1) what are the organisational ethicalleadershipproblems that resulted in columbia/HCA's misconduct?2) discuss thestrengths and weakness of HCAs current ethics programe.does this programe appear to...

Hospital corporation of America 1
Running Head: A REPORT ON HOSPITAL CORPORATION OF AMERICA (LEARNING
FROM PAST MISTAKES)
Name
Institution
Date
Hospital corporation of America 2
Executive summary
The management of Columbia/HCA faced allegations of malpractices ranging from
shorter training periods for employees. This period was supposed to take six months however
the period took only two weeks. Another allegation that was brought forward was patient
dumping where the company discharged emergency room patients and going ahead to
transfer them when they were not fit. Excessive compensation was also another aspect that
the organization practiced. INFACT dad challenged the publicly to an extent of putting it in
the hall of shame a place that is occupied by corporations that manipulated public policy.
An ethical leader operates in an ethical way irrespective of the circumstances, the
challenges they face and conflict. Leaders are faced by scenarios that could lead to ethical
dilemmas. Leaders are faced with decision making responsibilities ranging from procedures,
policies, personal issues, finances, confidentiality, performance management and contracts. A
decision that a leader takes will either tear or build the culture because they assert ethical
leadership setting examples that the rest will follow.
From the case we can note that an ethical consideration that arose from the
organization was a focus on profits at the expense of the community this was evidenced by
the overcharged of federal and other medical programs. Doctors were paid for signing non
existing procedures while the dumping of patients was also unethical. The period for training
was reduced to a duration that is not acceptable. The company went to a level of closing local
community hospitals to retain their market position. Staff reduction was another practice that
was being carried by the company. Acquisition of not for profit community hospitals
Columbia/HCA did not inform its doctors or the members of the public.
The company was able to turn around and developed an ethics program. Employees
were trained and they undertook certification tests. A team of 500 employees headed by Ala
Yuspeh oversaw the compliance to ethical standards. A toll free number was introduced and
an offender was punishable for unethical behavior. This made the company successful and it
was removed from the INFACT list. On the contrary the company concentrated on financial
performance and was unable to follow Sarbanes- Oxley Act. To sensitize its employees on
ethical issues, the company has to develop a high level of trust and a reporting system where
Hospital corporation of America 3
the employees are free to report any unethical practices they detect. Efforts to encourage
whistle blowing are a positive move towards developing an ethical culture in the
organization.
Hospital corporation of America 4
Introduction
According to the case study, Columbia/HCA is accused of malpractices that can be
regarded as unethical. Among the accusations that are made include Shorter training period
for instance a six month training period going for only 2 weeks, patient dumping is another
practice that was rampant for example discharge of emergency room patients and even
transferring them when they are not yet in stable conditions to other hospitals. The hospital
was also accused of excessive compensation. Corporate watchdog INFACT challenged the
hospital practices publicly inducting it into its hall of shame a place occupied by corporations
that publicly manipulated public policy while degrading public health (Ferrell 2006).
Ethical and legal problems begin
The biggest healthcare fraud in late July 1997 involved Fawcett Memorial Hospital
in Port Charlotte, Florida and Columbia /HCA. The government undertook investigation and
indicted three mid level executives from Columbia /HCA Healthcare Corporation for having
filed false cost reports relating to Fawcett resulting to losses amounting to $4.4 million from
government programs. The government made allegations that Columbia/HCA has gained
some of its profits from overcharge of Medicare as well as other federal health programs.
Other allegations were illegal incentives being paid to physicians and overuse of home health
services (Ferrell 2006).
The government investigators accused Columbia/HCA of engagement in systematic
efforts aimed at systematically defrauding government health care program. Confidential
witnesses in a report drafted by the investigators stated that Richard Scott a former
Columbia/HCA CEO and David Vandewater the former president were routinely briefed on
matters that related to Medicare reimbursement claims the government claimed were
fraudulent. Implicated in the scandal was also Samuel Greco the former chief of operations.
An issue of concern was whether Columbia/HCA fraudulently tests expenses relating to
homecare laboratory and whether they mis-categorized the other expenses with the aim of
inflating amounts that it sought for reimbursement (Ferrell 2006).
1. Organizational ethical leadership problems that resulted in Columbia/HCA's
misconduct
Hospital corporation of America 5
According to Ferrell (2006), ethical behaviors are actions that are in line with
acceptable professional standards of conduct. Such behavior is in line with common moral
values, integrity as well as suitable principles of conduct. When an individual is confronted
by moral contradictions, the action that they take depicts their moral behavior. An action that
a leader takes when faced by conflicting priorities or moral ambiguity determines his or her
ethical behavior and this is not what they assume to be practicing. The bridge between
actions and ethics is what helps in understanding ethical behavior. A leader who is ethical
will operate on a foundation that is ethical and will try to bridge the gap between practice,
policy and ethical theory and strive to advance an ethical culture.
Tenna (2012) says that ethical leadership is beneficial to leaders simply because their
juniors, the organization at large and professions are built on ethical considerations.
Promoting ethical culture in an organization,...