Intro To Health Management And Policy Unthsc Case Analysis

961 words - 4 pages

Assignment 2- Case Analysis
Meagan Kyle
Assignment 2- Case Analysis
Central Med Health System (CMHS) is a nonprofit hospital, established in 1996, that serves the North Central Iowa population. CMHS’s mission is to provide “expert care close to home”, and their core values are: quality, customer service, innovation, and teamwork. The organization is facing a dilemma. They have $13 million to invest and have narrowed down the expansion project between two departments which are radiation oncology and interventional cardiology. CMHS must determined where to invest their capital.
CMHS may decide to invest in radiation oncology. This department only has one physician who alone sees up to 70 patients daily. He works in an outdated and small facility. The department is lacking in equipment. Machines that are currently being used for patient treatments are exceeding the recommended use, and if one machines crashes patient data is nontransferable. The current market for radiation oncology in North Central Iowa serves 6 counties with approximately 1,000 patients and the market share is 43.2%. Over the next 5 years a projected 8% market growth is expected. The projection of cancer rates increasing will drive a demand for new technology to assist in treatment.
The Interventional Cardiology department was also chosen to receive potential investments for expansion. This department provides newer and safer procedures for cardiology patients. CMHS chose this department also due to a projected demand in interventional services. American culture and lifestyles are increasing the risk of heart problems that will need these services. The current market for Interventional cardiology also serves the same 6 counties with a total of 2,224 patients. The market share is approximately 32%, with a projected 20% increase. Over the past few years the department has been upgraded and new expert physicians were brought in. The CMHS department now serves as the standard for surrounding hospitals, however department leaders believe that further investments are necessary to stave competition.
CMHS must evaluate each department and determine which program should be expanded. Question 1
Pros for investment in the Radiation Oncology are: Projected market growth and increased demand of services, potentially reducing medical errors, serve targeted population, provide higher quality of care, and treat more patients. Cons for investment in the Radiation Oncology are: not as many patients need this service (1000 vs. 2000 in cardio), projected growth market/ demand not as high as cardio, and new treatment may be found for cancer. Pros for investment in cardio are: higher market growth than oncology, higher demand of services than oncology, generate more revenue, and serves more patients. The cons for investing in cardio is that the department recently has had an upgrade and the expansion does not fit as well with the mission/values. The radiation oncology prog...


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