Psychiatric Solutions Inc. Peak Behavioral Health Services, LLC Case Analysis

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By: Ernesto Avila Norma Avila Andrea Berg. Psychiatric Solutions Inc. Peak Behavioral Health Services, LLC Case Analysis. PSI History. PSI owns or leases 34 freestanding psychiatric inpatient facilities 75% revenue is from inpatient services - PowerPoint PPT Presentation

Text of Psychiatric Solutions Inc. Peak Behavioral Health Services, LLC Case Analysis

Psychiatric Solutions Inc. Peak Behavioral Health Services, LLC Case Analysis

Psychiatric Solutions Inc.Peak Behavioral Health Services, LLCCase AnalysisBy:Ernesto AvilaNorma AvilaAndrea BergPSI HistoryPSI owns or leases 34 freestanding psychiatric inpatient facilities75% revenue is from inpatient servicesRemaining 25% generated through management contracts with government agencies and medical surgical hospitals1 out 3 companies competing for national dominance in inpatient psychiatric carePSI Mission StatementCommitted to creating a corporate culture which promotes integrity as a fundamental for all decisions by its employees and those with whom the company deals.Foster an atmosphere of trust, respect, and loyalty from patients, employees, consultants, etc.Meet or exceed government regulations and laws.Peak Behavioral Health Services, LLCPBHS was acquired by PSI in June 2004Private psychiatric 144 bed hospital Located in Santa Teresa, NMPhilosophy: mental disorders are a result of biological, psychological and social factorsServices: Intensive Outpatient Program (IOP) Partial Hospitalization Program (PHP) Residential Treatment Center (RTC) for children and adolescents ages 6-18StrengthsPSI merged with PMR Corporation in 2002

Strong competitor in psychiatric facilities

Rapid Growth

Remarkable and highly trained staff

Wide variety of services

WeaknessesBad press influences

Staff past mistakes

Low staff-patient ratio compared to other hospitalsOpportunitiesAetna buys EAP from Psychiatric Solutions

Awards received

Recent acquisitionsThreatsUniversal Health Services and Ardent Health Services which are private companies and ranked 1 and 2 respectively

Unsatisfactory patient visit reviews

Current economyCommunication ProblemCommunication between:

Business Development Department

Admissions Department Negatively impacting PBHS

Communication Problem Business Development Dept.Business Development Department (BDD) composed of 4 non-clinical, non-business degreed individualsDirector with four years in the positionSenior marketer with three years in the positionJunior marketer with two years in the position One marketer with under a year in the positionCommunication ProblemAdmissions DepartmentAdmission Department has one licensed master level clinician per shiftOne clinician covering two twelve hour shifts on the weekends.All rotate on-call schedule to cover remainder 24 uncovered weekend hoursClinicians are licensed to assess the psychological status of patients and make recommendationsWhen admissions staff is busy, calls are rerouted to an unqualified member of the marketing department

Communication ProblemMarketers refer unqualified patients in for free assessment

Marketers lack necessary in-depth clinical understanding

Marketers try to maintain a high number of referrals

Communication ProblemAdmissions staff spend time processing patients who are not being admitted

Business Development Department blames the Admissions Department for the turning patients awayConsequences of Communication ProblemPatients are not served at PBHSDisservice:PatientAdmissions DepartmentReferral sourcePatient wait long hours to be seenBusiness Development Department perceives this as the Admissions Department only accepting 1 out of 10 patients at a timeOpposing ViewPBHS does not feel that this is an issue, rather that this is just the nature of the business

Senior Management believes that the higher number of phone calls will in turn provide a higher profit

Solution/Recommendation #1Adhere PSIs local and regional marketing teams standards by:Introducing clinical and business development representatives together

This will enhance both departments to improve the company

Combined expertise of these experts will make both departments well-roundedSolution/Recommendation #2Hire individuals that have an professional business degree for the Business Development Department

These individuals will perform at professional level to improve the companySolution/Recommendation #3Merge Business Development and Admissions Department under one directorThis would call for common goals and would minimize conflict while increasing accountabilityMerge the two departments under one director to create a common goals and eliminate the blame gameIt will reduce the competition between the two departmentsSolution/Recommendation #4Have a teambuilding exercise that is mandatory for both departments to improve the relationship among them

Use the rope course that is on sit at PBHS to show that they are all on the same team and learn to trust each otherSolution/Recommendation #5Downsize the Business Development Department from 4 to 1 staff member.

Use additional funds to hire another full time Admission Department clinician to help the current staff

This will allow for quicker response times for referralsConclusionsPBHS has a strong foundation to be leading psychiatric hospital in the El Paso/Las Cruces communities

Proposed solutions may assist the hospital in restoring credibility

Hospital will regain community confidence and will greatly succeed

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