Tufts / NEMC

Tufts / NEMC

Describe the health care environment in Massachusetts.

Massachusetts is known for education technology and computer throughout the world and is also known as the home for many American medical centers. In Massachusetts and other hospitals a debt was experienced in 1970 and 1980s as the older facilities were renovated, services were expanded and new technologies were introduced. Massachusetts also experienced a decrease in the discharges and hospital births which resulted in decline in the hospital discharges from year 1991 to 1996. It also affected the outpatient surgeries of customers. During early 1990s, Federal Government under funded Medicaid and Medicare and the insurers also consolidated while leaving behind Harvard Pilgrim Health Care, Tufts Health Plan and Blue Cross/BlueShield.

During the mid 1990s, capitated payments were used which were based on flat rate which was advertized as a method of control costs and covered lives in the system (Landro, 2007). During 1991, the deregulation of hospitals are deregulated which were regulated since 1981. In 1994, the merger of Brigham, Women's Hospital and Mass General Hospital took place. HMOs at that time moved to lower payments for providers as efficiency and volume became important. Hospitals also invested in renewal of physical plants and technology which attempted to increase efficiencies. In Massachusetts, health care was more expensive as the pharmaceutical costs, higher labor and technology were high.

There were nationwide trends followed in the Massachusetts health care insurance plans during 1990 when the merger of three companies took place. This merger resulted in the increase of power in the marketplace and their collision helped in managing the health plans. This resulted in providing more oversight over medical and costs services and lower payments. Three of the companies expanded regionally to attract the large national and regional companies for offering their plans to the employees. It was also realized that the health care services including doctors and hospitals are considered to be the future financial success. The deregulation of hospitals took place at that time which resulted in threatening the financial viability of hospitals and moving them to more efficient practices which are cost effective.

Describe what was happening within Tufts / NEMC in the 1990s.

The Boston Dispensary, known as the New England Medical center was one of the oldest hospitals in US which were started in 1796 by the generous activities of Paul Reveie and Samuel Adams. Boston Dispensary was considered as the permanent medical facility in New England.

During 1990s, Tufts / NEMC were slow to react with the external environment changes. At that time, debts were accumulating, managing cash flow, market share, losing physicians and were incompetent in meeting the changing processes.

Another problem which was faced by Tufts/NEMC included when Harvard Pilgrim Health Care stopped as high cost were faced by the hospital and it resulted in the lowering volume and increasing cost of each patient (Swayne, Duncan, Ginter, 2009). As a result of this situation many physicians CEOs placed more emphasis on care rather than business ...