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Harris Memorial Hospital Case

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The information presented in the dashboard clearly shows that Harris Memorial Hospital is earning less income compared to Eastside Medical Center and U.S. Median. For instance, Harris’s inpatient revenue is 30.5 percent while that of Eastside Medical Center and U.S. Median hospital is 61.9 and 46.2 percent respectively. This is despite the fact that Harris hospital has the largest market share. Its market share percent is 65.5 while that of Eastside Medical Center and U.S. Median hospital is 34.5 and 57.4 respectively. The observation that Harris hospital can enhance its profitability by focusing on revenue and cost is correct. These two areas are contributing to its lower revenues compared to Eastside Medical Center and U.S. Median hospital. …show more content…
For instance, Harris, Eastside Medical Center, and U.S. Median hospital’s average charge per visit is 307, 410, and 353 respectively. Clearly, Harris is charging the least. It could be that the hospital uses the strategy of charging lower prices so as to attract more patients. The fact that it has the highest market share can attest to the effectiveness of this strategy. However, with the high market share, the hospital ought to be earning more compared to both Eastside Medical Center and U.S. Median hospital. The advice that the hospital should use its market share to negotiate better rates contacts with major payers is very valid. The hospital should also increase its charges to a small …show more content…
Although the hospital's overall costs appear to be reasonable, the cost of inpatient services appears to be higher. Harris's Medicare inpatient cost is 7,345 while that of Eastside Medical Center and U.S. Median hospital is 7,084 and 6,858. The hospital needs to find ways to lower the cost without compromising the quality of service. Managing the cost will help increase Harris's net income. One area that needs to be checked is the cost of pharmaceuticals. The hospital also needs to consider raising its markup modestly. Its current markup is 2.8 while that of Eastside Medical Center and U.S. Median hospital is 3.8 and 3.3 respectively. Raising markup will help raise the hospital's

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