Monday, November 13, 2006

For the Beancounter in You...11/29

I guess I was too harsh on the bean counters, since I did get several replies defending their honor. A few observations were made that need the light of day, as to why Essent and Paris weren't the right mix:

1. Essent didn't have the assets to be able to swing this large an endeavor. They were very exposed coming into this deal, partially because of a poor evaluation during the 'due diligence' period. They had no idea of the magnitude of what really needed fixing.

2. Short term goaling. Corporate put them on a fast-track schedule, with milestones in the monthly/quarterly timeframe, rather than planning for the long haul. Sort of the difference between Japanese and American corporations: Japanese take a longer approach, while American corporations are more instant gratification driven.

3. Lack of real understanding of the politics of the situation.
They had no real concept of the animosity between the "Holy House" and "Big Mac" crowds, and how it actually impacted Paris healthcare. (Note: the quoted descriptors were not mine, but they seemed to illustrate the point....) Additionally, the dynamics of the physician groups that had formed were foriegn as well.

4. Inability to adjust to the situation. Despite descrepancies in their conceptualize viewpoint and reality, they insisted on staying with the original plan and milestones, forgetting that feedback, adjustment, and re-evaluation are important steps in a project.

5. Mis-evaluation of the area's labor pool. In metro areas, there is always a supply of staff, due to the population base. But, in the Paris area, there are a couple of fallacies in that equation: There is a smaller population and limited draw to the area. The metroplex pays far better. Why drive the same distance to one and get paid less? It's like what put some of the nails in McCuistion's coffin: A Dallas-based management team that assumed the business climate was the same as the metroplex, and implemented policies that drove away their physician tenants.

And the result? Patients are leaving in droves. Shuttle bus services to Texarkana, Tyler/Longview, and Dallas are having to buy more vans. (Maybe Essent invested in those!) Services and procedures that we could previously count on are here no longer.

All we get in return is a visit from a military dictator, who meets with the hospital CEO--probably sharing tips....


Anonymous said...

I would guess that the second picture is an example of a failure to re-evaluate?


fac_p said...

A quick note: The link to FKP Architects is kind of interesting. The first example of their work that is given is Christus/St Joseph: "Purchase of the competing hospital provided an opportunity for improved service to area customers. FKP was selected to assist with strategies for consolidation of St. Joseph Hospital and McCuistion Hospital. Short-range strategies included initiatives to increase revenue and reduce operating costs. Long-range strategies were developed to eliminate excess capacity and streamline service delivery."

That's like Hud listing Arcon as a success....frank

Anonymous said...

Oh how you hit the nail on the head with that one!

Another big mistake between here and the metroplex, is if you piss an employee off in Dallas, it's not going to hurt your business much in the long haul. Here one employee may have 100 realatives in the surrounding area with numerous friends etc.

If they hear how the hospital treated their realitive, who worked for them, they are thinking,
Well if they are going to treat her that way, they must not care for people in general.

Anonymous said...

I think the rule of 250 is what you were talking about (a marketing class). But it isn't just 250. This blog is known by how many people? That's an unusual example, but not that unusual. Look at MySpace, and MSN Spaces, or just the personal space that Charter offers here in Dudley. How many people do they touch?

Each time someone searches for Paris, or Essent, or healthcare, or another topic that we've covered, the link to the blog pops up. It may be further down the list, but it's there. The RNC had their head handed to them this election, partially because of blogs. Communication is king....frank

fac_p said...

A question was posed: What policy changes occurred which caused three Essent pharmacy directors to be job-hunting? Any input?


Anonymous said...

When patients leave in "droves", so do physicians. We have several older physicians that will stick, mainly because they don't want to uproot their lives. Some of the fast-movers might, depending on the offers: Their ties to the community aren't as tight.