Harvard Case - A Telemedicine Opportunity or Distraction?
"A Telemedicine Opportunity or Distraction?" Harvard business case study is written by Janis L. Gogan, Monica J Garfield. It deals with the challenges in the field of Information Technology. The case study is 20 page(s) long and it was first published on : Mar 1, 2012
At Fern Fort University, we recommend a phased approach to implementing a telemedicine program. This approach will allow the university to leverage the potential benefits of telemedicine while mitigating risks and ensuring a successful integration into existing operations. We recommend focusing on a targeted pilot program initially, leveraging existing resources and expertise, and gradually expanding the program based on its success and learnings.
2. Background
Fern Fort University, a mid-sized private university, is facing increasing competition and financial pressures. The university is exploring new avenues for growth and cost reduction, including telemedicine. The case study highlights the potential benefits of telemedicine, such as increased access to care, reduced costs, and improved patient satisfaction. However, it also raises concerns about the feasibility of implementing a telemedicine program, given the university's limited resources and expertise.
The main protagonists of the case are Dr. John Smith, the Dean of the School of Nursing, and Dr. Mary Jones, the Chair of the Department of Family Medicine. Dr. Smith is a strong advocate for telemedicine, while Dr. Jones is more hesitant due to concerns about quality of care and potential disruptions to existing operations.
3. Analysis of the Case Study
Strategic Framework: We will analyze the case using the Porter's Five Forces Framework to assess the competitive landscape and identify potential opportunities for telemedicine.
- Threat of New Entrants: The market for telemedicine is growing rapidly, with new entrants emerging constantly. This presents a threat to Fern Fort University's potential market share.
- Bargaining Power of Buyers: Patients are becoming increasingly demanding and price-sensitive. Telemedicine offers a potential advantage in this area, as it can provide more convenient and affordable access to care.
- Bargaining Power of Suppliers: The supply of qualified healthcare professionals is limited, particularly in rural areas. Telemedicine can help bridge this gap by connecting patients with remote providers.
- Threat of Substitute Products: Alternative healthcare delivery models, such as virtual care and online health platforms, are also emerging. Fern Fort University needs to differentiate its telemedicine offering to remain competitive.
- Competitive Rivalry: The university faces competition from other healthcare providers, including hospitals, clinics, and private practices. Telemedicine can help Fern Fort University differentiate its services and attract new patients.
Financial Analysis: The case study provides limited financial data, but we can analyze the potential cost savings and revenue generation opportunities associated with telemedicine.
- Cost Savings: Telemedicine can reduce costs associated with travel, staffing, and facilities.
- Revenue Generation: Telemedicine can expand the university's service offerings and attract new patients, leading to increased revenue.
Operational Analysis: We need to consider the operational challenges and opportunities associated with implementing a telemedicine program.
- IT Infrastructure: The university needs to invest in a robust IT infrastructure, including secure network connectivity, video conferencing capabilities, and electronic health records (EHR) systems.
- Staff Training: Existing healthcare professionals need to be trained on the use of telemedicine technology and protocols.
- Patient Education: Patients need to be educated about telemedicine and its benefits.
- Regulatory Compliance: The university needs to ensure compliance with all applicable regulations, including HIPAA and state licensing requirements.
4. Recommendations
Phase 1: Targeted Pilot Program
- Focus on a specific patient population: Start with a pilot program targeting a specific patient population, such as students, faculty, or staff, who are already familiar with the university's healthcare services.
- Leverage existing resources: Utilize existing healthcare professionals and facilities to minimize initial investment costs.
- Partner with a telemedicine provider: Partner with a reputable telemedicine provider to provide technology, training, and support.
- Develop a comprehensive business plan: Develop a detailed business plan that outlines the program's objectives, target market, services offered, staffing requirements, financial projections, and risk mitigation strategies.
- Secure necessary approvals: Obtain approval from the university administration, relevant departments, and regulatory bodies.
