Strategic modelling for health care managers

Area of Science:

• Healthcare Management
• Health Services Administration
• Organizational Strategy

Background:

• A new Health Maintenance Organization (HMO) faces a decision regarding physician staffing.
• The Medical Director proposes hiring three new internists based on perceived patient load.

Purpose of the Study:

• To identify additional factors beyond patient volume that a Medical Director should consider when expanding physician staff.
• To analyze the potential impact of hiring new internists on other HMO needs, plans, and financial condition.
• To outline a corporate approach for evaluating such staffing decisions.

Main Methods:

• The study proposes a framework for comprehensive evaluation, akin to large corporate strategic planning.
• Consideration of financial implications, operational capacity, and alignment with organizational goals.

Main Results:

• Hiring decisions require a holistic assessment, integrating patient load with financial, operational, and strategic considerations.
• A structured, corporate-like approach ensures a more robust evaluation of staffing needs.

Conclusions:

• Decisions on physician recruitment must extend beyond immediate patient demand to encompass long-term organizational health.
• Implementing strategic planning principles is crucial for sustainable growth and financial viability in new HMOs.