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Medical Care International: turning around
The Journal of Medical Practice Management : MPM
|March 5, 1988
Summary
Medical Care International, a major ambulatory surgery center operator, faced significant losses but implemented management improvements and physician relationship strategies. This turnaround led to profitability in 1986, with future prospects brightened by favorable Medicare reimbursement.
Area of Science:
- Healthcare Management
- Business Strategy
- Ambulatory Surgery Centers
Background:
- Medical Care International is the largest operator of freestanding ambulatory surgery centers in the U.S.
- The company experienced substantial financial losses during its initial expansion phase (1981-1982).
Purpose of the Study:
- To analyze the turnaround strategy of Medical Care International after a period of significant financial losses.
- To identify key factors contributing to the company's subsequent profitability.
Main Methods:
- Divestiture of high-loss centers.
- Implementation of improved management practices in remaining units (1984-1985).
- Strengthening relationships with local physicians.
Main Results:
- A significant turnaround was achieved, leading to the company's first profitable year in 1986.
- Improved operational and strategic management practices were critical to recovery.
- Enhanced physician relations positively impacted performance.
Conclusions:
- Strategic management interventions and physician engagement can overcome significant financial challenges in the healthcare sector.
- Favorable industry trends and Medicare reimbursement policies enhance future growth prospects for ambulatory surgery centers.