MRI Services
You are the administrator of an established orthopedic
surgery practice. Due to higher demand for MRI services resulting from
increased population and the relocation of many employers to the local
community, the practice is considering a new service for provider-based
delivery-a portable MRI, for example. As an administrator, justify the
reasoning behind provider-based delivery and develop a complete launch plan,
including a budget and consideration of environmental factors. You must
determine how data will be used to support the new service, and consider human
resources issues affecting this new program.
The practice has these issues to consider:
? The
local population’s payer mix consists of managed care and Medicare patients.
Recently, in an effort to reduce health care costs, many managed care companies
have reduced the payment for MRI services. At the same time, the practice is
facing increasingly stiff competition from other, lower-priced MRI providers.
The main advantage of your orthopedic group is its ability to provide high
quality medical services that other providers can not match.
? This
practice needs to plan for the recruitment and hiring of an experienced
radiologist and other highly skilled technical staff to start the MRI services.
The tight employment situation makes finding qualified personnel a challenge.
Also, after hiring the appropriate staff, it is critical for the administrator
to think proactively in order to motivate the staff and use an appropriate
appraisal and reward system.
? If the
orthopedic surgery practice decides to provide MRI services, the following
financial data need to be considered:
o Cost of
purchasing an MRI machine: $1,200,000
o Annual
cost of hiring new radiologist to provide professional service: $500,000
o Annual
maintenance and warranty: $30,000
o Additional
office space to accommodate MRI: 5,000 SF; rent is $20/SF
o Hiring
four additional technical staff at $60,000 per FTE
o Other
operating expenses: $50,000
o Projected
number of MRI procedures per year: 10,000
Answer the following questions in the paper:
1. Provide a
clear and concise statement of the opportunity to be addressed. The opportunity
statement should be no more than two or three sentences and, in many cases, a
single, well-crafted sentence is sufficient.
2. Discuss
the importance of an administrator’s vision in turning the challenge into an
opportunity. Identify the organizational structures that would be most effected
by this situation and explain the impact on each organizational structure
identified.
3. Consider
and discuss how the environmental factors such as competition, reimbursement,
employment, etc., may impact the opportunity of starting MRI services. Explain
the risks or benefits that the practice would face by attempting to capitalize
on the opportunity.
4. Explain
what human resource plans or initiatives are needed to manage the strategic
goals associated with the identified opportunity.
