Massachusetts General Hospital (Mgh) and Brigham and Women’s Hospital (Bwh)

Martha C. Beary
Situation
Two of the five prestigious t distributivelying infirmarys, Massach use of goods and assiststts superior general Hospital (MGH) and Brigham and Womens Hospital (BWH), were looking into merging delinquent to the affected changes in the U. S. Healthcare System. Their main intention was to load operating costs through the integration of clinical educational activity programs. Areas of cost reductions included payment systems, healthcare network development, research, and at the same time, preserve the quality of their teaching programs and patient care.
Problems
The declining of drive in utilization rates and the threat of primary and secondary go triggered drift to competing hospitals in the community. The changes in political sympathies programs such as Medicare caused a reduction of gross patient service revenue. investigate funding was not covering 100% its own expenses, having to use clinical revenues to cover them and subsequently affecting education programs.
Analysis
Although rise distinguished for their highly specialized tertiary and quaternary care, some(prenominal) hospitals faced similar rate drops in the percentage of employ beds. BWH rate dropped from 88.7% in 1988 to 79.6% in 1993. At MGH the decline was 87.6% in 1988 to 78.4% in 1993 as well.



Because of their high medical cost and deprivation of primary care physicians, 30% of the hospitals revenues were at risk, giving the hazard to other hospitals to provide these services and create price emulation based on Chapter 495. The reduction of gross patient service revenue at MGH and BWH were affected by the changes in government programs such as Medicare, Medicaid and the enactment of chapter 495. These programs along with many insurance companies adopted the Prospective Payment System (PPS) which began monitoring hospital charges and refusing payment for unnecessary services. The hospitals were receiving a standardized payment for each service they provided regardless of the actual inpatient operating costs. This exercise created the need for...If you want to get a full essay, differentiate it on our website: Orderessay



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