Archive for June, 2011

Faith Community Hospital case study

Faith Community Hospital case study

Like all businesses, hospitals must operate within the confines of economic factors in order to remain competitive and functional. Hospitals have the same operating costs and other guidelines as other businesses such as payroll, utilities and inventory. The none-profit hospital, Faith Community Hospital (FCH) is no exception and it must follow these guidelines if it is to stay operational. However FCH is currently not operating as a business and is suffering for it as a result.

FCH has several problems with which to contend, before it can begin to function as a business and make a profit in order to keep its doors open to the public. The hospital’s foremost concern is its mission statement, which states. With the foundation and commitment of our spiritual heritage and values, our mission is to promote the health and well-being of the people in the communities we serve through a comprehensive continuum of services provided in collaboration with the partners who share the same vision and values. This mission statement is extremely generalized and everyone from those individuals on the board of directors down to the counselors who deal with patients has their own interpretation of this statement. This lack of conformity concerning FCH’s vision of itself is degrading its performance. Secondly the hospital admitted seven percent fewer patients then in the preceding year, while still maintaining virtually the same operating costs as the year before. As in any other business, FCH can not hope to remain functional without reducing it operating costs to coupe with the lower number of patients admitted to the hospital. Finally, FCH has an inadequate communication structure. Staff meetings are held too infrequently or not at all, which hampers hospital operations. This reduced communication leads to duplication of work and prevents management from informing the employees of the hospital’s goals and objectives. In order for FCH to maintain its functionality it must set some objectives and goals. The hospital needs to revamp its mission statement to include clear and concise language that is less open to interpretation by those who read it. Much like the standardization of equipment in an organization, creating this singular view of the mission statement will increase productivity throughout the hospital. The hospital’s second objective should be a two part process, it must increase its patient load while at the same time lowering it overall operational costs. Finally the hospital needs to improve the communication that occurs within the hospital between management and the staff. The overall goal of the hospital should be to increase performance, decrease expenses yet maintain its high moral and ethical standards for which FCH is known. Should FCH fail to complete these objectives or strive to meet it goals, the effects of the hospital’s problems will continue occur. These effects have included the service or lack there of provided by doctors due to their interpretation of the hospitals mission statement, which has also lead to legal action from outside parties. Hospital staff is also offering free care to patients from time to time. Though this action is morally just, the hospital is being hurt financially as a result of this activity. Miscommunication also results in the duplication of costly tests for patients that do not necessarily require them. This unnecessary testing also contributes to the financial burden of the hospital. Several solutions to FCH’s problems and their effects are available to them. Read more…