The Mid-Atlantic Permanent Medical Group: Spreading the Integrated Care Delivery Model

By Robert Burgelman, Mimi Liu, Ziv Shafir
2019 | Case No. SM319 | Length 20 pgs.
This case continues the story of Dr. Robert Pearl, who had guided the Permanente Group of Northern California through challenging years in the health care industry. While Kaiser Permanente had a long history and well-established reputation on the West Coast, creating a profitable health care system in the mid-Atlantic region proved difficult for a number of reasons. For one, Kaiser Permanente had not made a mindful transfer of the history, culture, and mission from Northern California to the operations of its Kaiser Permanente Mid-Atlantic States. And market dynamics were different on the East Coast, making it difficult for Kaiser Permanente to compete on its core strength: care delivery. To address these problems, Dr. Pearl dispatched seasoned physician leaders from Northern California, assigning them help transform the mid-Atlantic operations. He focused on a strategic and operational plan to provide 15 to 20 percent better quality and service and 10 percent lower price compared to the competition, and on recruiting dedicated primary care physicians willing to be more flexible about their scheduling and the specific hours they worked.

Learning Objective

Students will learn about the leadership and strategic challenges of running a large health care organization in a sector that continues to undergo profound changes, and also explore key insights into how to adapt successes in one market to another, quite different, market.
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