In the powerpoint slides, slides 6, 7, 8, 9 and 10 - each question needs to be completed utilizing the Hillside Hospital Case in the PDF
PowerPoint Presentation Activity: Hillside Hospital Deliverable Your analysis should be based on the following: Your audience is the personnel committee. Dr. Wells’ term as Chairman is up and the personnel committee is deciding whether or not to renew his contract. Your analysis will bear heavily upon whether or not he is reappointed. You are being asked to make two cases: 1) That the preponderance of evidence indicates that Dr. Wells performed favorably on responsibility accounting evaluation criteria and, therefore, his contract should be renewed. 2) That the preponderance of evidence indicates that Dr. Wells performed unfavorably on responsibility accounting evaluation criteria and, therefore, his contract should not be renewed. 1 Activity: Hillside Hospital Deliverable Use the evaluation framework to analyze the evidence from the case and develop statements supporting both: 1) The preponderance of evidence favors renewal of Dr. Wells’ contract, AND 2) the preponderance of evidence does not favor renewing Dr. Wells’ contract. The presentation should end with a summary of key reasons for BOTH renewing and not renewing Dr. Wells’ contract. 2 2 Activity: Hillside Hospital Deliverable 3 About your audience, the personnel committee: The personnel committee will make the decision. You are only to inform them by presenting an even case for both favorable. The personnel committee really, really, really does not want to be lectured about responsibility accounting nor be inundated with its jargon. They want to have just the information they need to make a decision regarding reappointment. In fact, they don’t even want to hear or see the term “responsibility accounting.” Your challenge is to use a responsibility accounting perspective without its jargon! Executive review Dr. Wells Hillside Hospital Name of Analyst 4 These three areas were used to evaluate the leadership and management of Dr. Wells. Planning Implementing Controlling Develops goals and provides direction for people and departments Designs a system that aligns goals, responsibilities, and resources Actively leads people and departments towards goals Manages change and culture through the implementation process Uses evaluation system to judge performance of units and people against goals Incentivizes achievement of goals through a system of performance measurement. Evaluation Framework 5 5 Planning Indications of Favorable Performance1Indications of Unfavorable Performance Goal Development & DirectionExample statement 1 (refer to speaker notes): Developed goals that were congruent with organizational commitments Statements 2 through n: Example statement 1: Set system goals that emphasized only one component of the mission. Statements 2 through n: System DesignStatement 1: Statements 2 through n: Statement 1: Statements 2 through n: 1Notes section below presents an elaboration of these items and is an integral part of this deliverable 6 Goal Development and Direction: Indications of Favorable Performance Example statement 1: Developed goals that were congruent with organizational commitments Evidence for example statement 1: Dr. Wells set up the practice plan to favor those who advanced academically, thus if a physician was good at seeing patients but did not have time to write papers, it would reflect in his/her salary because salaries were tied to academic rank. 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): Indications of Unfavorable Performance Example statement 1: Set system goals that emphasized only one component of the mission Evidence for example statement 1: Because salaries were tied to academic rank, physicians who excelled in seeing patients would not realize benefits attributed to those who spent time to do research and write papers. Dr. Wells acknowledged that these physicians salaries will be stuck at their academic rank and their salaries would suffer. 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): System Design Indications of Favorable Performance 1. Statement 1: Evidence for statement 1: 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): Indications of Unfavorable Performance 1. Statement 1: Evidence for statement 1: 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): 6 Implementing PROSCONS Active Leadership Towards GoalsStatement 1: Statements 2 through n: Statement 1: Statements 2 through n: Change ManagementStatement 1: Statements 2 through n: Statement 1: Statements 2 through n: 1Notes section below presents an elaboration of these items and is an integral part of this deliverable 7 Active Leadership towards Goals Indications of Favorable Performance 1. Statement 1: Evidence for statement 1: 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): Indications of Unfavorable Performance 1. Statement 1: Evidence for statement 1: 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): Change Management Indications of Favorable Performance 