Cikarang Hospital had served its community for 40 years, and was the top-ranked hospital in the region for surgery, trauma, neonatal care, and teaching, as evidenced by its status as the official emergency facility for visiting head of states. It had 274 beds, employed 1,652 staff, and served over 22,000 patients each year with an annual budget of over CU 378 million. The hospital received 100% of its funding from a private foundation, and was governed by a BOD, and because of that, patients paid for their service through a combination of insurance coverage under a Patient Welfare Program. This Program was jointly funded by the foundation, donations, and any hospital surpluses. The charitable mission of the foundation was to improve living condition and opportunities for the million of people with no distinctions. Despite Cikarang's not-for profit status, it operated like a competitive enterprise whose revenue figure was compared of cost recovery from patients and their insurers. So, the challenge was to extract maximum benefits for each dollar of annual funding from the foundation. Quintifiying those metrics objectively was an important part of the challenge for the organization. Cikarang's CEO was a CPA, and was recruited in 2018 from a for-profit hospital in Denver, where he had earned a reputation for disciplined cost control. This skill set appealed to the BOD because it had the potential to broaden the number of positive patient outcomes through astute cost management. Morresby where Cikarang at, had a population of 4.4 million in , 7.8 million including metropolitan area, and 10.3 million with the townships. The city and townships were economically varied, but with an average GDP of CU 249,900. Morresby residents wealth was higher than that of any other area in Micronesia. In particular, the city's middle class had grown rapidly, which meant that many residents could afford levels of health care their parents was. Although the buying power of Morresby residents had increased, only 20% of Guinea had private health insurance coverage. Government spending on health care comprised less than half of total health expenditure. Approximately 70% of all doctors and most specialist worked only in the private sector, 30% served the public sector. Competing hospitals in the region operated on a for-profit basis, so they were able to raise capital from investors to expand and earn profits from operations to pay dividends. Cikarang's not-for-profit model meant that it needed to survive independently, any surplus from one departments was used to offset care in another department. Competition was stiff in the health care industry, and as population's wealth grew, so did the health care marketplace. Competitors generally offered cheaper services with fewer variations in price, these organizations provided a lower quality of care and fewer perks in terms of comfort, such as enhanced privacy for mothers. The maternity ward pricing and services offered by competitors for natural births without complications varied across the city. All but Morresby Hospital offered bundled pricing for labour with no complications. Hospitals in the best sections of the city tended to have the newest facilities and the highest process. Vader's Hospital was housed in a modern building in the affluent Gangnam. In contrast, Women's Hospital and Metro Hospital were located in low-income areas. All competitors except Vader's were configured for efficiency, with four patients per room, which rendered them less appealing to the growing demand for privacy among maternity patients. Privacy was a core driver of perceived luxury. Which Cikarang's higher process could be justified by its premium level of care, insurance providers often scrutinized and debated its long bills before mothers could be discharged. These situations put significant financial strain on patients, undermining Cikarang's commitment to the best patient experience. Given the lack of government sponsorship, one of the first priorities of families was the purchase of private health insurance. Health insurance required consumers to pay a steady monthly premium even if there were no claims. Policy holders were still responsible for some portion of the cost, often referred to as deductibles. This meant that patients, were still sensitive to process and were worried about unexpectedly bills. 70% of Cikarang's patients were covered by private health insurance, which typically reimbursed the patients for up to 70% of the cost of care received. Management had an ongoing struggle with insurance providers to receive full payment for Cikarang's premium level of care and patient comfort. Cikarang included every supply item on the invoice, which was one reason for the lengthy patient bills. Question: Explain the definition of a value chain and its parts and describe its application in the Cikarang Hospital
Cikarang Hospital had served its community for 40 years, and was the top-ranked hospital in the region for surgery, trauma, neonatal care, and teaching, as evidenced by its status as the official emergency facility for visiting head of states. It had 274 beds, employed 1,652 staff, and served over 22,000 patients each year with an annual budget of over CU 378 million.
The hospital received 100% of its funding from a private foundation, and was governed by a BOD, and because of that, patients paid for their service through a combination of insurance coverage under a Patient Welfare Program. This Program was jointly funded by the foundation, donations, and any hospital surpluses. The charitable mission of the foundation was to improve living condition and opportunities for the million of people with no distinctions.
Despite Cikarang's not-for profit status, it operated like a competitive enterprise whose revenue figure was compared of cost recovery from patients and their insurers. So, the challenge was to extract maximum benefits for each dollar of annual funding from the foundation. Quintifiying those metrics objectively was an important part of the challenge for the organization.
Cikarang's CEO was a CPA, and was recruited in 2018 from a for-profit hospital in Denver, where he had earned a reputation for disciplined cost control. This skill set appealed to the BOD because it had the potential to broaden the number of positive patient outcomes through astute cost management.
Morresby where Cikarang at, had a population of 4.4 million in , 7.8 million including metropolitan area, and 10.3 million with the townships. The city and townships were economically varied, but with an average GDP of CU 249,900. Morresby residents wealth was higher than that of any other area in Micronesia. In particular, the city's middle class had grown rapidly, which meant that many residents could afford levels of health care their parents was.
Although the
Competing hospitals in the region operated on a for-profit basis, so they were able to raise capital from investors to expand and earn profits from operations to pay dividends. Cikarang's not-for-profit model meant that it needed to survive independently, any surplus from one departments was used to offset care in another department. Competition was stiff in the health care industry, and as population's wealth grew, so did the health care marketplace.
Competitors generally offered cheaper services with fewer variations in price, these organizations provided a lower quality of care and fewer perks in terms of comfort, such as enhanced privacy for mothers. The maternity ward pricing and services offered by competitors for natural births without complications varied across the city. All but Morresby Hospital offered bundled pricing for labour with no complications.
Hospitals in the best sections of the city tended to have the newest facilities and the highest process. Vader's Hospital was housed in a modern building in the affluent Gangnam. In contrast, Women's Hospital and Metro Hospital were located in low-income areas. All competitors except Vader's were configured for efficiency, with four patients per room, which rendered them less appealing to the growing demand for privacy among maternity patients. Privacy was a core driver of perceived luxury. Which Cikarang's higher process could be justified by its premium level of care, insurance providers often scrutinized and debated its long bills before mothers could be discharged. These situations put significant financial strain on patients, undermining Cikarang's commitment to the best patient experience.
Given the lack of government sponsorship, one of the first priorities of families was the purchase of private health insurance. Health insurance required consumers to pay a steady monthly premium even if there were no claims. Policy holders were still responsible for some portion of the cost, often referred to as deductibles. This meant that patients, were still sensitive to process and were worried about unexpectedly bills. 70% of Cikarang's patients were covered by private health insurance, which typically reimbursed the patients for up to 70% of the cost of care received.
Management had an ongoing struggle with insurance providers to receive full payment for Cikarang's premium level of care and patient comfort. Cikarang included every supply item on the invoice, which was one reason for the lengthy patient bills.
Question:
Explain the definition of a value chain and its parts and describe its application in the Cikarang Hospital
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