Case Interview Question #00318: You are a new management consultant working at consulting firm Mitchell Madison Group and your managing partner has just given you the following task: Your client Massachusetts General Hospital (MGH) is a teaching hospital and biomedical research facility in the West End neighborhood of Boston, Massachusetts. It is the largest hospital in New England with 1,057 beds. Recently, the CEO of MGH is concerned about: 1. declining profits, 2. falling revenues, and 3. rising costs at her hospital.
The partner of your consulting firm wants you to prepare the proposal that will convince the CEO of Massachusetts General Hospital to retain your firm’s consulting services. Your managing partner is the resident expert on healthcare issues and you have ten minutes to query him for information before he departs to London for another client engagement. How would you structure this problem and what questions would you ask of him?
This is a profitability issue. So, the framework I would use is: Profits = Total Revenue – Total Costs = Price * Quantity – Cost * Quantity. Detailed discussion of the case is shown below.
Remember what developing a proposal entails; it is not cracking the case, but finding the major issues and developing some preliminary hypotheses.