1. Statement 1: Evidence for statement 1: 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): Indications of Unfavorable Performance 1. Statement 1: Evidence for statement 1: 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): 7 Controlling PROSCONS Measurement of OutcomesStatement 1: Statements 2 through n: Statement 1: Statements 2 through n: Performance IncentivesStatement 1: Statements 2 through n: Statement 1: Statements 2 through n: 1Notes section below presents an elaboration of these items and is an integral part of this deliverable 8 Measurement of Outcomes Indications of Favorable Performance 1. Statement 1: Evidence for statement 1: 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): Indications of Unfavorable Performance 1. Statement 1: Evidence for statement 1: 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): Performance Incentives Indications of Favorable Performance 1. Statement 1: Evidence for statement 1: 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): Indications of Unfavorable Performance 1. Statement 1: Evidence for statement 1: 2. Your additional statements (list as many as you would like): Evidence for statements (each statement needs supporting evidence from the case, such as a quote, action, event, or process): 8 Take-away message goes here In this document, we have attempted to present a balanced picture of Dr. Wells' performance relative to the evaluation criteria set forth. Even though there were strong indications of unfavorable performance, we recommend that Dr. Wells’ contract be renewed for the following key reasons. Statement 1: Statement 2: Statements 3 through n: Recommendation: Dr. Wells’ Contract Should Be Renewed 9 Complete both the recommendation for renewing Dr. Wells’ contract and not renewing Dr. Wells’ contract. You will only be asked to present one side or the other. 9 Take-away statement goes here In this document, we have attempted to present a balanced picture of Dr. Wells' performance relative to the evaluation criteria set forth. Even though there were strong indications of favorable performance, we recommend that Dr. Wells’ contract not be renewed for the following key reasons. Statement 1: Statement 2: Statements 3 through n: Recommendation: Dr. Wells’ Contract Should Not Be Renewed 10 Complete both the recommendation for renewing Dr. Wells’ contract and not renewing Dr. Wells’ contract. You will only be asked to present one side or the other. 10 Questions ? 11 1 Hillside Hospital David W. Young Management Accounting in Healthcare Organizations This has been one of the ugliest things I've ever done—all the personal abuse, just for following the damn rules the university sent down. It is the closest I've come to quitting my job. In September, Dr. Richard Wells, Chief of Medicine at Hillside Hospital in Chicago, Illinois, announced that all full-time doctors in the Department of Medicine were required to join the Medical Practice Plan or leave the hospital premises. In his eight years as chief, Dr. Wells had initiated numerous changes in the department, but never one as controversial as the Practice Plan. Dr. Wells had established the Practice Plan or “trust” two years earlier to serve two purposes. First, it was intended to regulate each physician's professional income to comply with the Kent Medical School Salary Regulation, and second, it would augment the department's income with funds not otherwise attainable. Additionally, Dr. Wells was convinced that, as an academic department of Kent Medical School, the Department of Medicine needed guidelines to ensure a standard of excellence: I think this has to be done in any academic institution. Doctors here are supposed to provide ongoing patient care, carry on research, and teach. Now if you're at all good as a physician, your private practice will skyrocket, and your research and teaching will lose out. It's fun and lucrative to practice medicine, but in a teaching hospital you have other responsibilities, too. BACKGROUND The Department of Medicine was a clinical department of the 85 year-old Hillside Hospital in Chicago. Hillside had been a teaching affiliate of Kent Medical School since 1925. In its many years as a teaching hospital, Hillside had demonstrated a firm commitment to teaching and research as well as patient care. Insisting that the three were interdependent, and together enhanced the quality of medical care, Hillside's medical staff had distinguished itself among hospital teaching staffs. Hillside had become the most popular hospital among Kent medical students and attracted graduates of the top medical schools for its 175 intern and resident slots. As part of the teaching hospital, Hillside's clinical departments were subject to the guidelines of Kent Medical School. Some years ago, Kent's guidelines, which primarily stressed the school’s commitment to scholastic achievement, had had little effect on the school's clinical departments. Dr. Wells explained: For years, we'd had what you'd call a “Gentleman's Agreement” with the medical school