Mtoa Case Study

Case Summary

Massachusetts General Orthopaedic Associates (MGOA), a specialized unit with Massachusetts General Hospital (MGH), is a prestigious medical organization with a mission of providing high quality patient care, research and teaching. Until quite recently, however, MGOA had been running annual financial deficits, which were “financed” by dipping into endowment and borrowings from MGH. With new leadership at both MGH and MGOA and some new management initiatives, the financial deficit was turned into a modest profit. For the longer term, however, Dr. Harry Rubash, head of MGH, and Dr. James Herndon, head of MGOA, have proposed a new physician compensation plan featuring a base salary, a development fund tax, a bonus, and periodic adjustments to base salary based on individual physician performance—in particular, the physician’s profitability for MGOA. Initial physicians’ reaction to the proposed plan vary notably, but Rubash and Herndon are determined to pursue the plan and wonder how they can best “sell” it to MGOA physicians.MGOA Physicians Case Analysis Guidelines

Analyze the Performance Pay for MGOA Physicians case independently using the Nadler and Lawler reading on Expectancy Theory and my corresponding lecture. The case is briefly summarized at the bottom of this page. The guidelines for preparing the case analysis are as follows.

1) Briefly describe the “pay strategy” underlying the proposed physician compensation plan at MGOA. Keep this description brief. Consider the alignment of this strategy with the organization’s mission.

2) Explicitly use Expectancy Theory to evaluate the strengths and weaknesses of the proposed compensation plan, including its likely effects on physician motivation and performance.

3) State the main conclusions derived from your analysis.

4) State recommendations you would offer to Rubash and Herndon for gaining physician acceptance of the proposed compensation plan.

Your case write up should be...