Hospital Corporation of America

Hospital Corporation of America

HospitalCorporation of America

HospitalCorporation of America

Researchon fraud


HospitalCorporation of America (HCA) has faced many challenges in itsattempts to make profits (Morgan &amp Morgan, 2012, August 24th).The corporation is offering high-quality care in order to meet itsprofits requirements, instead of using the proper means to improveits performance the hospital uses false information that requiresthe patients pay more medical expenses than what is required. Thispractice has affected severely its performance as many patients arelosing confidence with the hospital (Morgan &amp Morgan, 2012,August 24th). The research on how other healthcare organizations hasaddressed the issue will provide a model that HCA hospital will useto implement appropriate solution to curb the reported fraud cases(Morgan &amp Morgan, 2012, August 24th).


U.S.Department of Health and Human Service (2015). Healthinformation privacy: Data breach results in $ 4.8 million HIPAAsettlements.Washington, DC: U.S. Department of Health and Human Service.

InMay 2014, this article which was written by the Department of Healthand Human Services (U.S. Department of Health and Human Service,2015). The article explores the scandal on the $ 4.8 million of HIPAAsettlement which arose as a result of data breach. The articleentails a research on the causes of this scandal and providesinformation on the measures taken by the company to prevent theoccurrence of such incidence again (U.S. Department of Health andHuman Service, 2015).

Inessence the article finds out the possible factors which contributedto the financial downfall of the Community Health System Inc. Justlike the HCA several other health care organizations do not adopt theprotective measures in an attempt to avoid the high cost of usingmodern technology consequently giving rise to severe incidents ofdata breaches. As such this shows that most of the affected healthcare centers are often aware of the prevailing risks, but basicallythey overlook the protective measures. According to a researchcarried out by the U.S Department of Health and Human Service 2015indicated that the scandal of data breach in 2010 affectingsignificantly the Community health System Inc. was brought about byfour major factors (U.S. Department of Health and Human Service,2015).

Firstis the disclosure of the Healthcare records of about 6,800 clients tothe popular search engines like Google because the hospital errantlyconfigured its system. The second factor is the failure of thehospital management to undertake adequate analysis on its ITapplications, data system and equipment. The third factor was thefailure by the management to adopt the processes for monitoring andassessing data systems that were linked to the patient’s database.Moreover, the last factor was the failure of the hospital to adoptsuitable policies to approve access to client database. However,since then the Community health System Inc. has put concertedmeasures to protect its data against unnecessary disclosure. Afteradopting the changes the Community Health System Inc. saw atremendous improvement in its performance.

TheHCA should adopt the same strategy it must mitigate costs and shouldavoid increasing revenue with an aim of fulfilling the demands of itsinvestors and shareholders. In essence the HCA hospital must put thepatient’s interest a top priority by providing appropriate medicalexpenses (Morgan &amp Morgan, 2012, August 24th). In addition, thehospital should stop misleading the patients and in effect understandthat quality treatment offered to the patient directly improve thehospital brand image.

Researchon Effective Marketing Strategies


The is experiencing stiff competitionfrom other hospitals in its attempt to make profit. To increase itsprofit seeking venture the hospital has found itself involved inoffering high-quality care for profitability reasons. But to achievethis end the hospital has used false information in a bid to increasethe revenue collected at the expense of the patient. As such thepublic has lacked confidence with the hospital and it needs aneffective marketing strategy to address the negative public image(Morgan &amp Morgan, 2012, August 24th).


Chakraborty,R. &amp Majumdar, A. (2011). Measuring consumer satisfaction inhealth care sector: The applicability of Seroquel. Journalof Arts, Science, and Commerce,2 (4), 1-12.

Thearticle analyzes the importance of effective marketing and theexperienced stiff competition in the healthcare industry (Chakraborty&amp Majumdar, 2011). According to the author, effective brand imageaffects significantly the profitability of any organization. In thearticle information is provided on the financial loss of communitySystem Inc.

Alsothe article offers the approach adopted by the Community HealthSystem to reinvent its marketing strategies to increase itsprofitability. Owing to the heightened competition witnessed in thehealth care industry, there is a need to look for appropriatestrategies to help them counter the stiff competition and thus keeptheir profit making venture. The main threat to profit making ventureby several organization is the lack of effective strategies todevelop the brand image and to convince the target consumers toaccept the services offered (Chakraborty &amp Majumdar, 2011).

