Harvard Case - Intermountain Health Care
"Intermountain Health Care" Harvard business case study is written by Richard Bohmer, Amy C. Edmondson, Laura R. Feldman. It deals with the challenges in the field of Service Management. The case study is 23 page(s) long and it was first published on : Oct 1, 2002
At Fern Fort University, we recommend Intermountain Health Care (IHC) implement a comprehensive strategy focused on enhancing service quality, fostering a culture of employee empowerment, and leveraging technology to deliver a differentiated customer experience. This strategy will involve a multi-pronged approach encompassing service design, employee engagement, customer relationship management, and strategic partnerships.
2. Background
Intermountain Health Care (IHC) is a non-profit healthcare system based in Utah, known for its commitment to high-quality, affordable healthcare. The case study highlights IHC's efforts to maintain its competitive advantage in a rapidly evolving healthcare landscape, characterized by increasing competition, rising costs, and changing patient expectations.
The main protagonists in the case are:
- Dr. Charles Sorenson: IHC's CEO, who is committed to maintaining IHC's leadership in quality and affordability.
- IHC's leadership team: They are tasked with developing strategies to address the changing healthcare environment.
- IHC's employees: They are the key drivers of service quality and patient satisfaction.
- IHC's patients: They are the ultimate beneficiaries of IHC's efforts and have evolving needs and expectations.
3. Analysis of the Case Study
This case study can be analyzed through the lens of Service Dominant Logic (SDL), which emphasizes the value co-creation between the service provider and the customer. IHC's success hinges on its ability to effectively manage the following key aspects of service delivery:
- Service Quality: IHC has a strong reputation for quality, but maintaining this advantage requires continuous improvement. The SERVQUAL model can be used to assess service quality gaps and identify areas for improvement. This involves evaluating patient perceptions of tangibles, reliability, responsiveness, assurance, and empathy.
- Customer Experience Management: IHC needs to focus on the customer journey mapping to understand the patient experience across all touchpoints. This includes identifying moments of truth, where patients form critical impressions of the service.
- Service Design: IHC should adopt a service blueprinting approach to visualize the service delivery process and identify potential areas for improvement. This includes optimizing service encounters and ensuring seamless integration of various service components.
- Employee Empowerment: IHC's success relies heavily on its employees. Employee empowerment is crucial for delivering high-quality service. This involves providing employees with the necessary training, resources, and autonomy to make decisions that enhance patient care.
- Technology-Enabled Services: IHC should leverage technology to enhance service delivery and improve patient experience. This includes implementing self-service technologies, telehealth, and mobile applications to provide convenient and accessible care.
- Service Innovation: IHC needs to continuously innovate to stay ahead of the competition. This involves exploring new service offerings, adopting emerging technologies, and collaborating with other healthcare providers.
4. Recommendations
IHC should implement the following recommendations to maintain its competitive advantage and enhance patient experience:
- Enhance Service Quality:
- Conduct regular service quality audits using the SERVQUAL model to identify areas for improvement.
- Implement service recovery programs to address service failures and turn dissatisfied patients into loyal customers.
- Develop service guarantees to demonstrate commitment to quality and patient satisfaction.
- Optimize Customer Experience Management:
- Implement a comprehensive customer relationship management (CRM) system to track patient interactions and preferences.
- Utilize customer feedback management tools to gather and analyze patient feedback for continuous improvement.
- Develop customer loyalty programs to reward repeat customers and encourage patient retention.
- Empower Employees:
- Implement employee empowerment programs that provide employees with the autonomy and resources to make decisions that enhance patient care.
- Develop employee performance management systems that focus on service quality and patient satisfaction.
- Offer employee incentives for exceeding performance targets and delivering exceptional patient care.
- Leverage Technology:
- Invest in technology-enabled services to improve patient access, convenience, and efficiency.
- Implement telehealth services to provide remote consultations and reduce the need for in-person visits.
- Develop mobile applications to facilitate patient communication, appointment scheduling, and medication reminders.
- Foster a Culture of Service Excellence:
- Develop a service culture that emphasizes patient-centered care and employee empowerment.
- Implement service training programs to equip employees with the necessary skills and knowledge to deliver exceptional service.
- Promote diversity and inclusion in the workplace to foster a welcoming and inclusive environment for patients and employees.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with IHC's core competencies in quality healthcare delivery and its mission to provide affordable and accessible care.
- External Customers and Internal Clients: The recommendations address the needs of both external customers (patients) and internal clients (employees).
- Competitors: The recommendations help IHC stay ahead of the competition by focusing on service quality, customer experience, and technological innovation.
- Attractiveness ' Quantitative Measures: While quantifying the impact of these recommendations is challenging, they are expected to lead to improved patient satisfaction, increased loyalty, and potentially reduced operational costs through efficiency gains.
6. Conclusion
By implementing these recommendations, IHC can enhance its service quality, improve patient experience, and maintain its competitive advantage in the evolving healthcare landscape. This strategy will require a commitment to continuous improvement, employee empowerment, and technological innovation.
7. Discussion
Other alternatives not selected include:
- Merging with another healthcare system: This could provide economies of scale but may compromise IHC's mission and values.
- Focusing solely on cost reduction: This could lead to a decline in service quality and patient satisfaction.
- Ignoring technological advancements: This would put IHC at a disadvantage in the long run.
Risks and Key Assumptions:
- Implementation challenges: Implementing these recommendations requires significant resources and commitment from leadership.
- Resistance to change: Some employees may resist changes to their work processes or the introduction of new technologies.
- Technological advancements: The rapid pace of technological change may require IHC to adapt its strategy quickly.
8. Next Steps
IHC should implement the following next steps:
- Form a task force: Create a cross-functional task force to oversee the implementation of these recommendations.
- Develop a timeline: Establish a timeline for implementing each recommendation, including key milestones.
- Allocate resources: Secure the necessary financial and human resources to support the implementation of the recommendations.
- Monitor progress: Regularly monitor progress and make adjustments as needed.
By taking these steps, IHC can ensure the successful implementation of its strategy and achieve its goals of enhancing service quality, improving patient experience, and maintaining its competitive advantage in the healthcare industry.
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Case Description
Intermountain Health Care (IHC), an integrated delivery system based in Utah, has adopted a new strategy for managing health care delivery. The approach focuses management attention not only on the facilities where care takes place but also on physician decision making and the care process itself, with the aim of boosting physician productivity and improving care quality, while saving money. This case explores the challenges facing Brent James, executive director of the Institute for Health Care Delivery Research at IHC, as he implements new structures and systems (including a data warehouse for care outcomes, electronic patient records, computer workstations, clinical data support systems, and protocols for care) designed to support clinical process management across a geographically diverse group of physicians with varying levels of interest and dedication to IHC. Also highlights an innovative strategy for creating and disseminating knowledge at the individual and organizational levels to maintain high standards in care delivery.
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