Performance pay for MGOA Physicians (A) Essay

On a warm day in June of 1998, Dr. Harry Rubash stood in front of a bookshelf in his juvenile office pose photographs of his family and former colleagues in Pittsburgh. He looked turn up his window to the profusion of hospital buildings and mired Boston streets below. It was a good picture, he thought, of the problems that faced him in his new billet at the Massachusetts familiar infirmary (MGH). Dr. James Herndon, his former colleague at the hospital system of the University of Pittsburgh, had brought him to MGH to take over as chief of orthopaedics at Massachusetts General Orthopaedic touch ons (MGOA). Herndon himself was new to MGH, having recently taken over as chairman of Partners Orthopaedics.1 Rubash and Herndon faced the ominous take exception of restoring the financial health of the ailing MGOA.The infirmarys HistoryIn dish up since 1811, MGH was the third hospital founded in the join States and included the source orthopaedic dish up in the country, founded in 1899 by Dr. Joel E. Goldthwait, a pioneer in the field. The department had a long account of providing outstanding clinical c be, in addition to making portentous contributions to medical research and teaching. It was an MGH doctor who first made the discovery of a herniated disc. In fact, the annals of orthopaedic literature were change with dis parliamentary laws that bore the names of the MGH doctors who discovered them. The prestige of both MGH and the orthopaedic department was well-deserved.In 1998, the year Rubash and Herndon arrived, the 12 surgeons at MGOA performed over 2,000 surgeries (see Table A for the number of surgeries performed from 1997 to 1999).2 The swear of procedures performed coveredeverything from knee arthroscopy to hip replacements, to spinal anesthesia surgery. The group also had a history of providing services to a wide place of patients across the socio-economic spectrum. Table B shows the group received revenues from patients with private insura nce companies, patients on Medicare (government insurance for the elderly) and Medicaid (government insurance for low-income individuals and families), those covered by workers compensation, and self-pay patients (those without insurance). 1 Partners health care was the parent company of the Massachusetts General Hospital. 2 MGOA surgeons had 252 days of surgical condemnation per year.________________________________________________________________________________________________________________ Professor Jason R. Barro, Kevin J. Bozic, MD (MBA 2001), and Research Associate Aaron M. G. Zimmerman prepared the original version of this type, motion Pay for MGOA Physicians (A), HBS No. 902-159 which is being replaced by this version prepared by the equal authors. Some names in the case have been changed. HBS cases are developed only if as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffe ctive management. Copyright 2003 President and Fellows of Harvard College. To order copies or request permission to multiply materials, call 1-800-545-7685, write Harvard Business crop Publishing, Boston, MA 02163, or go to http//www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, use in a spreadsheet, or genetical in any form or by any meanselectronic, mechanical, photocopying, recording, or otherwisewithout the permission of Harvard Business School.This register is authorized for use only in Human Resources Management MMHA 6220 by Angela capital of Alabama at Laureate Education Baltimore from February 2014 to February 2015.