Boston Childrens Hospital: Measuring Patient Costs Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Boston Children's Hospital: Measuring PatientCosts

1. Analyze the market and competitive forces faced by Boston Children’s Hospital. What are BCH’s strengths, weaknesses, opportunities and threats (SWOT)?

STRENGTHS

Boston Children’s Hospital (BCH) offers a complete reach of health awareness administrations for youngsters with a global reach throughout every country of the world. It is also the supplier of-final resort for kids with uncommon sicknesses, for example, Wiskott Aldrich (blood infection) and Bubble Boy Syndrome (immunodeficiency) and has very specific doctors and costly gear accessible at all times. In 2011, U.S. News & World Report positioned BCH as the top pediatric doctor's facility in the U.S., with more top-positioned fortes Heart and Heart Surgery, Neurology and Neurosurgery, Cancer, Orthopedics, Urology, and Kidney Disorders—than whatever possible pediatric healing center.

BCH has 228 specialized clinical programs that operates and caters over 500,000 patients by conducting about 26,000 surgeries. It provides care at its main campus in Boston’s Longwood Medical Area and also at 6 community hospital locations; not only that it also has several specialty care centers in eastern Massachusetts and New Hampshire.

90% of the most critically ill children in Massachusetts are treated by BCH and it is also the largest provider of health facilities in the state to low-income families, with Medicaid covering 30% of its patients

BCH likewise held the planets’ biggest pediatric healing center based on exploration focus, with $225 million in yearly subsidizing and in excess of 1,100 researchers. Its research facility scientists and doctor agents had recognized novel medicines and helps for an extensive variety of crippling pediatric conditions from Nobel Prize-winning work in polio to the later disclosure of hereditary variants interfaced to hankering control and stoutness.

WEAKNESS

BCH executives unmistakably saw the test of supporting its industry-heading positioning and examination motivation in the midst of the extreme neighborhood and national weight to decrease costs. They realized that their costs were practically identical to other detached pediatric healing centers around the nation, and suspected that the expenses reported by pediatric wards inside full administration doctor's facilities may be under-reported because of cross-subsidies from more lucrative grown-up divisions. They knew, notwithstanding, that BCH did cause higher expenses to satisfy its significant research and showing missions and to nurture a fundamentally more unpredictable and asset escalated patient populace.

OPPORTUNITY

BCH had been exploring different avenues regarding new repayment approaches and, in 2012, it turned into the first pediatric doctor's facility to enter into an Alternative Quality Contract (AQC) with Blue Cross Blue Shield of Massachusetts. This three-year AQC indicated a movement from expense for-administration repayment to altered installments with extra compensations focused around investment funds produced and quality targets arrived at. The agreement determined no rate increase for 2012 and humble expanding beneath expansion for the rest of the understanding. Other open and private payers were additionally approaching BCH to arrange packaged installments that would blanket entire scenes of care that would supplant customary charge for administration repayments.

THREATS

In the midst of these private safety net provider activities, monetarily constrained state and neighborhood governments had been decreasing their repayments to medicinal consideration suppliers. BCH's agreement with New Hampshire's Medical project had as of late passed, and the state was unsure whether it could keep on standing to send patients to BCH. In the event that different states have settled on comparable choices, low-salary patients would have entry to BCH offices and forethought.

The charge of high costs to the patients is closing down as an alternate risk for BCH as the other restorative forethought focuses in the market that give administrations to both grown-ups and kids are charging lower expense to the youngsters and asserting to be giving same quality; which is hurting BCH despite the fact that the charges made my BCH are fitting contrasted with other health care centers whose focuses and practice is giving consideration to kids.

2. In this industry situation, why should clinical department heads, such as Drs. Meara and Waters, be interested in developing more accurate costs for their procedures?

With the decaying economic situations, BCH ends up in a position where decreasing expense is the best intends to ambush more number of patients as the government is confronting money related obligations and is looking to cut wellbeing expense.

BCH has conclusions that are better than those of their rivals, and despite the fact that BCH may have higher unit costs for individual methodology; it can be assumed that their aggregate restorative costs for a specific condition are lower over the full mind cycle. They treat patients all the more effectively with less difficulties and less visits than different suppliers.

It is evident that with more precise expense data..................................

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by Robert S. Kaplan, Mary L. Witkowski, Jessica A. Hohman Source: Harvard Business School 28 pages. Publication Date: March 23, 2012. Prod. #: 112086-PDF-ENG