PROGRAM EVALUTION OF THE MUTUAL EXPECTATION METHOD OF MOTIVATION (MEMOM) AS MEASURED BY NET PROFIT AND NURSING TURNOVER CHANGE FROM 2000 TO 2004 IN COMMUNITY NON-PROFIT HOSPITALS

by

Eric R. Oestmann

A Dissertation Presented in Partial Fulfillment

Of the Requirements for the Degree

Doctor of Philosophy

Capella University

February 2006

Abstract

Healthcare in the 21^st Century has significant difficulty balancing costs and quality care. Two major factors related to a community non-profit hospital’s ability, or lack thereof, to balance costs and quality of care include profitability and nursing turnover. While these factors have been identified in the literature, few organizational solutions designed to increase profit and decrease nursing turnover have been reported. However, one programming solution entitled the Mutual Expectation Method of Motivation (MEMOM^TM) was implemented in 33 community non-profit hospitals during the year 2000. The purpose of this research was to evaluate the effectiveness of the MEMOM program through the assessment of significant differences in organizational profitability and nursing turnover between 2000 and 2004 using a single group pretest-posttest design. The average improvement in net profitability for the combined 33 hospitals was significant (p <0.001) and +2.69% after four years of MEMOM implementation. The average reduction in nursing turnover rates for the combined 33 hospitals was also significant (p <0.001) and -6.51% after four years of MEMOM implementation. The cost savings to the combined 33 MEMOM participating hospitals due to a reduction in nursing turnover was estimated to range from approximately $6.2 in direct costs to $22.7 million in indirect costs. Thus, the efficacy of the MEMOM program is supported.