MMC Case Study
Major Problems and Secondary Issues
Organizational Strengths and Weaknesses
Alternatives and Recommended Solution
Evaluation
In the early 1990's a new Medicaid managed care company, MMCC, set up shop in the neighborhood right across the street from a major medical center in downtown Baltimore that served many poor patients. The company seems to have embarked on a strategy to maximize its revenues without providing a value to their patients. They are compensated when they enroll new patients and thus they have an incentive to grow their client base. However, they are expected to provide services to the patients under their care. MMCC has taken steps to create bottlenecks for the patients to receive healthcare services so that they can maximize short-term profits.
Major Problems and Secondary Issues
All companies must have a strategy that creates a return on investment for their stakeholders. Some companies focus on maximizing profits in the short-term while others attempt to create sustainable growth models. MMCC is definitely focused on short-term profitability and without consideration of their value proposition to their clients. There current strategy is ultimately unstainable and operations will likely cease at some unknown point in the future. Although the model may produce profits in the short-term, the organization is not adding value to their community and eventually it is likely that the system will be revised to address the inefficiencies that are being created relative to the broader set of stakeholders.
Your Role
In this role I would act as an external consultant to the MMCC. The advantage of being a consultant in this case would stem from the ability to put the organization's operations in a broader context of their role in their local community. This position would also allow for the recommendation of a more sustainable business strategy.
Organizational Strengths and Weaknesses
The MMCC organization presumably already has some existing capacity built to serve the community. However, as opposed to making their operations more efficient, the organization has focused on their...
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