The road ahead: when the city hospital system brought in a consultant, was it for advice--or credibility?

City Limits MagazineVol. 35 Nbr. 5, November 2011

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CHAPTER THREE

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The road ahead: when the city hospital system brought in a consultant, was it for advice--or credibility?

Axing hospital workers and closing pediatric clinics are never popular decisions to make. And when the New York City Health and Hospitals Corporation hired Deloitte Consulting LLP in September 2009 to help the agency with restructuring and cost containment, the consulting firm knew of no comparably challenged health care delivery system in the U.S. against which to size up the needs and problems of New York City's public-hospital system. But that did not dissuade Deloitte from taking the job.

Quite the opposite, in fact. Indeed, Deloitte had every reason to power forward. Having bested its closest competitors in a series of presentations to senior HHC management in the spring of 2009, the firm was not just adding another client to its portfolio. It was also keeping a firm grasp on the latest holy grail of management consulting--the public sector and its money.

Moreover, because Deloitte was hired through an expedited negotiation acquisition process, with HHC arguing that there were only a limited number of firms capable of doing the work, it meant that it would be difficult for anyone, like the city comptroller or the unions representing HHC workers, to kick up a fuss. And while the amount of t...

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