Why is Jane so concerned with the demonstrated financial competence of Russ?
Topic:
Details: Leadership Styles
Jane Underwood was confused. She was recently hired by World Health Corp. (WHC) to make sure that all of the rehabilitation hospitals owned by the company had solid financial portfolios. The company was looking to restructure the mortgages on existing properties in order to secure the necessary funding to make a large acquisition. WHC brought Jane on board as a result of her background in both healthcare finance and healthcare economics. Her confusion grew as she stared at her note-pad.
She had just finished speaking on the phone with Russ Anderson, the administrator of Rocky Pines Rehabilitation in Salt Lake City, Utah. On paper, the facility had average occupancy, average net operating income, and decent flow through. Before calling Russ, Jane had taken the time to review the performance of the facility as compared to others in similar markets. The Denver property was outperforming its sister facility in every aspect except one: satisfaction. Rocky Pines had incredibly high patient and employee satisfaction. In fact, it was the best satisfaction scores in the entire company.
Russ Anderson had been with Rocky Pines when it first opened its doors a little over 20 years ago. He started out as a maintenance technician and had advanced over time to his current position of administrator. A role he had held for the last 13 years. He had a clean personnel record and had received various awards, not surprisingly, all of them related to satisfaction. Jane had to admit, he was very pleasant on the phone and the regionals spoke highly of him.
After collecting her thoughts, she returned once again to the notes she had written on her paper. She had the same questions for the other properties, but his answers were a little upsetting. “I don’t rightfully know” was his response to her inquiry as to whether his competitors were charging more than him. “I don’t have them at the moment” was his answer to her question related to the quarterly financial results. When Jane asked him if he was on schedule to meet the revenue goals for the month, he responded that he “believed so.” When she pressed him a little more on the subject of his current financial ratios for the facility, she was met with literal silence. She swore she could hear airplanes in the background and the airport was miles away! What was she to do?
Resources to consult: Textbook
Specific questions or items to address: Case questions to answer:
1. Why is Jane so concerned with the demonstrated financial competence of Russ?
2. Due to Russ’s tenure and due to his high satisfaction scores, she wants to keep Russ as the administrator. However, how should she address the inadequate recording, reporting, and measuring of financial information?
3. How would it be possible that Russ was allowed to continue without a reprimand for so long? Is it possible that Russ was never properly trained in these areas?
4. Due to the time restraints, would it be best to address her concerns over the phone or should she visit the property in person?
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