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Contract Negotiations and Risks and Operating Margins" Please respond to the following:
• In the scenario, the contract negotiations between North Creek Healthcare and the community hospital concluded with an agreement on non-financial (legal) terms. Suggest the most critical element of the contract and the impact to the short-term and long-term operational strategy of a community hospital. Indicate the potential implications to the hospital's financial targets.
• Imagine you work for a hospital where the operating margins have been consistently below national norms for the past three (3) years. Discuss one key driver of the below average performance. Suggest one (1) strategy to improve the future management of the driver that you've discussed.
Go to the website below in the statement and get information to respond to this statement. In paragraph form about 150 words.
To the dismay of the majority of physicians today, both the practice of medicine and the "Business" of medicine have become so intertwined that it has become impossible to differentiate the two. Unfortunately, those physicians who either choose to resist this trend, or worse, ignore it altogether, all too often find themselves mired in unfavorable contractual relationships which, in turn can lead to lower revenue to the practice. While physicians understandably wish to focus on the treatment of their patients, it is now essential that they understand the importance of properly handling the business of medicine as well. (https://www.drlaw.com/Articles/Understanding-the-Negotiation-of-Managed-Health,-A.
I need a response to this paragraph below; a paragraph about 250 words the reference below can be used.
In the scenario, the contract negotiations between North Creek Healthcare and the community hospital concluded with an agreement on non-financial (legal) terms. Suggest the most critical element of the contract and the impact to the short-term and long-term operational strategy of a community hospital. Indicate the potential implications to the hospital's financial targets.
When two parties enter into a contract they become legally bind to the terms of the contract. It is obvious and as well rule of nature that stakeholders need to make compromises over various terms in order to accelerate the relation and same is the case here, between North Creek healt care and community health care. Every contract has its own nature and key consequneces attached, but at its core focus is over the risks and rewards that take into further the contract. What it seems to be most factor is the change in the language on some key non financial terms between North Creek and community hospital. Another important point that needs to be discussed is the inpatient rate. Cost basis seems to be used by North Creek while Community hospital uses other than cost basis that creates a different procedure in administration. Different policies might also be indicative of distinct organizational culture between two organizations. In order to make the contract value adding it is essential for both of theparties to be aware of each and every term mentioned in the contract so that there are no sort of potential conflicts. In short term as well long term there needs to be standardization of policies and procedures and more familiarity between two organization could help to encounter such challenges. There should be continous review of the objectives in order to assess that these are properly alligned.
Imagine you work for a hospital where the operating margins have been consistently below national norms for the past three years. Discuss one key driver of the below average performance. Suggest one strategy to improve the future management of the driver that you've discussed
In order to survive in this volatile business world it is very much important for every firm whether it operates in a service industry or manufacturing, that it adds grwoth and value gradually. For a health care organization having below average margins could be indicative of the fact that there are inefficiencies in the organization and should be corrected as soon as possible on order to remain competitve. Possible reasons can be lack of an effective strategy and as well leadership. In order to encounter such issues following are some suggestions:
o Have a close look on every financial metric
o There should be focus on quality, safety and service
o Continous counselloing of employees in order to make them aware of the goals of the firm
o Have some new plans and innovation
o There should be integeration of systems
o There should be seggregation of duties
o There should be delegation of authority but at the same time there is acountabiltity
Reference
McSherry, Robert and Jerry Warr. Implementing Excellence In Your Health Care Organization. 1st ed. Maidenhead: McGraw-Hill Open University Press, 2010. Print.