Capstone project Chapter 5

Capstoneproject: Chapter 5

HospitalCorporation of America

HospitalCorporation of America

TheHospital Corporation of America (HCA) has managed to become thelargest network of health care facilities globally by acquiring otherhospitals. In addition, HCA has several internal strengths that havecontributed towards its growth over the years. These strengthsinclude the ability to control costs, an effective strategic plan, astrong team of leaders, and the ability to delegate authorities.However, HCA has control weaknesses that have threatened its goingconcern and future growth. The major weakness is associated withhospital’s inability to control its operations and prevent fraud.This is confirmed by the 2014 scandal that resulted in a $ 1.7 worthof settlement. The second weakness resulted from failure of thehospital to control quality standards. This weakness stemmed from themanagement’s tendency to allocate unspecialized members of staff tocritical departments, such as the trauma unit. These weaknesses haveweakened the image of HCA and put its market share at risk, callingfor drastic interventions to restore patient’s trust.


HCAcan overcome its current weaknesses by implementing three majorrecommendations. First, the organization should develop and live upto the values of its corporate culture. The current cases of fraudthat were initiated by the management indicate the lack of a suitablecorporate culture (Sherman, 2014). To achieve this, the HCA willdevelop a written policy for fair practices between December 2015 andFebruary 2016. Provisions of the policy should be followed by allmembers of staff, with the executive managers serving as examples. Awritten fair practices policy will make it easy to hold fraudulentmanagers accountable for their misconducts, thus preventing fraud inthe future.

Secondly,HCA should review and reform its human resources management policy toensure that all members of staff are deployed to appropriatedepartments and allocated duties that match with skills, which willbe accomplished between December 2015 and January 2016. From thestudy, the decline in the quality of care in the trauma centerresulted from deployment of health care professionals who are notspecialized in the treatment of trauma cases (Sherman, 2014). With aclearly written HR management policy defining the qualifications andskills that should be possessed by health care professionals in eachdepartment, HCA will be able to services meet the specific needs ofpatients. This will reduce medical errors, patient complaints, andenhance the overall quality of care.

Third,the current master plan should be revised to include aspects ofservice quality, instead of just focusing on expansion ofinfrastructure, which should be done between January 2016 and March2016. The new master plan will include the number of experiencedhealth care providers that each department should have at any giventime. This will be achieved by setting the minimum staff-to-patientrations for each department. From the past experience, HCA expandedits health care centers and acquired new ones, but lacked specialiststo serve in those facilities (Patrick, 2014). Therefore, acomprehensive master plan will ensure that the growth plan takesaccount of all factors, including the need to offer quality careconsistently.


Amaster plan developed by HCA’s management indicates that thehospital has been growing through the acquisition of other healthcare facilities, expansion of the current ones, and construction ofnew ones. However, a decline in quality of care and lack of adequatecontrols to prevent fraud and data breaches indicate that HCA’sgrowth has not been sustainable. Being the largest hospital networkglobally implies that HCA has adequate resources to make thenecessary changes in order to overcome its current weaknesses andensure that the long-term growth in terms of infrastructure goes handin hand with a growth in the workforce. HCA will achieve sustainablegrowth by recruiting specialized health care professionals who willserve in different departments, setting minimum staff-to-patientratio for each department, and matching duties with skills.


Patrick,M. (2014). HCA’s diversification strategy. MarketRealist.Retrieved November 11, 2015, from

Sherman,A. (2014). Rick Scott oversaw the largest Medicare fraud in thenation’s history. POLITIFACT.Retrieved November 11, 2015, from