1.Management Control Challenges at Hadassah University Hospital - Mt. Scopus

1 October

Five months ago, Dr. Osnat Levtzion-Korach had been appointed Director of the Hadassah University Hospital - Mt. Scopus, a 350-bed academic community hospital located in the crowded, ethnically-mixed neighborhood of northeastern Jerusalem.Osnat had deep personal and professional ties to the hospital and to the Hadassah organization itself, and was the first female head of a Hadassah hospital in Israel.Mt. Scopus was one of two hospitals in the Hadassah Medical Organization, which had traditionally operated as a highly centralized system.That was changing now and Osnat had been promised much greater control over the finances and management of the hospital than had existed in the past.The staff at Mt. Scopus pinned a great deal of hope on Osnat to bring resources and a renewed sense of vision to the hospital, but she knew her ability to accomplish thisdepended in large part on her ability to manage costs as well as change a culture that had always prided itself on providing the best care but had not been held accountable for monitoring expenses or budgets.A pair of fundamental questions that will guide your writing follow:(1) What are the strengths and weaknesses of the planning and control system in use at Mt. Scopus under the previous Director General? What incentives are built into this system and how do they fit with the Director's ability to control costs and set priorities? (2) Evaluate the changes that the new Director General instituted in the management structure.Are they likely to significantly improve Osnat's ability to manage costs?How does the culture of the hospital affect Osnat's approach?Describe what you think Osnat should do next.Be sure that you fully describe the management control system you recommend, including how these measures put in place will guide decision-making and motivate management.This should represent the culmination of our work this semester and so should integrate a range of appropriate ideas.

Exhibits One and Two provide some general guidelines for analyzing cases.