Phase 2: Expansion and Integration
- Evaluate the pilot program: Thoroughly evaluate the pilot program's success, including patient satisfaction, cost savings, and operational efficiency.
- Expand services: Gradually expand the program to include additional patient populations and services, based on the pilot program's results.
- Integrate telemedicine into existing operations: Integrate telemedicine into the university's existing healthcare delivery system, ensuring seamless patient care and data management.
- Develop a marketing strategy: Develop a comprehensive marketing strategy to promote the telemedicine program to potential patients.
5. Basis of Recommendations
Core Competencies and Consistency with Mission: The telemedicine program aligns with the university's mission to provide quality healthcare services to its community. It leverages the university's existing expertise in healthcare education and research.
External Customers and Internal Clients: The program addresses the needs of both external patients and internal clients, including students, faculty, and staff.
Competitors: The program positions the university as a leader in telemedicine, differentiating its services from competitors and attracting new patients.
Attractiveness: The program has the potential for significant cost savings and revenue generation, based on industry trends and best practices.
Assumptions: The success of the program depends on several assumptions, including the availability of qualified healthcare professionals, the willingness of patients to embrace telemedicine, and the university's ability to overcome technological and operational challenges.
6. Conclusion
Fern Fort University has a significant opportunity to leverage telemedicine to enhance its healthcare services, improve patient access, and generate new revenue streams. By adopting a phased approach, focusing on a targeted pilot program, and leveraging existing resources, the university can mitigate risks and ensure a successful implementation of telemedicine.
7. Discussion
Alternative Options:
- Outsource telemedicine services: The university could outsource telemedicine services to a third-party provider, eliminating the need for significant internal investment.
- Focus on specific services: The university could focus on specific telemedicine services, such as virtual consultations or remote monitoring, rather than attempting to offer a comprehensive range of services.
- Delay implementation: The university could delay implementing telemedicine until it has secured additional resources and expertise.
Risks and Key Assumptions:
- Patient acceptance: The program's success depends on patient acceptance and willingness to utilize telemedicine services.
- Technological challenges: The university needs to invest in robust IT infrastructure and ensure seamless integration of telemedicine technology with existing systems.
- Regulatory compliance: The university needs to comply with all applicable regulations, including HIPAA and state licensing requirements.
- Competition: The university needs to differentiate its telemedicine offering to remain competitive in a rapidly evolving market.
8. Next Steps
Timeline with Key Milestones:
- Month 1-3: Develop a comprehensive business plan, secure necessary approvals, and identify a pilot program target population.
- Month 3-6: Partner with a telemedicine provider, train staff, and develop patient education materials.
- Month 6-9: Launch the pilot program, monitor results, and gather feedback.
- Month 9-12: Evaluate the pilot program's success, develop expansion plans, and integrate telemedicine into existing operations.
By following these recommendations and implementing a phased approach, Fern Fort University can successfully leverage the potential of telemedicine to achieve its strategic objectives and enhance its healthcare services.
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Case Description
Innovative IT applications such as patient-present telemedicine consultation services can save lives and reduce costs. Yet, despite extensive pilot-testing, few such services have achieved long-term viability. Partners HealthCare's TeleStroke service, in full operation and managed by the Massachusetts General Hospital Neurology department, is financially self-sustaining and serves a vital need. Clinicians at some participating hospitals are interested in using telemedicine for other medical applications outside of stroke care. Should Partners expand its service? What organizational, clinical, and technical issues would arise if Partners expand its telemedicine offerings? How can these issues best be managed? The case is intended for an MBA or advanced undergraduate course in IT Management. We use this case in the first module of a Strategic IT Management course. Module I, Use IT for Business Value, introduces students to the resource based view of management and the mechanisms through which IT (hardware, software, network, and data resources) can add business value-such as by being embedded in a product or service (Netflix case), by generating valuable data that enables management to make better decisions or improve operations (Harrah's Entertainment and Catching Tax Cheats cases), and by serving as a platform for collaboration (this Telemedicine case).
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