Chapter 2 Case Study

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Case Study - Analyzing Managerial Decisions: Interwest Healthcare Corp. MBA 540 – Managerial Economics May 8, 2014 What are the potential sources of the problem? The staff at Interwest seems to be suffering communication and follow-through problems. On one hand, the hospital staff feels as though Singh is a bureaucrat who does not care about patient services and Singh feels as though the staff do not know the importance of accurate reporting (Brickley, Smith, & Zimmerman, p. 38). When you take a step back and look at the whole scenario, you will also find that both Manzoni and Singh failed to create an action plan, follow through on the problems, and/or train the staff on proper reporting. Without knowing exactly how the conversation went during the summer retreat, one can also assume that the problem with reporting or resolution was not communicated in an effective manner. Did Singh and Manzoni acknowledge the hospital staff’s concerns with patient care? Did they address how to accomplish both patient care AND proper reporting? What steps were put into place for proper reporting? Was there any follow through on the data entry? In my opinion, I feel that the “main” potential source of the problem is the opportunity cost of each group. Who values what more? In defense of the hospital staff, they feel that spending more time entering records will take away from the quality of care towards the patients. Whereas Singh values proper recordkeeping in order to comply with all government and audit regulations so that they are able to continue receiving funding and maintain their positions. In truth however, they are both correct on this and have to find the proper balance between patient care and accurate reporting. However, no plan will be effective if Singh or Manzoni do not follow through with checking the accuracy prior to the problem becoming out-of-hand.
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