Reference no: EM131903666

Question: Medical Information Systems Maggie Pressman, Paul Goldberg, and Steve Youngblood are equal partners in their own consulting business, which specializes in designing and installing computer-based information systems for physicians. These systems usually include patient records, prescriptions, billings, and medical insurance processing. In some cases, the physician customers have a manual system and want to computerize it; in other situations, they have an existing computer system that needs to be upgraded and enhanced. In most cases, the consulting firm purchases the necessary hardware as well as some packaged software. They add some of their own customized software to meet the specific requirements of the physician, and they install the complete, integrated system. They also provide training for the employees in the physician's office.

The cost of most of these projects ranges from $10,000 to $40,000, depending on the amount of hardware needed. Most physicians are willing to spend such amounts rather than hire an additional office person to keep up with the ever-increasing paperwork. Dr. Houser, one of the physicians for whom Paul had done a project in the past, left her private practice to join a large regional medical practice. This organization has six offices throughout the region, with an average of eight physicians in each office. Two of the offices also include a pharmacy. The organization employs a total of 200 people. Dr. Houser contacted Paul and asked if his consulting firm would be interested in submitting a proposal to upgrade the information system for the entire regional medical practice. The project will include integrating the six offices and two pharmacies into one system; the physicians will eventually hire an information systems person to oversee the operation of the system.

Presently, each office has its own system. Paul learns from Dr. Houser that some of the other physicians have patients who work for large consulting firms that they think could also do the job. She says that a team of representatives from the six offices and two pharmacies, with the help of the organization's purchasing manager, has prepared a request for proposal. The proposals are due in two weeks. The RFP was issued two weeks ago to the larger consulting firms, which are already working on their proposals. The purchasing manager was not familiar with Paul's consulting firm, and that is why he did not receive a copy of the RFP. Dr. Houser tells Paul that she is sorry she cannot talk to him more about this, but she has not been involved like some of the other physicians, who discussed ideas with their patients who work at the larger consulting firms before the RFP was issued. Dr. Houser says that she will have the purchasing manager send Paul the RFP if he is interested and will be able to submit a proposal within two weeks. "Sure," Paul says. "I'll drive over this afternoon and pick it up!" He asks if she knows how much money the medical practice has allocated for the project, but she does not. Paul picks up the RFP and makes copies for Maggie and Steve. Paul is enthusiastic about the opportunity when he meets with them.

"If we do this project, it will propel us into a whole new business arena," Paul tells them. "This is the big break we've been waiting for!" he shouts. Maggie moans, "This couldn't have come at a worse time. I'm working on three projects for other physicians, and they're all hounding me to finish up. In fact, one of them is not very satisfied. He said that if I don't finish his project in two weeks, he doesn't want it and won't recommend us to other physicians. I'm working 16 hours a day to keep up. I'm just overcommitted. I agree with you, Paul, it is a great opportunity, but I'm afraid I won't be able to spend any time helping with the proposal." Steve wonders out loud, "Preparing the proposal is one thing, but can we do the project? I think we have the expertise among the three of us to do such a project, but this is a really big one, and we have other customers, too." Paul replies, "We can hire more people. I have a few friends who would probably want some part-time work. We can do it! If we don't go after projects like this, we'll always be a small firm, each of us working 12-hour days for peanuts. And these small jobs for individual offices aren't going to last forever. Someday they'll all be computerized, and we'll be out of business. What do we have to lose by submitting a proposal? We can't win if we don't submit one!"

CASE QUESTIONS

1. Why did this team not receive the RFP at the same time the larger consulting firms did?

2. Why is this team being considered as a candidate to submit a proposal?

3. Develop a bid/no bid checklist to help determine if they should submit a proposal.

4. What should Maggie, Paul, and Steve do? In explaining your answer, address the concerns of each of the three team members.