Alliant Health Case

Alliant Health System has implemented a TQM system which has gained much attention for its boldness, but which has not netted significant financial improvement to the company’s overall performance. Alliant participates in a highly competitive market, and failure to improve its cost structure and increase its revenue stream will be devastating for its long-term potential. At this point, the company needs to complete the merger (from an internal standpoint) of its three hospitals, and it needs to focus on the quantitative results of its TQM program. Alliant also needs to use its IT resources to better achieve its short-term and long-term goals than it has in the past.

Alliant Health System suffers from three critical problems:

– Not fully merging its operations even years after acquiring other facilities;

– Failure to set quantifiable goals for its TQM program;

– An inability to use its information systems to their maximum potential

By not fully merging its operations, there continues to be redundancies in the way in which Alliant conducts business. Multiple labs, for example, and an inability to schedule operating rooms efficiently mean that physicians and patients alike are forced to work within a culture which pre-dates the merger. Where the merger might have been expected to bring about savings through economies of scale, such savings have gone largely unrealized because the culture of the various operations have not been integrated into a single Alliant culture.

Alliant has also focused too much of its resources on the process of TQM and not enough on the results associated with TQM. In some departments, the quality process has actually cost the company money, a trend which Alliant can ill afford given the high level of competition that it faces in this market. The company must be able to set quantifiable goals for TQM and measure those goals accurately and in a timely manner; merely



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