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Business Division Addresses the Health Care Crisis

An Interview With Thomas S. Campanella, Director, Health Care MBA

October 2003

Health care is on every legislative agenda from the local and state to the federal level. In spite of public concern and political pressure to find a lasting remedy for the crisis, no clear solution has been proposed which is acceptable to each of the diverse constituencies that make up the health care system in the United States.

“The healthcare crisis is best described as a ‘puzzle.’ Everyone has an idea of how some of the pieces fit together but no one knows what the completed picture is supposed to look like,” said Prof. Tom Campanella, director of B-W’s MBA in Healthcare. Prof. Campanella said that there are many pieces in the healthcare puzzle including hospitals, physicians, insurance carriers, managed care providers, employers, drug manufacturers,consumers and numerous levels of government.

“Each segment has its own view of where it should fit into the overall picture, but has little or no understanding of the other pieces or how they should work together,” he said.

 However, Prof. Campanella said that a solution would be found when society develops a consensus about the goals of the healthcare system and designs a system that keeps all of the pieces of the puzzle locked together. He said that societal goals must include the optimum balance of access to care, quality outcomes and cost control—both in the short and long-term.

“The search for the optimum balance between access, cost and quality will involve much debate, but we, as a society, can no longer hide our head in the sand with regard to such an important issue. We must decide if we should continue with the tug-of-war that exists today between the various stakeholders or we can approach this complex problem as a relay race toward the ultimate goal of a better, sustainable health care system,” he said.

No easy answers
The American public has yet to accept the fact that there will be no simplistic solution to the complex healthcare crisis. The ultimate solution will be developed within the context of an overall strategy reflecting decisions about critical ethical and societal issues. Perhaps the most important of these issues is that of access to healthcare services and resources.

“The current generation did not discover the healthcare problem. Understanding today’s issues is somewhat easier if one understands the history of healthcare in the United States. History is critical to understanding the present and preparing for the future”, said Professor Campanella.

He said that prior to 1875 the family was the center of social and economic life in American society, and the natural provider of care for the sick. Prior to the 1900s hospitals were used mainly to isolate the sick. From 1900-1930, advancements in public health initiatives and medical training enabled hospitals to become an important part of the American health care system. The 1930s brought a call for national health insurance because access to this “new” American health care system was largely limited to those that could pay. The private sector, in cooperation with the public sector, addressed the issue of access in a focused and coordinated manner. Blue Cross Insurance was founded in 1938 by the hospitals to increase access for all working Americans, which in turn increased financial stability for hospitals. Shortly thereafter, Blue Shield was founded by the physicians with similar results.

The government helped to increase both the access to health care and the expansion of the hospital industry during the 1940s by classifying health benefits as non-taxable and by direct financial assistance to build hospitals through the Hill-Burton Act. Finally, unions bargained for health care benefits as a way to better serve their members. Over the next 25 years—as a result of these initiatives—some form of employer-paid healthcare insurance would cover 65 percent of Americans. The addition of Medicare and Medicaid in the 1960’s increased the percentage of Americans covered by some form of health care insurance to approximately 85 percent.

“Clearly, history shows that American society was capable of addressing access to the health care issue in a focused and coordinated fashion. Now we must address the issues of cost and quality of outcome,” Prof. Campanella said.

“The health care system is not centrally controlled in America as it is in other countries. Consequently, it is critical for the key stakeholders in our system— hospitals, physicians, managed care organizations, employers, government, consumers, drug companies and ancillary providers—to work in a coordinated fashion. The central challenge is to direct the different backgrounds, experiences, and perspectives of these constituents toward a common objective. And, to do so successfully we must create an environment of trust,” said Prof. Campanella.

“We believe that the Health Care MBA at Baldwin-Wallace, with its student body from different areas of the health care sector, can break down some of the barriers to a better health care system,” he said.

The Role of Professional Management
B-W’s Healthcare MBA program prepares health care professionals to analyze the issues in depth and from all perspectives, understanding all pieces of the puzzle. Prof. Campanella explained that B-W’s approach to educating professional healthcare managers includes providing the best instruction in management theory and practice strengthened by the involvement of experienced leaders in the healthcare field.

“We recognize that healthcare is a business; therefore, B-W’s Healthcare MBA students must master all of the core business disciplines including accounting, finance, economics strategic planning and operations management. However, health care is a unique business and our approach combines the theoretical with the career experience of leading area healthcare executives.

“The combination of excellent academic instruction by the Business Division faculty and real-world experience of professional managers gives B-W’s health care MBA an advantage. Beginning on the first day of the program, our students gain skills and knowledge that can be applied immediately to their jobs,” Prof. Campanella said. “We draw upon the experience of executives from all fields of the healthcare business including those from the pharmaceutical, medical technology, managed care and hospital industries. And, because we select our MBA students from within the healthcare industry, and teach in small classes of fewer than 20 students,each student’s experience becomes an important part of the program,” he said.

Prof. Campanella emphasized that the Business Division is committed to maintaining an environment in which both faculty and students thrive. Rather than traditional “topdown” classes, students and faculty pursue a team approach to learning preferring seminars to traditional lectures. Finally, he noted that because Baldwin-Wallace’s Health Care MBA is a weekend program it fits well with the schedules of busy students and the region’s leading health care executives who serve as teachers and guest lecturers.

Not for Everyone
B-W’s MBA in Healthcare is not designed for everyone, Prof. Campanella said. “The B-W program was created for students who are passionate in their desire to improve the healthcare system at the employer and regional level. We are not interested in students who are seeking merely certification. We offer much more than a two-year program of study. We offer a career-long involvement with the College, the Business Division, individual faculty and, of course, other students,” Prof. Campanella said.

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Thomas S. Campanella Director, Health Care MBA, Baldwin-Wallace College
Thomas Campanella was named Director of B-W’s Health Care MBA in May 2003. He has nearly 20 years of experience in the health care industry including insurance, managed care, physician and hospital management. He has held a variety of senior level positions including Vice President of Health Care Finance and Care Management for Blue Cross & Blue Shield of Ohio/Medical Mutual of Ohio. He was Associate Dean of Ohio University College of Osteopathic Medicine and Chief Operating Officer of the University’s Osteopathic Medical Center. As Associate Professor of Social Medicine at Ohio University, Campanella taught Health Care Finance, Health Care Economics, and Managed Care to undergraduate, graduate and medical students. Prof. Campanella earned his B.A. and M. A. in Economics from Ohio University and his J.D. from the Cleveland-Marshall College of Law. He also is a CPA and maintains an Of-Counsel relationship with Baker & Hostetler law firm where he specializes in health care and employee benefit law.