Was HealthSouth’s outpatient concept in the best interest of the patient?
The outpatient concept introduced by HealthSouth was in the best interest of the patients. HealthSouth had 600 outpatient centers that offered outpatient programs. It helped patients to access the hospital while staying at home. Outpatient programs helped to boost patients’ confidence, enhancing quick recovery. The program was well maintained during the early stages of the company since the company was making profits and it consistently expanded its outpatient facilities.
The outpatient program has been adopted by many hospitals due to its simple functionality; it is cheaper for patients to stay at home and visit the hospital for a short time. This avoids the congestion in the facilities. Most hospitals in Southwest Florida have tried to adopt the outpatient method to mainly avoid congestions in their hospitals and to ensure patients’ comfort. Some hospitals even offer private outpatient services. Patient commitment is highly required for outpatient services to work well. Therefore, careful assessment should be done to ensure the patients are worthy of the program.
How was Richard Scrushy’s charisma both positive and negative influences related to the growth and demise of HealthSouth?
HealthSouth had a great impact on the medical field by offering outpatient rehabilitative services in the 1980s, under the former CEO Richard Scrushy. He subsequently spearheaded HealthSouth to great heights through expansion and even enlisting in the stock exchange. The company’s growth and profitability earned him a standing ovation from the investment bankers. Scrushy clearly achieved many great goals during his leadership.
Despite Scrushy’s charisma and his achievements in the company, he had his flaws. Scrushy did not allow disagreements between him and his subordinates. Scrushy would demean and personally attack his subordinates during staff meetings (Wikipedia para 1). He ordered the publication of fraudulent financial reports when the company faced competition and Medicare cutbacks; he did this to meet investor expectations and to control the price of the company’s stock. To the subordinates, Scruchy was a tyrant who made independent decisions for the company.
What internal oversight was missing that would have prevented overstated financial projections and fraudulent financial reporting?
It took a very long time for Scrushy to be investigated. HealthSouth had to seek the services of an external law firm to review Scruchy’s stock sale. The firm found out that the sales and profits and loss were not adding up. Scruchy violated the Sarbanes-Oxley Act of the American federal law which was enacted in 2002. The law required senior persons in the company to take individual responsibility especially the Chief Executive Officer and the Chief Financial Officer. Other companies had violated the law through accounting scandals; for example, Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom were companies that had violated the law leading to the establishment of the Sarbanes-Oxley Act to act as an oversight for public companies. The law would have prevented Scruchy from committing accounting fraud if the act was in place.
What impact does public demeaning of subordinates have on both organizational performance and individual performance?
Public demeaning can induce psychological and physical disorders. To a person who has been demeaned, the level of harassment increases with time and a person can easily influence and manipulate your thoughts. Corruption and the intentional cause of hardship lead to sarcasm and negativity. This is normally linked to suicides and depression. Public demeaning may lead to low self-esteem, low self-image, which induces stress and loss of personal dignity. In the HealthSouth, Scrushy used psychological depression to manipulate his subordinates; this introduced a sense of negativity towards their work and in their attitude.
Scruchy induced stress and loss of personal dignity through negative comments and personal attacks toward his juniors. This negatively influenced the general performance of the company. Scruchys’ use of mind control and threats instilled fear among his subordinates leading to fear of disagreements. Public demeaning does not motivate; it only instills a sense of fear and induces stress or depression that may eventually lead to suicide or low self-esteem.
Work Cited
Wikipedia. “Wikipedia the free encyclopedia.” HealthSouth Corporation. 2011. Web.