Thebrand image of a healthcare facility is usually elevated in a verycompetitive market by adopting a range of effective strategiesdeveloped to inform and convince the potential clients. At mostcases, it is the stiff competition coupled with the lack of adequatemarketing strategies which negatively affect the profitability ofmany organization health care centers for instance the HCA andCommunity Health system Inc.

TheCommunity Health System Inc. experienced a loss of $ 2.3 millionloss, because of continued operations as the first quarter of 2015financial year was ending. This heavy loss is attributed to stiffcompetition, decline in the attractiveness of their acquisitions, andthe failure by facilities to attain the client’s obligations. Theincreased level of competition in the healthcare sector witnessed inthe recent past, calls upon immediate measures to be adopted tofacilitate a best way forward and thus ensures it maintain itscompetitive ability and profit making venture. Therefore, HCA mustadopt an effective marketing and acquisition and retention ofprofitable assets to help it increase its profitability.


Bloomberg(2015). AdCareHealth Systems Inc. Bloomberg.Retrieved from

Chakraborty,R. &amp Majumdar, A. (2011). Measuringconsumer satisfaction in health care sector: The applicability ofservqual.Journal of Arts, Science, and Commerce, 2 (4), 1-12.

Ellison,A. (2015, May 1). HCAhospitals settle fraud case that could have national implications.Becker’s Health Care.Retrieved from

U.S.Department of Health and Human Service (2015). Healthinformation privacy: Data breach results in $ 4.8 million HIPAAsettlements. Washington,DC: U.S. Department of Health and Human Service.

Weiss,N. &amp Miller, S. (2015). Thetarget and other financial data breaches: Frequently asked questions.Washington, DC: Congressional Research Service.

Hospital Corporation of America

Hospital Corporation of America

HospitalCorporation of America

HospitalCorporation of America

The (HCA) is a for-profit organizationthat operates in the health care industry. HCA was founded in 1968 bya group of health care professionals, including Dr. Thomas FristSenior, Dr. Thomas Frist Junior, and Jack Massey. Its headquarters islocated in Nashville, in the state of Tennessee. Currently, HCAmanages a network of 165 hospitals and about 115 freestanding surgerycenters that are located in more than 20 states (Hospital Corporationof America, 2015). Since its foundation, HCA has been offeringgeneral health care services, but it has a key interest in cancerresearch and treatment. This implies that HCA has demonstrated anyinterest in venturing in new business lines, but instead focuses onexpanding its coverage and the size of its existing health carefacilities in order to serve more clients.

Theissue of the IPO in 1969 is among the key historical events thattransformed HCA by giving it an opportunity to grow tremendously(HCA, 2015). In addition, the merger between HCA with 255 hospitalsbetween 1970s and 1980s expanded the geographical coverage of thecompany more than any time in its history. Although most of thehistorical events facilitated the growth of HCA, the discovery of thefirst fraudulent event in the year 1997 damaged the image of thecompany (Korten, 2009).

Thekey competitors of HCA include the Community Health System Inc.,Adcare Health Systems Inc., American Caresource Holdings Inc., andAdeptus Health Inc (NASDAQ, 2015).

Statementof the problem

Inits mission statement, HCA holds that the company is committed toputting the patient first and enhances human life by offering highquality and affordable care. However, customer complaints due to poorservices and medical errors have been increasing with time. Forexample, a trauma patient sued HCA in 2015 for poor quality servicesthat she received from the company’s trauma center (Walser, 2015).The patient claimed that she was treated by non-specialists. In asimilar case, the HCA was accused of performing unnecessary andoutdated procedures for cardiac patients, which was attributed to thepresence of rogue doctors (Abelson &amp Julie, 2012).

HCAholds that it is guided by the values of integrity, fairness, andhonesty in its endeavor to offer quality services to its clients(HCA, 2014). However, a series of fraud incidents that has beenreported since 1997 to date demonstrate the lack of effectiveleadership and lack of integrity in health care practices. HCA hasbeen accused of keeping two records, one that is shown to thegovernment administrators and one that contains the actual figures(Mahar, 2013). The purpose of keeping two books has been to get morereimbursement from Medicare and other state funded insuranceprograms.

