GROUP HEALTH EAST

The discussion question for this module is a series of questions related to a case study found in Chapter 1 of the text. Please answer all three questions (found below) in your initial response.

Chapter 1 (pp 7-15): CASE STUDY— GROUP HEALTH EAST (GHE)

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• 100,000-member managed care organization
• Mixed model
• 55-year-old administrator (Mr. Jones)
• Two large multi-specialty groups, each with a separate clinic
• 500 individual MDs in community
• Affiliated with two major hospitals in Boston
• Each clinic maintains a functional design
• Two divisions (support services and clinical services)
• Considering moving to a “matrix model”

Initial Discussion Questions:

1. What are the advantages and disadvantages of a matrix model for GHE in terms of direct and indirect costs, as well as benefits such as improved coordination?
2. How many product lines should the organization identify?
3. How should the organization determine which product lines ought to maintain separate identities as part of the matrix design?

Be sure in your initial response you support your findings and post with at least two quality, primary sources, which may include you textbook. Cite and reference your sources. (write 5-6 sentence summaries for each question).