Financial and Ethical Impact Analysis
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Financial and Ethical Impact Analysis
Heather Koppelman
MHA 506
Ricci Rizzo
November 15, 2021
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Financial and Ethical Impact Analysis
An organization with goals, durable leadership and diligent employees can still fail
without organizational structure. While organization is necessary for success, the structure can
influence the process. An organization’s structure can direct the level of project management,
who makes the project decisions, the communication of shared goals and tasks and how the
project manager works with his team (Richards, 2021).
Mission and Objectives
East Chestnut Regional Health System strives to be on top. Their mission is to make a
difference by improving quality of life through excellence in service. Their vision is to be a leader in
the development and distribution of superior health and human services. The values of ECRHS
include patients; employees, quality and innovation, growth and expansion, communication,
collaboration and integrated care. Strategic objectives establish the boundaries for what your
organization’s effort must focus on (Olsen, 2021). For ECRHS, their strategic objectives include;
improving the women’s service by improving the standards for women’s care, recruiting new
physicians to decrease the average age of the physician staff and improve the service lines across
the whole system and the grand opening of their new Oncology Center.
Organizational structure and culture
The East Chestnut Regional Health System was created 10 years ago through a merge
of East River Medical Center (ERMC) Northern Mountain Hospital Consortium (NMHC) and
Archway Hospital (AH). After the merge, the CEO of AH became the new President and Chief
Executive Officer of ECRH. With only having experience with smaller organizations, he began
to change the culture of the health system by making decisions on a decentralized basis,
allowing AH to do things on their own with little or no supervision. The new Chief Operating
Officer (COO) who was now put in charge developed a poor reputation, with dishonesty. The
merger came about due to many challenges that each organization separately was facing.
Each organization brought in challenges and strengths to complete the health system. Despite
these challenges, ERMC is the only level 1 trauma facility with an airlift within the region. At
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Financial and Ethical Impact Analysis
ERMC, their inpatient bed volume goes above the competitors in the area. During this time, the
President and CEO of ECRH became careless in his role leaving ECRH weak in the market
share and productivity. After his retirement, a new President and CEO was brought in with
extensive training and a lot of knowledge.
Current marketing strategies
The health care industry is an extremely competitive atmosphere. Healthcare does just include the
patients, but also the products and services offered from the healthcare system. ERMC offers
advanced technology on an excellent level of proficiency. They also feature a Level 1 Trauma Center
with an air service and have a total number 550 beds. As a full health system, ECRH recently
purchased 100 acres of land which will soon house the new Oncology center as well as a free-
standing emergency center, other physician practices, imaging centers and surgical centers.
Current financial analysis
Currently, ECRH is receiving profits from ambulatory visits and services as well as the
oncology services. Ambulatory visits and services is up 3% because of the recently employed
younger physicians now in the health system. This new group of physicians have become a great
focal point for ECRH and actively refer their patients back to the health system specialists. Oncology
services have also increased their profit. With the development of the new Oncology Center coming
to the area, the referrals are coming in for their physicians, which is bring in more patients. With the
new land that was purchased, the ECRHS is expending for the good. Bringing in more women’s
services will also increase profit for the whole organization. Also, closing the Behavior health hospital
and AH in the long run will cut the costs of keeping it opened and allow for more profit from other
facilities.
Competitive Advantage
ECRH has a lot of competition within the community. Their biggest advantage is that ERMC
is a Level 1 trauma center with air lift services. They also offer the best technology with a excellent
level of ability. Another competitive advantage is the 100 acres of land that was just purchased in
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Financial and Ethical Impact Analysis
order to expand with a new oncology center, free standing emergency center and more advanced
women’s care services.
Current target market
For ECRHS, the organizations current target market are the consumers in the following
counties: Chestnut, Walnut, Butternut, Oak and Maple. Chestnut county is the 6 th most populated
county in the state and has a median age of 37.7 years old. Its racial/ethnic groups include 70.1%
Caucasian, 18.5% African American and 6.5% Hispanic. Walnut county is the 57 th most populated
county in the state and has a median age of 39.8 years old. Its racial/ethnic groups include 89.8%
Caucasian, 7.2% Hispanic and 3% African American. Butternut county is the 65 th most populated
county in the state and has a median age of 39.7 years old. Its racial/ethnic groups include 87%
Caucasian, 9.5% Hispanic and 1.7% African American. Oak county is the 66 th most populated county
in the state with a median age of 46.6 years old. Its racial/ethnic groups include 93.3 Caucasian, 4%
Hispanic and 1.1% African American. Last is Maple County, which is the 79th most populated county
in the state with a median age of 48.2 years old. Its ethnic/racial groups include 90.8$ Caucasian,
7.1 Hispanic and 1% African American. Most consumers from both Oak and Maple counties are
older, having government health plans such as Medicare and Medicaid. These counties are also
ruined with younger consumers who are using drugs, like methamphetamine.
External Environmental Factors
Organizations are unable to control external environmental factors, but they must be able to
respond to them. Each of the external factors can affect an organization both positively or
negatively. The acronym PESTEC is used to help remember the different types of external factors.
Politically, ECRHS has a new CEO/President in town, who is here to help the health system
succeed. Economically, employment in counties like Chestnut County are high, with unemployment
staying low at 4.5%. Technology being offered at East River Medical Center has a high level of
competence and is fully equipped and maintained. Competitively, there is another for profit hospital
in the area, Branford Medical Center which is the largest for profit in the country. Another competition
is the medical school and hospital in Chestnut.
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Financial and Ethical Impact Analysis
References
Olsen, E. (2021). Examples of Strategic Objectives | OnStrategy Resources. Retrieved from
https://onstrategyhq.com/resources/examples-of-strategic-objectives/
Richards, F. (2021). How Organizational Structure Affects Projects. Retrieved from
https://smallbusiness.chron.com/organizational-structure-affects-projects-21868.html
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