Good Hands

i. How is Good Hands current performance?

Good Hands current performance is downward spiral and sliding towards bankruptcy whiles other competitors doing well.

ii. Is Good Hands mishap in the performance due to the industry?

In my opinion, Good Hands mishap in the performance due to the external and internal factors.

External Factors

• Reductions in federal funding of health and eldercare.

• Increasing number of lawsuits filed by patient families and attention by the media to incidents of poor care of the elderly.

• Competitors manage to increase their profitability and market share but in the same time Good Hands sliding toward bankruptcy.

Internal Factors

• Lack of succession plan at Good Hands with no formal internal effort to develop leadership for the future of the company.

iii. What is the state of healthcare industry (eldercare)?

Good Hands Healthcare was one of the largest companies in the industry, and they had the largest share of the nursing home market, represented 3.8 per cent of the market. Good Hands is the top 25 players accounted for only two per cent to five per cent of the market.

Health care service providers were subject to various federal, state and local health care statutes and regulations. State license were required to operate health care facilities and to participate in government health care funding programs, such as Medicaid and Medicare.

Medicaid

• Operated by individual

• Funded by the federal government

• Designed to provide health care to the indigent

• Most of the state Medicate programs operated on a cost-based reimbursement system

Medicare