Problems and possible benefits of each arrangement

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Helo Hospital is part of a multistate hospital system that has been adding five to ten hospitals per year for the past decade. Originally, three local hospitals made up the company, and the largest hospital's CEO supervised the heads of the other two facilities. When the system grew into 15 hospitals, a corporate office was created; when it grew to 30 hospitals, a multidivisional structure based on geography (east and west divisions) was adopted. At this point, disagreements have arisen regarding who should have control of specific services. In particular, the system is debating whether marketing, managed care contracting, strategic planning, business development, purchasing, biomedical maintenance, and recruiting should be centralized or decentralized. The executives from the hospitals and corporate office have scheduled a meeting to decide how these services should be allocated across the system . you have been asked to prepare a report on the advantages and disadvantages of placing these functions in a centralized corporate office, in the divisions, or at the hospital level. What are the problems and possible benefits of each arrangement?

Reference no: EM132121344

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