Posted: February 24th, 2022

Case Study: Performance Management at Intermountain Healthcare

Kuan-Chung (Invoice) Wu HPM540: Professor Kamke HPM540: Case Examine three: Performance Management at Intermountain Healthcare 1. What’s your Assessment of the Performance Management system developed at Intermountain Healthcare? – The Performance Management (PM) system developed by Intermountain has change into a mannequin for a lot of healthcare organizations. Intermountain’s PM system contains the next components: 1) Figuring out six most vital efficiency standards, 2) Creating targets for various teams inside the group, and three) implementing the targets by creating an incentive compensation scheme.
This PM system design has confirmed to be efficient in lots of perspective, starting from particular person employees to administration and to the group as a complete. First and most significantly, this PM system aligns Intermoutain’s mission and values/commitments to its workers and their performances. Their workers and administration don’t simply speak about their values, they stay these values – committing to greatest follow with high quality and accountability.
Secondly, this PM system is efficient with regard of useful and helpful as improvement device and administrative device. The system not solely permits administration to accountably designed, applied, reached, and evaluated the targets for various teams within the group, but additionally permits workers to engaged and contribute organizational targets by growing their profession and incomes incentives. Because of this, completely different teams within the group had been in a position to stay targeted on engaging in all of the targets as a complete group.

Lastly, most workers in Intermountain had constructive and honest views for the PM system. For instance, workers in Intermountain expressed embarrassment, fairly than complaints of not getting incentives, when they didn’t attain a sure goal, even it was missed by lower than 1%. Lastly, this PM system allowed administration and administration group at Intermountain to successfully and precisely measure worker efficiency, resembling utilizing balanced scorecard and knowledge proven in Exhibit eight and 12, in addition to the price of offering providers.
The PM system created by Intermountain has served to be a mannequin for healthcare organizations to face future challenges because of the Reasonably priced Care Act in addition to different adjustments within the nature of operating a healthcare enterprise. Lastly, they had been in a position to notice the objective of recruiting and retaining the perfect workers. 2. In what methods may it improve or detract from the group’s strategic aims? – There have been some ways this methodology may improve the group’s strategic aims.
First, the vital efficiency dimensions had been recognized – these constituted the massive image of the group technique and allowed the massive image to stream all the way in which down to each particular person employees. Everybody within the group may all find out about group’s aims and decide to attaining them. Furthermore, as described in a the part of Scientific Objectives, this method allowed the targets of 5 dimensions of performances to stream in a topdown vogue, the targets for the Scientific Objectives had been developed in a bottom-up vogue.
This enabled the group to have a steady circle of efficiency administration loop much like Determine 10-1 within the textbook, which exhibits a linkage from organizational methods to feedbacks collected from organizational outcomes. The ways in which this method would detract from group’s strategic goal is the finance for implementing these methods, as talked about in final part of the article. The scientific efficiency enchancment initiative had resulted in income losses.
If Intermountain didn’t have sufficient money readily available, this efficiency administration system wouldn’t work so effectively. The opposite approach that might detract the strategic goal is that knowledge may very well be manipulated to make the performances 1|Web page Kuan-Chung (Invoice) Wu HPM540: Professor Kamke seemed nicely on the graph/desk/figures. It’s because the incentives is generated by good knowledge, and it is vitally simple for these knowledge to be manipulated. three. How are doctor incentives at Intermountain distinctive? Why did they take a ifferent method to doctor efficiency as in comparison with different workers? – Doctor incentives at Intermountain are distinctive as a result of physicians are divided into two teams (employed and non-employed aligned) and incentive plans designed for every group have completely different packages. For employed physicians, three approaches had been applied for incentives: 1) Peer stress, during which open dialogue the place held to look at physicians’ efficiency, 2) Public Recognition, during which greatest follow was acknowledged at the company degree, and three) financial incentives for assembly scientific requirements.
For non-employed, aligned physicians, who accounts for two/three all physicians utilizing Intermountain, the group has adopted the technique to have interaction these physicians by peer-to-peer competitors and a reliance on tutorial literature and inside knowledge in a given scientific space. Right here we will see that there are a variety of doctor communication and engagement for supporting physicians to obtain incentives, that are completely different approaches than different workers resembling managers and staffs who earns incentives by attaining particular person and company degree targets.
For my part, physicians have their incentives completely different than simply financial incentives is as a result of well being care is a service enterprise and physicians are the facilities for offering completely different sorts of providers to sufferers. In lots of circumstances, physicians are the choice makers who could affect the result of those providers. Subsequently, it’s important for physicians to know what one another is doing with clear and evidence-based communications so the efficient providers could be realized and applied by completely different physicians.
Furthermore, the elevated communication would improve the side of coordinated care which might Help each the doctor and organizations to cut back the price of their providers. The opposite cause that completely different approaches had been applied for physicians is likely to be as a result of they’ve already been incomes excessive ranges of compensation and want one thing completely different than financial incentives, in distinction with those that are in healthcare administration. four. How may this method additionally enhance the efficiency appraisal course of? –
Performance value determinations are used to evaluate an worker’s efficiency and supply a platform for suggestions about previous, present, and future efficiency expectations. In Intermountain’s efficiency administration system, there’s a steady objective improvement and implementation, in addition to feedbacks to the senior administration. The senior administration group then supplies suggestions for the group that develops the group’s objective to verify what the group expects for everybody. In different phrases, the expectations, whether or not they’re previous, present, or future, are clear to all workers.
One other side that I consider this method helps to enhance the efficiency appraisal course of in its makes use of. The textbook states that organizations typically use efficiency appraisal course of in two conflicting methods – administrative and developmental. Nonetheless, Intermountain’s efficiency administration system appeared to resolve this conflicting difficulty by its incentive compensation scheme. As described by Dan Zuhlke, the Vice President of Intermountain HR, the potential bonus or incentive is predicated on the achievement of the mixture of particular person degree targets and company degree targets.
This helps to resolve the battle of makes use of as a result of each administrative and developmental actions could be achieved concurrently beneath this method. Lastly, beneath the doctor incentive system, open discussions and peer-to-peer competitors allowed physicians to achieve constructive suggestions or enchancment concepts from others. The doctor incentive system basically served as a digital platform for care givers to be taught what the expectations are. 2|Web page

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