Apply critical problem solving skills through evidence-based and informed practices in organizational outcomes.
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Scenario
You are the CFO of a rural hospital. During a recent review of the organization’s financial status, the hospital was deemed “at risk” for closure. Several factors contribute to the at-risk designation, including the state’s decision to opt-out of the Medicaid expansion program, the aging population which requires more expensive care, and the changes in reimbursement from Medicare. These challenges have resulted in rural facility closures across the country. As part of the strategic management team, you are charged with reviewing various facility units and making recommendations that may avoid closure. You determine that based on the profitability reports, the OB/GYN unit of the facility is underperforming in several key financial areas.
Instructions
In a written proposal to the hospital CEO, Administrator, and CMO, discuss the following:
Identify potential challenges related to the OB/GYN unit’s performance.
Explain potential trends in the community impacting health consumer utilization patterns.
Explain the potential benefits of reorganization within the unit and how reorganization could improve its financial status.
Recommend a course of action and the implications that those actions will have for patients, providers, and investors (i.e., how might closure affect the community or how might new service offerings, such as midwife services, improve profitability).
Proposal to the CEO, Administrator, and CMO of Rural Hospital
Reorganization of the OB/GYN Unit
Introduction
The OB/GYN unit of our hospital is underperforming in several key financial areas. This is due to a number of factors, including the state’s decision to opt-out of the Medicaid expansion program, the aging population which requires more expensive care, and the changes in reimbursement from Medicare.
In order to improve the financial performance of the OB/GYN unit, I recommend a reorganization of the unit. This reorganization would involve a number of changes, including:
Potential Challenges Related to the OB/GYN Unit’s Performance
There are a number of potential challenges related to the OB/GYN unit’s performance, including:
Potential Trends in the Community Impacting Health Consumer Utilization Patterns
There are a number of potential trends in the community that could impact health consumer utilization patterns for OB/GYN services, including:
Potential Benefits of Reorganization Within the Unit and How Reorganization Could Improve Its Financial Status
Reorganization of the OB/GYN unit could provide a number of benefits, including:
Course of Action and Implications for Patients, Providers, and Investors
I recommend the following course of action for reorganizing the OB/GYN unit:
The implications of these actions for patients, providers, and investors are as follows:
Conclusion
Reorganization of the OB/GYN unit is a necessary step in order to improve its financial performance and ensure its long-term survival. The potential benefits of reorganization outweigh the potential challenges. I recommend that the hospital move forward with the reorganization plan as soon as possible.