Buy custom Columbia HCA Medicare Scandal 
    
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            | Topic: | 
            
                
                    Business
                
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            | Number of pages / Number of words: | 
            
                5 / 1162             | 
        
                
    
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Often times once a patient gets used to a particular hospital system they will use it for all of their care needs
?« Because they owned such a broad spectrum of services, the opportunity for ?§cost shifting?? presented itself ?V and though illegal ?V they took advantage
?X Compensation Strategy
?« Employees, specifically hospital administrators, were salaried below that of the competition ?V although bonuses had the potential to double their earnings ?V at the same time however, there was just as equal the chance to receive no bonus at all
?« At risk of receiving no bonus and with salaries already under market value ?V hospital management had great incentive to do whatever it took to meet their goals
?« Ethical and legal grounds aside ?V Columbia?¦s compensation structure was basically an open invitation for fraud
?X Warnings
?« The company knew trouble was on the horizon (raid in El Paso, NY Times article, etc...
        
        
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Central Facts of the Case
?X In 1997, Columbia/HCA Corporation was the largest health care company in the world
?X In 1996, Columbia Hospital Corporation was named the ?§Most Admired Company?? by Fortune magazine
?« Clearly they were a well-respected, well-trusted company not too long before they were raided, and during a time that they were under investigation (not known to the public at the time) for fraudulent activity
?X Columbia was buying up as many hospitals and other health-related business as it could
?X Became a public company in 1990
?X Physicians were allowed to own a stake in Columbia/HCA hospitals
Major Overriding Issue / Related Questions
The overriding issue is that Columbia/HCA acted illegally and unethically in their dealings with the Medicare program...
        
        
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            General points of the essay
            
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