Utilize the following information:

• Hospital Characteristics (see attached financials)
• Competitive environment, declining market share to competitors
• Moderate to substantial debt
• Facility and equipment that is fairly current, but will have future investments in capital
• Partial electronic medical record system
• Mediocre quality and patient satisfaction scores
• Few employed physicians/ no hospitalist program
• Split payor mix between public and private
• Overall not profitable from operations in most recent fiscal year
• Local Physician Practices Characteristics
• Small primary care and specialty practices (mixture of solo and small groups)
• Independent ownership
• Loose affiliation with hospital
• Combination of office and hospital practice

Both Hospital and Physician organizations have contract-only relationships with payors and suppliers and are currently not working with either in any strategic way financially.

1.Create an analysis of how reimbursement for services will likely change and how the organizations should prepare for this (e.g., PFB, Value Based Purchasing, etc).