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The Quality Improvement Customers Didn’t Want

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Written Analysis and Communication

Individual Assignment No 2

Case Analysis Report on ‘The Quality Improvement Customers Didn’t Want’

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Institute of Management, Nirma University

August 14, 2012

Executive Summary

Quality Care is a health maintenance organization and has been occupying third position in the health care industry for quite some time. The recent trend of installing computer systems in the health care organizations has put Quality care in a confusing state where it has to decide whether to follow the trend or stick to the traditional methods.

Quality Care has to look out for customer satisfaction and retention, quality of the service provided and market position. It can install the systems at a few locations for testing, or conduct surveys in organizations where the systems have already been installed, or provide a comfortable working environment or simply avoid the new technology.

This can be achieved by simply adopting the new computerized systems at a few locations and after testing them implementing at the rest of the locations.

Situational Analysis

Quality Care, a Health Maintenance Organization (HMO), is currently at the third position in the Health Care industry preceded by Health Care One in the first position and MediCenters in the second position. Quality Care, just like Health Care One, is a staff model HMO which means that its physicians are direct employees of the HMOs and are salaried. Its yearly revenues are around $450 million with profits of $8.1 million after expenses. This shows that the profit is less than 2%of the revenues and hence it is not a high profit making organization.

Recently, Health Care one has adopted a new computer system which allows its patients to be lead by a computer system through a set of questions about their current medical condition, the reason for their visit and so on. All this information is interpreted electronically and the patient is then guided to the appropriate staff person for consultation. MediCenters also followed suit and adopted the computerized system in its organizations. This indicates the level of competition in the health care industry and the need to be up to date with the technology. The Health care industry is majorly privatized and has monetary tie ups with various insurance companies and government organizations. Health Care industry is one industry which requires more personal care compared to other service industries such as banks, hotels etc. Hence, adopting the new system can cause the customers to feel that they are losing the personal attention of their doctors or nurses.

Quality Care is thus confused about the adoption of the new computerized system for its organizations. Ginger Rooney, Quality Care’s Vice President of Marketing, firmly believes that based on the surveys conducted the new system would be hated by the customers. However, Ginger did not personally oversee these surveys and hence Pat Penstone, the company’s Chief Information Officer (CIO), was not fully convinced with the results of the surveys. When the company’s employees were surveyed regarding the adoption of the new system, they clearly stated that their work load would reduce and hence they were all in favor of the automation. The company’s Chief Executive Officer (CEO), Allan Moulter, was initially totally against the automation of the existing system. However, the consultant’s presentation made him rethink his decision regarding the computerized systems.

Installation of the new computerized system is a huge investment with no guarantee of future returns. Also, after installation of the new system the staff needs to be trained to use the computers and operate various programs, adding up to the initial investment.\

Problem Statement

Quality Care is faced with the dilemma of adopting the new computerized system.

Objectives

• Stay abreast with technology

• Improve the quality of the service provided

• Customer retention

• Customer satisfaction

• Maintain position in the market

Options

1. Conduct surveys at places where the computerized systems have already been installed.

2. Initially adopt the computerized systems only at a few locations.

3. Make arrangements for a more comfortable working environment.

4. Do not adopt the new computerized system.

Evaluation of Options

1. Conducting surveys at places where the new computerized systems have already been installed provides a feedback of the patient’s liking towards and adaptability of the new system. If the feedback is positive, that is the patients are comfortable and happy with the new system then Quality Care can begin adopting the new system at its organizations. This would eventually help in customer retention and satisfaction.

2. Begin by adopting the computerized systems at a few places only. Now based on the responses obtained from these locations make a decision whether to implement the new system in all organizations or not. This helps to find out whether any changes are required before adopting the new systems in the rest of the places and hence improve the quality of the service provided.

3. Providing for a more comfortable working environment will increase the staff efficiency as well as the readiness of the patients to avail consultation and treatment from Quality Care and eventually lead to customer satisfaction and retention.

4. The company is functioning well even without the new system. However, there might be a time when the government wants all the health care organizations to adopt this system. And hence it would be better to try the new system early and get used to it rather than playing catch up later on.

Decision

The decision is to initially adopt the computerized systems only at a few locations. This provides an option where the new system can be tested and if successful only then be adopted in the rest of the locations.

Action Plan

Step 1: Conduct surveys and find out the best possible sample location which would provide reliable results for the adoption of the new computerized system.

Step 2: Based on the survey identify a few locations and start collecting funds for buying the new equipments.

Step 3: After the required amount of cash has been collected, buy the necessary equipments.

Step 4: Facilitate the installation of the new computerized system.

Step 5: After installation appoint an agency for training the staff to use the computers.

Step 6: In case of emergency, make arrangements for manual functioning of the system.

Contingency Plan

If the plan fails or there are some issues in the implementation of the first plan then simply do not install the new computer systems in any further locations. Even try to remove the newly installed systems from the various locations and restore the original system.

To Whom It May Concern:

I, ____________ hereby declare that this assignment is my original work and is not copied from anyone/anywhere. if found similar with sources, I take complete responsibility of action taken thereof by WAC Team.

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