental changes in which the company has expertise however, due to the economic crisis it decided that it would move its operations to the technological frameworks as it would help the organization in maintaining its strong position in the market. Secondly, due to the slow changes, VMMC become the learning organization. According to the contingency theory the company believes that they would easily analyze the performance of the company by technology and task interdependence factors that best recognize the VMMC inefficiency in his past business operations. Kantar considered that larger corporations must be bankrupt and leave the business to be prospered by a new entity which can better adapt to its environment.................

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