On a nice day in June of 1998, Dr . Harry Rubash stood looking at a bookshelf in his fresh office arranging photographs of his family and former co-workers in Pittsburgh. He seemed out his window for the profusion of hospital structures and twisted Boston streets below. It had been a good picture, he thought, of the conditions that faced him in his new position at the Massachusetts General Hospital (MGH). Dr . Adam Herndon, his former colleague at the medical center system of the University of Pittsburgh, acquired brought him to MGH to take above as key of orthopaedics at Ma General Orthopaedic Associates (MGOA).
Herndon himself was fresh to MGH, having recently absorbed as chief of Partners Orthopaedics. 1 Rubash and Herndon faced the threatening challenge of restoring the financial overall health of the suffering MGOA.
The Hospital’s History
In service since 1811, MGH was your third hospital founded in the us and included the 1st orthopaedic support in the country, founded in 1899 by Dr .
Joel E. Goldthwait, a leading in the field. The department a new long history of providing outstanding clinical attention, in addition in order to significant advantages to medical research and teaching. It was an MGH doctor who have first made the finding of a herniated disc. In fact , the annals of orthopaedic literature were filled with disorders that lose interest the names in the MGH doctors who found out them. The prestige of both MGH and the orthopaedic department was well-deserved.
More than a decade ago, the year Rubash and Herndon arrived, the 12 surgeons at MGOA performed over 2, 000 surgeries (see Table A for the number of surgeries performed from 97 to 1999). 2 Kids of methods performed protected
everything from knee arthroscopy to hip replacements, to spinal surgical treatment. The group also a new history of rendering services into a wide array of patients across the socio-economic spectrum. Table B shows the group received revenues coming from patients with private insurance agencies, patients upon Medicare (government insurance pertaining to the elderly) and Medical planning (government insurance for low-income individuals and families), individuals covered by worker’s compensation, and self-pay sufferers (those devoid of insurance). 1 Partners Healthcare was the mother or father company from the Massachusetts Basic Hospital. two MGOA cosmetic surgeons had 252 days of operative time annually.
________________________________________________________________________________________________________________ Professor Jason R. Barro, Kevin J. Bozic, MD (MBA 2001), and Research Associate Aaron M. G. Zimmerman prepared the first version on this case, Performance Pay for MGOA Physicians (A), HBS No . 902-159 which can be being replaced by this type prepared by the same authors. Some names in the case have been changed. HBS circumstances are produced solely as the basis to get class discussion. Circumstances are not meant to serve as endorsements, sources of major data, or perhaps illustrations of effective or ineffective management. Copyright 2003 Chief executive and Guys of Harvard College. To order replications or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business University Publishing, Boston, MA 02163, or head to http://www.hbsp.harvard.edu. No part of this kind of publication may be reproduced, stored in a collection system, utilized in a chart, or sent in any type or simply by any means”electronic, mechanical, copying, recording, or otherwise”without the permission of Harvard Business School.
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