Showdown in the Heart of Texas

Abstract

The Deep South Healthcare System (DSHCS) is a large, multifacility healthcare system consisting of a corporate headquarters located in Florida and seventeen healthcare facilities (hospitals and clinics) located throughout the southeastern United States from Florida to Texas. The mission of DSHCS is to bring state-of-the-art health care to their patients. Their vision includes becoming the largest, most efficient provider of health services for their geographical regions through the acquisition and modernization of smaller regional hospitals. Their strategic plan includes significant emphasis on information systems to virtually link their network, as well as to partner with strong local physicians. The HomeBase Hospital Organization (HBO) is located in a city with a population of 200,000 in the state of Texas with a wider catchment area containing 1 million people. It was acquired by DSHCS 5 years ago and consists of an adult hospital, a children’s hospital, several outlying hospitals, clinics, and a medical group. HomeBase Hospital, a 500-bed hospital, is a major trauma center and is the largest single facility in the DSHCS. The radiology services at the hospital are equipped with the customary diagnostic equipment—magnetic resonance imaging (MRI), spiral computerized tomography (CT), ultrasound, and nuclear medicine capabilities. The radiology information system is interfaced with the hospital information system (HIS) and is used primarily for ordering radiology examinations and scheduling procedures. The combined entity of the HBO is the largest entity in DSHCS in terms of number of patients seen and number of radiographic exams produced each year. The next largest entity in DSHCS performs 50 percent fewer radiographic examinations than HomeBase Hospital. The entities that make up HBO are under the control of a single board of directors and a chief executive officer (CEO). The CEO of HBO, Mr. Hyde, is a native of the area and understands the local politics, customs, and people. He had been the CEO of another DSHCS hospital before the acquisition of HomeBase Hospital, and his status in the community helps buffer the corporate presence in the area. The geographical distance between HBO and the corporate offices of DSHCS and the large size of DSHCS demand that communication between the corporate CEO and the local CEO be maintained on a regular basis. Because of the large cost of acquiring HBO, the corporate chief operations officer (COO), Mr. Ollie, has tasked Mr. Hyde with improving the financial picture of HBO through efficiency and cost-cutting measures.