Sparrow Hospital Case Study

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Sparrow hospital system is the largest health system in the mid-Michigan area which is located in Lansing, MI. It provides a range of care from staying fit, level I trauma center, major surgeries to long-term care. Also, it has a coordinated and collaborative network of providers, physicians and facilities which help in providing the continuum of care to the people of the community. Moreover, it has received multiple awards and accreditation, including The Joint Commission Accreditation (which is the highest national accreditation for safety and quality of care) and Magnet status (which is considered the “gold standard” for nursing care) (“Sparrow’s Accreditations…”, n.d.). Further, Sparrow hospital accepts most of the local and national insurance …show more content…
Moreover, initial goal of the managed care plans is to recruit the hospital. Once the plan has adequately recruited the hospital, its focus changes to periodic maintenance and renegotiation of its plan. Further, managed care plans contracts depend upon the type of the facilities and the provider network which includes physicians, hospitals, ancillary and therapeutic staff, and facilities. Existence of contract between the service provider and paying organization is favorable to both. Beneficial reasons of contracts to the health plan are: 1) Financially better due to favorable pricing, 2) provider agreement to provider services to it’s members, 3) helps in establishing service area requirement, 4) helps in fulfill some of the Medicare advantage plan requirement as direct submission of claim, no balance billing, members does not get charged for any reason, providers agrees to utilization management and quality management programs, and provider does not discriminate. (Kongstvedt, 2013, p.58). Whereas, for the providers the benefits of contracts are: 1) able to negotiate better pricing for service provided, 2) faster reimbursement compared to receiving payment directly from patient, 3) boost to business by making sure that …show more content…
Hence, it is considered as a multi hospital systems (MHS). Further, it is a non-for-profit organization and it reinvests the profit earned from its operation in redevelopment of the hospital as well as establishing new facilities, buying new equipment, expanding staff as well as salaries/bonuses to its administrators. Also, it conducts community needs assessment and then develop various strategies to meet its need every three years as mandated by ACA (Sesana, 2014). Moreover, as a part of its focus, Sparrow hospital’s mission is to provide quality and compassionate care to the community people and its vision is to become recognized as a national leader in quality and patient experience (Mission, vision...
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