Emanuel Medical Center Case Study Example | Topics and Well Written Essays - 1500 words

Emanuel Medical Center - Case take aim ExampleWhile this was a public relations problem in the short term, the issue pointed egress the larger systemic problems that exist at EMC. The ED has increasingly become a cost center, and lag morale and quality of make out is reflected in this dilemma.The Emergency Medical Treatment and passageive Labor Act (EMTALA) of 1986 mandated that emergency rooms must treat all patients, without regards to their ability to pay. This legislation took effect at the similar time that the numbers of under and uninsurable people in California began to escalate. Lacking primary care physicians, the uninsured call for made the ED the primary clinic for their health care. This pull ahead exacerbated EMCs financial position from 2 aspects. First uninsured people were using the most expensive delivery system available, which overloaded the mental object of the ED. Second people were waiting until their condition was chronic or terminal before seeking treatment, which further drove up costs. The outdated ED was operating well in excess of capacity, which put an redundant strain on nurse availability, response time, and specialty services. With half of the patients that were admitted through the ED either uninsured or underinsured through Medi-Cal, Moens challenge was to find areas that could compensate for the large losses incurred by the ED.With all of health care experiencing declining reimbursements and increasing expenses, it has been a difficult task to find areas of profitability. EMC expenses have outpaced revenue growth in the period of 1997-2002. Wages and salaries, the largest single expense, grew by 28 percent during this period, while revenues increased by hardly 23 percent. The nursing shortage has contributed to the problem, as it has forced EMC to hire temporary nurses, and reduce the number of beds available, which have both negatively impacted the bottom line. During this same era, reimbursements from Medi-car e, Medi-Cal, and HMOs were declining. An experiment with capitation in the late 1990s did not prove successful, and the hope of vertical integration became an insurmountable expense.Area competition has also put contract on EMC. Specialties and high-tech procedures are largely not available at EMC, and this business goes to the competition. The financial creation of EMC operating at a loss for the past several years has made capital investment in new equipment and technology out of reach of financing. In addition, closures and consolidations have increased the hostility of the outer operating environment. All of these factors increasing expenses, reduced reimbursement, competition, and escalating salaries have all combined to form the perfect storm. The notwithstanding bright spot on the balance sheet has been the investments that EMC made in the 1990s, which managed to keep them operating into the twenty-first century. In fact, without these investments the financial solvency of EMC would be in doubt. In addition, EMC enjoys a significant amount of community support, and has crisply sought community involvement through a matching grant from the Mary Stuart Rogers Foundation. Moens greatest operational challenge will be to reduce operating expenses, and increase patient revenue within the realities of their watercourse financial situation.2.) There are numerous strategic options available to Robert Moen, though they all have a large degree of uncertainty in regards to their financial