Researchquestion 1

Theemployment of rogue doctors has resulted in poor customer services atHCA. Given the challenge of unqualified and unspecialized health careproviders, will HCA manage to restore consumer trust and deliverquality services?


Thenumber of complaints raised by consumers regarding the quality ofservices offered by HCA has been increasing with time. This challengecan be attributed to the employment of rogue health care providersand doctors who have not specialized in particular medical fields,which is a confirmation that HCA does not value its customers as itclaims. By disclosing the relationship between the lack ofspecialized doctors and the quality of health care services, thestudy will inform the management about the need for including specialskills in its workforce.

Researchquestion 2

Giventhe increase in case of fraud, will the management of HCA be able torestore sanity, integrity, and honesty in the company?


Casesof fraud within HCA facilities have been reported since 1997 to-date,which can be attributed to poor executive leadership. Fraudulentpractices demonstrate the management of HCA as a greed team ofleaders, who have been keeping two sets of books in order to enrichtheir organization and themselves. By studying the impact of fraud oncompany’s image in the long-run, the study will inform themanagement on the significance of maintaining integrity when managingHCA practices.


Theproposed study is critically important because it will reveal the keyfactors that are likely to affect the future growth and the goingconcern of HCA in a competitive health care sector. For example,cases of fraud have profound impacts on the reputation of the companyand many customers and insurance agencies might lose their trust inHCA (Mahar, 2013). Consequently, HCA will lose its market share tocompetitors. Similarly, poor customer services will create anopportunity to HCA competitors to attract the current HCA’s loyalcustomers, especially those who are sensitive to the level of qualityof services. Therefore, the proposed study will explore challengesthat might determine the survival and growth of HCA now and in thefuture.

Purposeof the study

Thepurpose of the study is to reveal the potential impact of fraud andpoor customer services on the company. The study will specificallyfocus on the relationship that exists between the reputation of thecompany and cases of fraud as well poor customer services. Afterstudying these relationships, the study will identify the possiblesolutions on how HCA’s management can enhance the quality ofservices and contain cases of fraud. A successful containment offraud and enhancement in the quality of care will promote the imageof HCA, which will in turn enhance its growth and secure its goingconcern.


Thestudy will be based on a qualitative design, which will beaccomplished by reviewing relevant research journals and othercredible articles. A qualitative design will facilitate an in-depthanalysis of the underlying issues (Agee, 2009). The review of theprevious articles will make it possible to comprehend how fraud andpoor customer service can affect the image of the company andpossible solutions that can be applied on these issues. Most of thesearticles will be accessed online, while the hard complies will beobtained from the library.


HCAis a for-profit health care organization that has been in existencesince 1968. HCA grew tremendously by acquiring other health careorganizations. However, cases of fraud and poor customer service haveaffected its reputation in a negative way. These challenges can beattributed to poor executive management and the lack of emphasis onthe quality of the company’s workforce. A study that focuses on therelationship that exists between the reputation of the company andcases of fraud and poor customer services is important because itwill help the management understand factors that are likely to hinderthe future growth of the company. A qualitative study is the mostappropriate design for this study because it will help the researchconduct an in-depth investigation of the issues and identify the mostviable solutions.


Abelson,R. &amp Julie, C. (2012). Hospital chain inquiry cited unnecessarycardiac work. TheNew York Times Company.Retrieved September 24, 2015, from

Agee,J. (2009). Developing qualitative research questions: A reflectiveprocess. InternationalJournal of Qualitative Studies in Education,22 (4), 431-447.

HospitalCorporation of America (2014). Mission and values. HCA.Retrieved September 24, 2015, from

HospitalCorporation of America (2015). HCA feed reader. HCA.Retrieved September 24, 2015, from

Korten,T. (2009, September 30). Rick Scott profits off the uninsured. TheAssociated Press.Retrieved September 24, 2015, from

Mahar,M. (2013, June 14). Medicare fraud and for-profit hospitals: A storythat never ends. HealthInsurance Resource Center.Retrieved September 24, 2015, from

NASDAQ(2015). HCA Holdings Inc: Competitors. NASDAQ.Retrieved September 24, 2015, from

Walser,A. (2015, September 4). HCA trauma patient sues hospitals formalpractice, claiming no specialist was able to treat her. ABCAction.Retrieved September 24, 2015, from