C.W Williams Healtj Center

The Palms Hospital is considering an expansion project that would utilize land previously purchased. By expanding into ambulatory surgical services, the hospital has the opportunity to increase revenues and capture market share in this area. Investigation in the NPV of the project and a scenario analysis reveal that the project would be profitable.

There are several reasons I recommend Trinity Community Hospital choose to lease space for the new orthopedic service line. Financially, this option results in the lease amount of cash outlay upfront. This would allow monies to be more effectively utilized for other expenses related to the new line. From a time stand-point, leasing would allow for the orthopedic service line to be opened much earlier than buying or constructing the space. Also, the current volatility of the market does not make this an optimal time to invest in real estate. Additionally, health care reform is still in it’s’ infancy and it is difficult to gauge the effect it will have on Trinity Community Hospital’s finances. The leasing option provides the hospital with the least amount of exposure and risk during this period of uncertainty.

This week’s case looks at the critical situation occurring at Riverview Regional Medical Center located in Etowah County, Alabama. The medical center, located near a strong competitor, is run by a veteran in the hospital management market, Mr Matt Hayes. Hayes is actively in the process of developing new ideas and revolutionary steps in an attempt to remain competitive in the market and regain profitability. The overall performance of Riverview Regional Medical Center appears to have decreased throughout multiple departments except outpatient surgical procedures, outpatient CT imagining, MRI imagining and inpatient MRI scans.

We should look into the services that this other nearby hospital is providing in their wellness center, and we should extend our services to the ones they are not offering. Our wellness center should also include a retail store to allow the patients to purchases the products that we use on them. I know this will require a specially trained staff, and we will make sure that the staff is qualified with all certifications needed.

The C.W. Williams health center known previously as the Metrolina health center was established by Dr. Charles Warren who was the first African American staff in the surgical department of North Carolina’s largest hospital alongside some other healthcare leaders. Its mission is primarily to adequately provide quality and accessible care to the people of Mecklenburg County ensuring efficient service, effective systems, and personal care with the help of supportive staff in conducive environments.

Pate Memorial Hospital is a 600-bed, independent, not-for-profit, self-supporting hospitals. PHC, an ambulatory health care facility, was opened by PMH. Sherri Worth, a new assistant administrator of Pate Memorial Hospital in charge of the PHC, was told that a firm plan establishes a clinic five blocks north of PHC. It is a big competitor for PHC. On the other hand, financial problems, Short service hours, long waiting time and lacking of gynecological services are all be the problem faced by Worth. Therefore, Sherri was requested to analyze the PHC’s performance and take Medcenter, a possible competitor, into consideration which either did or not opens a clinic in north.

RECOMMENDATION  There is “an inherent conflict between best care and financial performance”. The CEO states that “Finances are not, and never have been, our primary concern.” However, the business must address its decreasing profitability to be able to continue to survive. This will become even more urgent if the reduced government spending that the CEO foresees happens.  The organizational culture is high quality care, high-performance and non-profit which must be taken into account in any solution. The healthcare business has a clear focus and is very successful at continually improving its patient care and processes.  While clinical performance improvements have resulted in revenue losses for the Intermountain healthcare business the Intermountain health plan, SelectHealth, and other health plans that buy Intermountain health care services have benefitted. Intermountain needs to translate these benefits into additional profits to support its main business, healthcare.   Its skill at providing this care should translate into significant market advantage for SelectHealth and for Intermountain when selling

In order for the Downtown Health Clinic to maintain there financial strength in the hospital market I think there are a few alternatives which will give them a clear competitive advantage. • Adding a gynecological physician is must add alternative. With 70 percent of their client base being female and one half inquiring about gynecological services their contribution margin will increase thus exceeding last years revenues. Adding a physician, while it does increase variable cost, is another option that needs to be strongly taken into consideration. It will allow the DHC to stay boost from 9 to 12 hour days, allowing the DHC to add revenues by $129,720 just by simply providing grounds for an additional 65 employer physical exams per month. In addition it will also cut down on wait times, due to having 2 physicians with

Although limited in abundance, there are specific strengths of Blake Memorial Hospital, such as their new CEO, Bruce Reid, and the strong community base and need for healthcare services. On the other hand, weaknesses within the hospital and clinics, such as poor quality of care and facilities, and a low rate of funding, contribute to the declining performance of the healthcare organization as a whole. Outside of the organization are potential opportunities to cut costs by potentially closing clinics, and as a result, better the quality of care give to patients with increased funding. There are also opportunities to create an emphasis on the neighborhood clinics, for the poorer areas of the city, and potentially increase the referrals to the hospital. Threats outside of Blake Memorial Hospital include competing healthcare facilities such as St. Barnabas; being located in a poor, non affluent area; and threats to cut funding if the clinics are closed.

Scanning of internal and external environment are key part for decision making and planning for achieving of organizational objectives. Internal and external environment are called SWOT Analysis.

Environmental scanning involves an organization to look at any trend, opportunity or threat that could create issues for their company. Once any of these issues are identified, the organization should consider new strategies that react to these external factors. Issues should be examined that involve not only direct customers and suppliers, but also competitors, any changes in regulations and possible political involvement. External factors will be constantly changing so environmental scanning should occur frequently and regularly to ensure the current issues have been captured. Research and data analysis can help drive decisions regarding overall marketing changes that might be necessary.

Environmental scanning can be viewed as a way of acquiring information about outside events that can aid organizations in first identifying potential trends, then interpreting them

Friedman doesn 't think this expansion would be profitable. However, he has never done an analysis of the situation and has not thought about an appropriate tuition. He believes that the infant/instructor ratio in his center should be no higher than 5 infants to one instructor. The center would have no food costs for the infants. Compton will only agree to Friedman 's suggested changes if the center will continue to operate at or above the current profit level. Friedman does not start a new class unless more students are on the waiting list than are required per class. Obviously, enough students are on the 5-to-6 age group waiting list to start a new class. Lately, however, he has wondered if the center could make a profit by starting classes with fewer than the requisite number, taking the chance that new students would appear and could be added immediately. Information from his various inquiries implies that a potential market for quality infant care (0 to 24 months) exists. Friedman doesn 't think this expansion would be profitable. However, he has never done an analysis of the situation and has not thought about an appropriate tuition. He believes that the infant/instructor ratio in his center should be no higher than 5 infants to one instructor. The center would have no food costs for the infants. Compton will only agree to Friedman 's suggested changes if the center will continue to operate at or above the current profit level. Questions: 1. Look at each

Nicole Byrd is a former alumni of East Carolina University and is now a program manager associate at Blue Cross Blue Shield. She graduated with a Bachelor’s degree from the Health Service Management program and noted that she has a Project

2. Environmental monitoring. Examining the macro, industrial, competitive, and internal environments will produce the reasoning and ongoing analysis as to why this plan will support the senior leaders and new employees achieve their best performance.