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Case 14 Columbia/HCA

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Eltimon van der Merwe

on 20 February 2013

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Transcript of Case 14 Columbia/HCA

Hospital Corporation of America Learning from Past Mistakes Case 14 Background Discuss the strengths and weaknesses of HCA's current ethics program. Does this program appear to satisfy the provisions of the Federal Sentencing Guidelines for Organizations and Sarbanes-Oxley Act? Question 2 What other suggestions could Columbia/HCA have implemented to sensitize its employees to ethical issues? Question 3 Ferrell, O. (2012). Business ethics. (9 ed.). Mason: Cenage.
Goldsmith, J. (1998, March/Apri). Columbia/hca: A failure of leadership. Retrieved from http://www.healthfutures.net/pdf/w-c-hca.pdf
Hca hospital corporation of america. (2011). Retrieved from http://hcahealthcare.com/
Johnson, M. (2004). 2004 federal sentencing guidelines require employers to periodically train all employees on workplace ethics. Retrieved from http://www.globalcompliance.com/LinkClick.aspx?fileticket=hAchF4IXGZ4=&tabid=170
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van der 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References Question 1 What were the organizational ethical leadership problems that resulted in the Columbia/HCA's misconduct? History Continued Founded in 1968 by Dr. Thomas Frist SR., Jack C. Massey, and Dr. Thomas Frist Jr.
Manage Park View Hospital in Nashville TN
Merged with Columbia Hospital Corporation
Columbia founder Richard Scott became CEO
Richard Scott named one of Time magazine's most influential people of 1996
Columbia/HCA had named most admired healthcare company in 1997 1997 starts the biggest healthcare fraud case in American history
Columbia/HCA pleaded guilty to 14 Felonies
For:
Committing fraud
Falsely billing Medicare
Violating federal anti kickback laws
They paid over $1.7 billion in fines
Question .1 Leadership was focused on making money not healthcare
Plan was to become a $50 billion company
Their Corporate philosophy was:
Acquire, affiliate, or annihilate
Encouraged managers to whatever is necessary to increase profits.
Did not care about the stakeholders they betrayed Question 2 Richard Scott: Ethical or unethical? HCA's Current ethical Program They have developed a code of conduct for employees
A compliance committee of the Board of Directors and an internal compliance committee was created
They have employed ECO's at each facility
Created a hotline for employees to report unethical behavior
Feb 12, 2011 200 leaders from HCA starts a ethical and compliance officer course The only guideline that is not yet satisfied is no 4:
4. Audit, monitor, and periodically evaluate the program’s effectiveness, and provide a way for employees to report concerns about illegal behavior without fear of retaliation
They are in the process of establishing a program to satisfy this guideline Question 2 Continued Satisfaction of the Federal Sentencing Guidelines for Organizations and Sarbanes-Oxley Act Question 3 Columbia/HCA should have implemented ethical training program from the beginning
Given incentives for being ethical
Placed ethical managers and leaders in all positions
Created an environment for ethical behavior to thrive
Focus on healthcare, not profit HCA Philanthropy Activities HCA Hope Fund
Employee-run charity
Help employee and immediate family members with financial hardships.
Not an employee benefit The HCA Foundation
Fund organization that engage in promotion of health and well being
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