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Written Analysis and Communication
Individual Assignment No 2
Case Analysis Report on ‘The Quality Improvement Customers Didn’t Want’
Institute of Management, Nirma University
August 14, 2012
Quality Care is a health maintenance organization and has been occupying third
position in the health care industry for quite some time. The recent trend of installing
computer systems in the health care organizations has put Quality care in a confusing
state where it has to decide whether to follow the trend or stick to the traditional
Quality Care has to look out for customer satisfaction and retention, quality of the
service provided and market position. It can install the systems at a few locations for
testing, or conduct surveys in organizations where the systems have already been
installed, or provide a comfortable working environment or simply avoid the new
This can be achieved by simply adopting the new computerized systems at a few
locations and after testing them implementing at the rest of the locations.
Quality Care, a Health Maintenance Organization (HMO), is currently at the third
position in the Health Care industry preceded by Health Care One in the first position
and MediCenters in the second position. Quality Care, just like Health Care One, is a
staff model HMO which means that its physicians are direct employees of the HMOs and
are salaried. Its yearly revenues are around $450 million with profits of $8.1 million
after expenses. This shows that the profit is less than 2%of the revenues and hence it is
not a high profit making organization.
Recently, Health Care one has adopted a new computer system which allows its
patients to be lead by a computer system through...