MIS 204.1 Final Paper
Solution Brief between Washington Mercy Hospital and DCS Inc.
HISTORY OF WMH
Washington Mercy Hospital is a non-profit, full-service hospital located in a nearby
suburb of Washington, D.C. It is of medium size, with only 450 beds but offers a wide variety of
services, including medical, nursery, obstetric, pediatric, and surgery care. The hospital also has
a well-equipped emergency room, pediatric and baby clinic, senior health clinic, and an
extensive diagnostic testing facility on-site.
Washington Mercy is the only full-service hospital in miles and thus has a fairly large
hold on the area as a trauma and emergency room center. But over the years many small,
specialty doctors have opened practices around the area such as an ear nose and throat doctor as
well as surgery centers and urgent care facilities. On top of that, changes in Medicare and
Medicaid insurance plans has limited time stayed in the hospital, prompting more visits to
specialists than to a general hospital like Washington Mercy.
In response to these challenges and changes, Washington Mercy wants to establish an
ambulatory surgery center. This facility will be designed to meet the patients’ needs directly and
as quickly as possible, having all diagnostic testing in the facility, to cut time between arrival and
actual surgery, as well as a registration/waiting area and a private section for physician
Although the ambulatory surgery center would compete with smaller surgery centers and
the specialists in location and area demographics, it would still not compete in price for the first
few years in its capacity for the initial cost of the building and hiring of new, certified personnel.
Washington Mercy wants to be able to compete with the smaller specialty doctor’s
offices in the area. Being the only hospital in the suburbs, it has taken control of emergency
room visits. But with the increase in the specialty offices, as well as the change in insurance
policies, Washington Mercy is losing its foothold on the area. Even though it is a not-for-profit
establishment, there are still bills and paychecks to be paid.
With this new surgery center, as well as a new information system revamp the managers
at Washington Mercy believe they can drive up revenue and establish a more automated system
for their employees. This system is designed to take care of such manual tasks as billing and
accounting, and would free up workers with repetitive-entry jobs to fulfill more meaningful
tasks. This system, as well as the company putting it together, will be discussed in more detail
further in this brief.