BostonChildren’s Hospital has been making profits continuously. Accordingto Weisman (2014) Boston Children’s Hospital earned the highestrevenue in the state of Massachusetts in 2014 after making $ 157.7million revenue compared to its competitors (such as North ShoreMedical Center) that made a loss of up to $ 20.3 million. Apart frommaking money through operations, the hospital collect funds throughthe Boston Children’s Hospital Trust, where its largest source offunds is individual donors followed by gifts from other foundationsas shown in Appendix 1.
Organizationalhierarchy and leadership style
BostonChildren’s Hospital has an established structure through whichinstructions flow from the executive to the junior staff. The topleader of the hospital bears the title “president” or the “chiefexecutive officer” who is responsible for the overall management ofthe organization. The CEO is assisted by the executive vice presidentwho is in charge of health affairs and also acts as the chiefoperating officer. Below the executive vice president are two seniorvice presidents, several executive directors, heads of departments,divisional heads, and junior staff (Boston Children’s Hospital,2015). Although Boston Children’s Hospital has a hierarchicalstructure, its management has adopted an inclusive leadership style,which means that all members of staff take part in the process ofdecision making.
BostonChildren’s Hospital is among the largest pediatric care facilitiesin the U.S., which employs about 1,025 medical doctors, 384scientific staff, about 922 interns and residents, 1,596 nurses, andclose to 9,000 full-time as well as part-time junior staff (BostonChildren’s Hospital, 2015). In spite of being a large health carefacility, its hourly compensation ($ 14.00-17.00) is quite lowcompared to the industry average, which is $ 23.01-40.08 per hour(Kaplan University, 2015). Being a medical training and teachingcenter, Boston Children’s Hospital has several employee trainingprograms that seek to enhance their skills and ability to deliverquality care. Most of these training programs are designed forinterns and resident members of staff, who play a critical role inhelping the hospital, address the challenge of staff shortage. Inaddition, Boston Children’s Hospital acts as an equal employmentemployer, where people are recruited on merit irrespective of theirsocial characteristics, such as gender, disabilities, or age (BostonChildren’s Hospital, 2015).
Althoughthe shortage of employees has not been an issue of concern at thehospital in the past, the Boston Children Hospital is currentlyexperiencing a shortage of qualified pediatricians, physicians, andregistered nurses (Schell, Lavieri, Toriello, Martyn & Freed,2014). This shortage has resulted in long working hours for theavailable employees. Boston Children’s Hospital experiences minimumconflicts with its members of staff, but the issue of shortage ofemployees coupled with long working hours could reduce the motivationof the current workforce in the future.
Legaland ethical issues
TheBoston Children Hospital has been engaged in several legal battlesfor different reasons. For example, some parents have accused thehospital of detaining their children against their will. In one ofthe recent cases, Justina Pelletier, a 15 year old girl, was retainedagainst parents will after the health care professions diagnosed herwith a mitochondria disorder and the court was the only solution tothe child released (Tate, 2014). The hospital has also been accusedof failing to protect the privacy of its clients. In 2015, BostonChildren’s Hospital was charged a $ 40,000 fine following a databreach that affected more than 2,159 clients (McGee, 2014). Thebreach occurred when an unencrypted laptop was stolen from thehospital’s premises, which was an indication of negligence on thepart of the hospital’s management. Several parents have raisedcomplaints against the hospital for abduction as well as thekidnapping of their children. These ethical and legal issues aredetrimental to the image and the future growth of the hospital.
of technology as well as an information system
BostonChildren’s Hospital was among the first pediatric health carefacilities to implement a fully integrated information system in theU.S. The hospital`s information system was integrated from a set ofinterrelated divisional applications, such as a scheduler, clinicalorder module, and the medical records manager (McGee, 2014). Thismotivated the hospital to develop a comprehensive electronic healthrecords management system that helped the management in enhancingefficiency within the hospital. In early 2015, Boston Children’sHospital adopted a computational Health Informatics Program, which isa computer-based program used in enhancing staff training andresearch (Boston Children’s Hospital, 2015). The program alsofacilitates faster information processing as well as efficientcommunication within the hospital. Moreover, the hospital uses robotsto perform different tasks (such as surgery) in a more accurate andfaster way.
Thereare three industry environmental factors that might threaten thegoing concern of Boston Children Hospital and other pediatric carecenters. First, the shortage of health care providers, especially thequalified physicians and pediatricians, is a global challenge thataffects all health care organizations. For example, it is estimatedthat the health care industry in the U.S. will experience a shortageof 46,000-90,000 physicians by the year 2015 (Japsen, 2015). Thiswill reduce the hospital’s capacity to deliver quality care.Secondly, modern health care organizations are competing on the basisof the latest technology, which means that organizations that willfail to adopt more efficient innovations will face the risk ofclosing down out of stiff competition. Moreover, a persistentincrease in the per capita cost of delivering health care services isa significant threat to pediatric health care centers (Japsen, 2015).This trend can be attributed to the high cost of modern technologyand the high rate of inflation that has increased the cost ofequipment and facilities used by hospitals. A combination of theseindustry challenges might affect the rate of growth and profitabilityof Boston Children’s Hospital in the future.
Corporateand business strategies
Theits mission statement, Boston Children’s Hospital intends to offerthe highest level of quality care, become the leading source ofdiscovery as well as research, and enhance the overall well-being ofchildren and their families. The hospital has two major goals, whichinclude establishing partnerships with community-based organizationsin order to help Boston address the most pressing medical challengesand providing services that benefit children locally and result in asystematic change (Cammisa, 2014).
