Student Name: Christopher Hamlett
Course Title: HS541
Topic: You Decide
Name of Instructor: Prof. Cutspec
Date: February 2, 2012
Table of Contents
Strategies and recommendations3
Middlefield Hospital is a 450 bed tertiary care facility in a major urban area in the Northeast. Presently, the hospital is not meeting its budget which places dark clouds over its future. The new facility seems to be Middlefield’s biggest competitor and is the main ...view middle of the document...
This is adding significantly to the hospital's operational costs.
6. The inpatient mental health services and neo-natal intensive care unit continue to lose money for the hospital (Week 6 Assignments: You Decide ES).
The given information will be able to assist me the CEO in developing a plan which will help assist Middlefield hospital to become the successor that it was aimed to become.
Middlefield hospital was once a very successful organization which served its patients, employees and other associates with absolute care. Over the past period Middlefield has been under heavy burden bestowed by its biggest rival – another successful hospital. With this new hospital on the market, Middlefield is being forced to absorb its losses and loose many of its most prominent and dedicated employees. This project is aim is to implement strategies and recommendations to improve the financial performance of the hospital and to let it become the once successful hospital that it once was.
The CEO of Middlefield hospital thoroughly researched the decline in services that the hospital sustained and was able to identify the reasons for the losses and vast increase in employee turnover rate and humiliating decline in patient population. She is ready to embark on ways to make Middlefield hospital the once successful and profitable hospital that it has claimed to be in the past.
Strategies and recommendations
The best way to improve financial performance at the hospital is to be more competitive by knowing more about the competitor, the programs and incentives that makes it a success and its aim and goals. There are a number of strategies and recommendations that can be fostered to improve the financial performance of the hospital, some of which include: It is known that Middlefield is the only hospital with a psychiatric inpatient clinic in the community. The hospital can use this opportunity to create finance by charging a small fee of approximately $5.00 to patients who use this service. Secondly, the large uninsured patients visiting the hospital have been reducing the overall reimbursement and net income for the hospital. The CEO should see to it that the hospital remains competitive by charging uninsured patients an affordable rate in order to give them a service. The hospital should charge patients visiting the Accident and Emergency department a small consultant fee – most patients come to the hospital via Accident and Emergency departments where there are subsequently referred to the wards for admission. Doing that will place Middlefield at an advantages because patients without insurance will still be able to visit but will be contributing a small amount towards the survival of the hospital. Thirdly, Middlefield hospital needs to charge patients for prescriptions at a very low rate so that they will be able to afford it. Fourthly, in order to attract patients and the workforce to such a unique institution,...