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

Emanuel Medical Center - Case Study ExampleWhile this was a public relations problem in the short term, the issue pointed let on the larger systemic problems that exist at EMC. The ED has increasingly become a cost center, and staff morale and quality of care is reflected in this dilemma.The indispensability Medical Treatment and Active 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 aforementioned(prenominal) time that the numbers of under and uninsured people in California began to escalate. Lacking primary coil care physicians, the uninsured have made the ED the primary clinic for their health care. This further exacerbated EMCs financial position from two aspects. First uninsured people were using the most expensive delivery system available, which overloaded the contentedness 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 The outdated ED was in operation(p) well in excess of capacity, which put an additional strain on nurse availability, response time, and specialty services.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 occupation 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 resembling era, reimbursements from Medi-care, 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 wedge on EMC. Specialties and high-tech procedures are largely not available at EMC, and this business goes to the competition. The financial reality of EMC run at a loss for the prehistorical 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 impertinent operating environment. All of these factors increasing expenses, reduced reimbursement, competition, and escalating salaries have all combined to form the perfect storm. The only bright spot on the balance canvass has been the investments that EMC made in the 1990s, which managed to keep them operating into the 21st century. In fact, without these investments the fin ancial 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 current 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