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Related Experiment Videos

Can Oxford heal itself?

L Smith

    Fortune
    |April 2, 1999
    PubMed
    Summary
    This summary is machine-generated.

    A health maintenance organization (HMO) faced significant financial setbacks due to major computer system failures. Addressing these technical issues is ongoing, with a focus now shifting to rebuilding trust with investors and healthcare providers.

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    Area of Science:

    • Health Management
    • Information Technology

    Background:

    • Rapidly expanding health maintenance organization (HMO) experienced severe operational disruptions.
    • Significant computer system failures led to widespread negative impacts.

    Purpose of the Study:

    • To investigate the consequences of major IT infrastructure failures in a growing HMO.
    • To outline strategies for restoring stakeholder confidence post-crisis.

    Main Methods:

    • Analysis of the reported computer system problems and their immediate effects.
    • Review of the remediation efforts underway.
    • Assessment of the challenges in regaining trust from shareholders and doctors.

    Main Results:

    • The HMO's stock value declined sharply following the disclosure of computer issues.

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  • Technical problems are in the process of being resolved.
  • Re-establishing trust among investors and medical professionals presents a significant post-resolution challenge.

    • Conclusions:

    • Major IT failures can have profound financial and reputational consequences for healthcare organizations.
    • Effective crisis management requires not only technical solutions but also strategic communication to rebuild stakeholder confidence.