Theoverall corporate strategy adopted by Boston Children’s Hospitaldirects the organizations towards a future growth in terms of anincrease in the volume of clients and geographical coverage. Thehospital plans to growth through the construction of new facilitiesin new cities and expand the current facilities (Boston Children’sHospital, 2015). In addition, the hospital plans to grow through theacquisition of established health care facilities. For example, thehospital will acquire Children’s and Women’s Physicians ofWestchester LLP in 2015 (McCluskey, 2015). All these growthstrategies are within a single line of business, which is thedelivery of pediatric care.
AlthoughBoston Children’s Hospital has not managed to become the costleader in the region, it has made a significant progress in ensuringthat its services are affordable to all people. This has beenachieved through an effective collaboration with insurers operatingin the state of Massachusetts in order to keep prices low and theoverall cost of care below the medical inflation (Boston Children’sHospital, 2015). In addition, Boston Children’s Hospital is anon-profit making organization, which helped it to deliver care toits clients at an affordable price.
BostonChildren’s Hospital uses two functional strategies to attaincompetitive advantage in the health care sector. The first strategyis innovation, where all innovative strategies are based on the useof the modern technology. For an instant, the hospital has developeda platform that allows all members of staff to access informationabout the bed management and electronic records in real time from anycampus (McCluskey, 2015). Boston Children’s Hospital demonstratedits commitment to innovation in 2009 by establishing a well staffeddepartment referred to as “Technology and Innovation DevelopmentOffice” that helps the organization adopts the most relevanttechnology in the market, thus enhancing its competitive advantage(Boston Children’s Hospital, 2015).
Controlsfor compensation and reward system
BostonChildren’s Hospital has a compensation that is used to determinesalaries and benefits for employees in different categories. Forexample, the policy indicates al benefits (including medical cashout, health insurance, disability insurance, and dental insuranceamong other benefits) that employees in each category are entitledto, which means that employees will know when their right to faircompensation are violated (Boston Children’s Hospital, 2015).
BostonChildren’s Hospital makes the highest revenue in the state ofMassachusetts compared to its competitors. Although the hospital hasan established organizational structure, it adopted an inclusiveleadership style that allows the management to integrate thecontribution of all stakeholders when making decisions. The hospitalhas more than 10,000 employees who undergo regular training to ensurethat they are able to offer quality services and remain up-to-date.Boston Children’s Hospital has experienced minimal conflicts withits employees, except the ongoing increase in the workload that isassociated with the shortage of health care professionals, especiallypediatricians. The hospital has fought several legal battles thatresulted from kidnapping of children and cases of data breach. Themanagement has been investing heavily in the modern technology withthe objective of increasing efficiency, quality, and competitiveadvantage. However, the future growth of the hospital might beaffected by industry challenges that include an increase in the costof health, the demand for modern technology, and the global shortageof experienced health care professionals.
Themission of Boston Children’s Hospital is to offer quality care,invest in research, and enhance the well-being of children as well astheir families. The current corporate strategy will help the hospitalto grow by establishing new health care facilities, expanding thecurrent ones, and acquiring others. The ability of Boston Children’sHospital to deliver care at a low cost has increased its competitiveadvantage. In addition, innovation has helped the hospital insustaining the current competition in the health care sector. Anestablished compensation policy gives employees an assurance thatthey will be fairly paid for the services they deliver to clients.
Ball,M., Weaver, C. & Kiel, J. (2013). Healthcareinformation systems: Cases, strategies, and solutions.Berlin: Springer Science and Business Media.
BostonChildren’s Hospital (2015). About us: Our leadership. BostonChildren’s Hospital.Retrieved October 20, 2015, fromhttp://www.childrenshospital.org/about-us/our-leadership
Cammisa,L. (2014). BostonChildren’s Hospital’s approach to community health: Using: Usingprograms to achieve systematic change.Boston: Community Asthma Initiative.
Japsen,B. (2015). U.S. doctor’s shortage could hit 90,000 by 2025. Forbes.Retrieved October 20, 2015, fromhttp://www.forbes.com/sites/brucejapsen/2015/03/03/u-s-doctor-shortage-could-hit-90000-by-2025/
KaplanUniversity (2015). Whatis the average income of a pediatric nurse?Lauderdale: Kaplan University.
McCluskey,P. (2015, May 21). Children’shospital set to expand.Boston: Boston Globe Partners.
McGee,M. (2014, December 22). BostonChildren’s fined for breach.Princeton, NJ: Health Care Information Security.
Schell,J., Lavieri, S., Toriello, A., Martyn, K. & Freed, G. (2014).Strategicmodeling of the pediatric nurse practitioner workforce.Ann Arbor, MI: University of Michigan.
Tate,K. (2014, February 19). Exposed: Boston Hospital takes custody ofmultiple children against parent’s will. Truthin Media.Retrieved October 20, 2015, fromhttp://truthinmedia.com/exposed-boston-childrens-hospital-takes-custody-of-multiple-children-against-parents-will/
Weisman,R. (2014, May 14). Mass hospital profits rose last year, report says.BostonGlobal Media Partners, LLC.Retrieved October 20, 2015, fromhttps://www.bostonglobe.com/business/2014/05/14/massachusetts-hospital-profitability-rose-last-year-but-lost-money-according-state-report/VaQ6tOLGC0jBvIwKjdPYbL/story.html
Source:Boston Children’s Hospital (2015)