Denver Health Network Case Study

824 Words4 Pages
Case 10 Denver Health Network Background Denver Health Network (Network) is a newly created subsidiary of the Denver Health System (System). The Network consists of five medical group practices. While it was originally placed in a for-profit subsidiary, concerns over Stark Law and the low profit lead to the System placing the Network in a newly created not-for-profit subsidiary. The practices include both primary and specialty physicians with an emphasis on obstetrics/gynecology, surgery, pediatrics, and psychology. Physicians are administratively organized in five groups. Each physician practices at only 3 different locations. The Network is an essential part of the System even though the profit of the Network is minimal. The Network generates a large amount of indirect income with patient referrals and outpatient facility use. Varying ancillary services are either limited at the Network force patients to use other System facilities or are best performed at the Network locations. The ancillary services provided at the Network is done so for one or more of the following reasons; lower cost, increased physician efficiency, and improves patient convenience. The Network has decided to add ultrasound services at three locations. Approaches Alternative 1 involves the purchase of an ultrasound machine for three locations for a total of three ultrasound machines. Patients schedule appointments at the clinic they are using for preset times and days. One ultrasound technician works all three locations. Alternative 2 involves the purchase of one ultrasound machine and one van. The machine would be mounted in the van and driven by the technician to the three locations. Patient scheduling would be the same as alternative 1. Assumptions The Network is assuming that under both alternatives the total procedures done annual would be the same approximately

More about Denver Health Network Case Study

Open Document