In response to the escalating cost pressures throughout the hospital industry, the management decided from Beth Israel Hospital (BI) in order to implement a plan to reduce operating costs their productivity. They chose the Scanlon plan, an employee stock ownership and incentive program previously only used in industrial environments. The case describes the difficulties in the implementation of the plan (Prepare/21) within complex organizational BI and asks the students to evaluate the plans success – both in terms of staff re … Read more »

In response to the escalating cost pressures throughout the hospital industry, the management decided from Beth Israel Hospital (BI) in order to implement a plan to reduce operating costs their productivity. They chose the Scanlon plan, an employee stock ownership and incentive program previously only used in industrial environments. The case describes the difficulties in the implementation of the plan (Prepare/21) within complex organizational BI and asks the students to evaluate the plans success – both in terms of staff and financial response, after operation for nine months
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from
Raymond A. Friedman,
Caitlin Deinard
Source: Harvard Business School
28 pages.
Release Date: 19, January 1991. Prod #: 491045-PDF-ENG
Prepare/21 at Beth Israel Hospital (A) HBR case solution