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MRI Services

You are the administrator of an established orthopedic surgery practice. Due to higher demand for MRI services resulting from increased population and the relocation of many employers to the local community, the practice is considering a new service for provider-based delivery-a portable MRI, for example. As an administrator, justify the reasoning behind provider-based delivery and develop a complete launch plan, including a budget and consideration of environmental factors. You must determine how data will be used to support the new service, and consider human resources issues affecting this new program.

The practice has these issues to consider:

? The local population's payer mix consists of managed care and Medicare patients. Recently, in an effort to reduce health care costs, many managed care companies have reduced the payment for MRI services. At the same time, the practice is facing increasingly stiff competition from other, lower-priced MRI providers. The main advantage of your orthopedic group is its ability to provide high quality medical services that other providers can not match.

? This practice needs to plan for the recruitment and hiring of an experienced radiologist and other highly skilled technical staff to start the MRI services. The tight employment situation makes finding qualified personnel a challenge. Also, after hiring the appropriate staff, it is critical for the administrator to think proactively in order to motivate the staff and use an appropriate appraisal and reward system.

? If the orthopedic surgery practice decides to provide MRI services, the following financial data need to be considered:

o Cost of purchasing an MRI machine: $1,200,000
o Annual cost of hiring new radiologist to provide professional service: $500,000
o Annual maintenance and warranty: $30,000
o Additional office space to accommodate MRI: 5,000 SF; rent is $20/SF
o Hiring four additional technical staff at $60,000 per FTE
o Other operating expenses: $50,000
o Projected number of MRI procedures per year: 10,000

Answer the following questions in the paper:

1. Provide a clear and concise statement of the opportunity to be addressed. The opportunity statement should be no more than two or three sentences and, in many cases, a single, well-crafted sentence is sufficient.

2. Discuss the importance of an administrator's vision in turning the challenge into an opportunity. Identify the organizational structures that would be most effected by this situation and explain the impact on each organizational structure identified.

3. Consider and discuss how the environmental factors such as competition, reimbursement, employment, etc., may impact the opportunity of starting MRI services. Explain the risks or benefits that the practice would face by attempting to capitalize on the opportunity.

4. Explain what human resource plans or initiatives are needed to manage the strategic goals associated with the identified opportunity.

Solution Preview

The response addresses the queries posted in 1760 words with references.

//Before starting the discussion, we have to understand the given scenario in a deep approach. Now there is a necessity to identify the opportunity for the orthopedic surgery practice, so I am giving an opportunity statement and the vision to gain the opportunities from the environment. You can add extra material as per your knowledge. //

Opportunity Statement

The health care firm's strategy would focus on providing high quality MRI service that would reach to different sections of the populations assisting them in improving the healthcare situation. The firm would hire experienced medical experts and highly skilled technical staff for this purpose.

Importance of vision in turning the challenge into an opportunity

Organization in the long run requires a vision that can guide them to the path of success. Organization needs to know exactly where they are headed and what is their standing right now. That's where exactly the role of vision steps in. When the employees are only intimated with the short term goals, they can be easily prone to frustration and discouragement. All the members of an organization need to possess a sense of vision. Employees should be well aware of both our short-term and long-term goals. Employees should be able to review their contribution in the achievement of the goals.

Vision originates from the organization values, experiences, individual reflections and directions. If the employees know that their work is contributing for the achievement of the vision, their work would become more meaningful and they can be easily directed. Vision gives a clear picture of the milestones that the organization wants to achieve. Vision serves as inspirational and guiding source. Vision holds every member of the organization together in the group, organization or movement (The Importance of Vision, 2008).

Through developing a sound understanding of the administrator's vision, the employees would be well versed with the goals of the organization. Each member of the organization can visualize the opportunities in the future, arising by the development of the present. Vision helps to convey the meaning of the goals and make them clear to each department, helping them to understand individual department's contribution to the organizational success. Vision helps the employees to make their way out of the monotony of their work into the world full of opportunities and challenges. Vision enables the administrator to keep the frustrations of the workplace at bay. It helps them to deal with uncertainties arising in the short term as they can envision achievements in the long term. The administrator can pass this ability to each member of the organization.

//Structure of the organization plays an important role in developing the strategies to gain the opportunities and follow the vision. We have to understand about all the organization factors related to the structure that directly affects the strategies and policies of the organizations. The next material will be well enough for you to understand the organizational structure and its impact. //

Impact on Organizational structures

The organizational structures affected by this new strategy of the firm to become service providers for the MRI machines would be the Human Resource department, the ...

Solution Summary

The response addresses the queries posted in 1760 Words, APA References.