Case Study: InterWest Healthcare Corp, Chapter 2

Interwest Healthcare is a nonprofit organization that owns 10 hospitals located in three western states. Cynthia Manzoni is Interwest’s CEO. Vijay Singh, Interwest’s CFO, and the administrators of the 10 hospitals report to Manzoni.Singh is deeply concerned because the hospital staffs are not being careful when entering data into the firm’s management information system. This data involves information on patient intake, treat- ment, and release. The information system is used to compile management reports such as those relat- ing to the costs of various treatments. Also, the sys- tem is used to compile reports that are required by the federal government under various grant pro- grams. Singh reasons that without good informa- tion, the management and government reports are less useful and potentially misleading. Moreover, the federal government periodically audits Inter- west and might discontinue aid if the reports are deemed inaccurate. Thus, Singh is worried about the managerial implications and the potential loss of federal funds.Singh has convinced Manzoni that a problem exists. She also realizes the importance of an accu- rate system for both management planning andmaintaining federal aid. Six months ago, she invited the hospital administrators and staff members from the corporate financial office to a retreat at a resort. The purpose was to communicate to the hospital ad- ministrators the problems with the data entry and to stress the importance of doing a better job. The meeting was acrimonious. The hospital people ac- cused Singh of being a bureaucrat who did not care about patient services. Singh accused the hospital staffs of not understanding the importance of accu- rate reporting. By the end of the meeting, Manzoni thought that she had a commitment by the hospital administrators to increase the accuracy of data entry at their hospitals. However, six months later, Singh claims that the problem is as bad as ever.Manzoni has hired you as a consultant to ana- lyze the problem and to make recommendations that might improve the situation.1. What are the potential sources of the problem? 2. What information would you want to analyze? 3. What actions might you recommend to increase the accuracy of the data entry? 4. How does your view of behavior affect how you might address this consulting assignment?Read and analyze the case on pg 37 of your text. Answer these questions at the end of the case. The questions should be answered in essay format, placing each question in a separate paragraph.use book and apply Managerial Economics from testbook…Brickley, J. A., Smith, C. W., & Zimmerman, J. L. (2016). Managerial Economics and Organizational Architecture. Chapter 2, Economist’s View of Behavior, (pp 14-65). McGraw Hill Education

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