a. Describe the health care environment in Massachusetts in the 1990's. What were the driving forces...

a. Describe the health care environment in Massachusetts in the 1990's. What were the driving forces for change that were pushing the industry? What impact did these forces have on Tufts/New England Medical Center?

b. What happens within Tufts/NEMC as the external environment gyrates with change? What data in the case supports your claim?

c. How did Zane gain skills as a leader of change?

d. What type of change would you prefer to lead and why?

Expert Solution

Healthcare expenditures per capita were between 27% and 29% higher than the national average as from 1990-2000. There was a decrease in hospital births and nonresident discharges that led to an overall decline of 24% in total hospital charges from 1991-1996. Throughout ninety's, Massachusetts health care insurance plans merged into 3 large competitors. The driving forces were underfunding by both the state and federal governments, increase in the number of outpatient surgeries and also hospital debt

Impact:-

The new England medical center had fallen prey to the negative market forces and by 1996 they were in a large debt amounting to $240million and were losing physicians, market share and hospital acquisitions. Harvard pilgrim Health discontinued coverage to NEMC in 1995.

Tufts-NEMC was at first slow to react to the market pressures and was ineffective in improving processes and cash flow. Tufts-NEMC looked for a partner to remedy its fiscal dilemmas. Tufts-NEMC ended up merging with Lifespan.

keosha answered 2 weeks ago

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