Job Smart System’s API model of Assessments, Planning, and Implementation can assist merger efficiencies and reduce the employee stress through clear strategies that support MSA's as they progress through their evolution to an merged system.
Newly merged hospital networks tend to evolve through five stages. These include
1. Loose affiliation.
2. Administrative (e.g., marketing, human resources) service consolidation.
3. Cultural integration, particularly of physicians.
4. Clinical (e.g., cardiology and other specialties) service consolidation.
5. Closure of inefficient and redundant services.
Job Smart System uses the Assess, Plan, and Implement Model to
1. Strengthen staff to service affiliations with clear competency based job descriptions for each management, clinical, and facility area
2. A. Strengthen Human Resources consolidation with software supports to recruitment, selection, and retention of staff in key areas of services with tiered teams. B. Strengthen administrative consolidation of marketing and public relations and finance and information services.
3. Strengthen the cultural integration of staff with diversity training on OLD MEETS NEW (JSS Training) organizational norms
4. Support the clinical services consolidation with time management, ergonomic analysis, and environmental design
5. Support closure of inefficient and redundant services with planned implementation.
Matching the Mission
Using Job Smart Systems Assess, Plan, and Implement strategy specific missions can be evolved from
Horizontal mergers involving freestanding hospitals, acquisitions involving hospital chains, the formation of hospital networks, joint ventures, joint operating agreements and strategic alliances
To likely efficiencies associated with horizontal integration and with vertical integration between health insurers, hospitals and physician groups
Internal to individual organizations Job Smart System can Assess
- Duplication of services in all management, clinical, and facilities areas.
- Pricing baselines by determining hospital revenue and dividing it by the total number of inpatient days to get a measure of price of inpatient hospital care
- Quality of Care and Pricing: Using both the DRG and MDC classification systems: the diagnostic related group, or DRG, for individual medical procedures, and the major diagnostic categories (caesarian sections and cardiovascular surgeries) and MDC, that lumps closely related DRGs into one group of related services (diseases and disorders of the digestive system, nervous system and circulatory system) to assess the effect of pricing and patient quality of care on solvency
- Hospital overhead load
- Savings for combined operations (physical plant and supplies)
- Savings on administrative expenses Patient Administrative /HMO Costs
Plan
1. Management Improvements for Human Resources, Marketing and Public Relations, Tiered Management Teams and Employee staffing administrative services for finance and information systems.
2. Elimination of duplicate services that have high physical plant overhead that requires duplicative staffing, technology, and equipment
3. Information systems needed to achieve true integration
4. Hospital Utilizations
5. The competitive effects of joint ventures among hospitals to sell a broad geographic network product to statewide and regional insurers.
Implement
1. Use of staffing and physical plant changes in the way care is delivered in order to engender customer loyalty
2. Physicians and hospitals commitment to work under capitation and the fundamental incentives of delivering quality patient care
3. Consolidation of operations to spread fixed costs over a greater number of patients which brings average costs down
4. Market power in the face of managed care companies who are consistently trying to negotiate lower prices
5. The competitive effects of joint ventures among hospitals to sell a broad geographic network product to statewide and regional insurers.
Transitional Milestones
1. Present the results of our analyses to staff attorneys and economists at the Federal Trade Commission, the Department of Justice (data for anti-trust questions on adequate competition in the post-merger world), and state attorneys general and state departments of insurance
2. Write reports that demonstrate the likely efficiencies associated with horizontal integration and with vertical integration between health insurers, hospitals and physician groups
3. Work with hospital boards and state agencies on the types of hospital mergers that are permitted under certificate of public advantage legislation and on the type of monitoring and regulation that would be required post-merger