Reference no: EM132686778
Question: Affiliated HealthSystems, a regional, nonprofit hospital system was founded in 1986 by the merger of three large, urban hospitals. These institutions were tertiary care facilities that had a combined capacity of 2000 inpatient acute care beds. During the next 7 years, Affiliated HealthSystems purchased 12 hospitals located in rural communities or small towns that were within 150 miles of the three organizational institutions. In addition, five management contracts were initiated between Affiliated and smaller facilities. These 17 institutions were added by Affiliated in hope of increasing, or at least retaining, referrals for the three urban hospitals.
From 1995 to 1998, Affiliated began to diversify and offer a broader array or programs and services to its urban marketplace. A health maintenance organization and a preferred provider organization were initiated successfully. Special services for target markets, such as the elderly and women, were offered with positive results.
In contract, the rural hospitals are not doing so well; for example, occupancy levels are down, the cash flow at some institutions is poor, and it is difficult to recruit competent physicians and other professional staff. the system is not certain that its urban centers are receiving the volume and type of referrals that it desires. As a result, Affiliated is considering the development of outcome measures that would allow it to monitor the performance of its rural hospitals as well as its new urban community initiatives
1. Describe step to be taken to identify the measures that should be included in the performance measurement system.
2. What are suggested measures to include in the analysis and rationale for including them.
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