Tools and Techniques

Let It Pour: A Case Study Analysis

MGT/350

Abstract

The issues faced in the case of Faith Community Hospital are not at all unlike the issues faced by many of today's hospitals. Although health care costs in general have steadily increased, since 2002, the amount of the increases has declined from 15.2% in 2002, to 9.2% in 2005. Chris Smith has been tasked with an important first assignment. Her ability to provide feasible synthesis and problem solution will determine the fate of her new position and will seal or destroy trust by her new boss.

Let It Pour: A Case Study Analysis

"While is it encouraging to see cost increases stabilizing, the rate of growth remains unsustainable and the magnitude of health care costs continues to be a major concern for employers' bottom lines an employees' wallets" (IOMA, 2005). There are many contributing factors to the rising cost of health care coverage and the costs associated with providing health care. From the reduction in reimbursements due to insurance company mergers, to the decrease in HMO enrollments "the numbers are evidence of fewer and fewer individuals being covered by employer-sponsored health plans today" (Fine, 2005). Experts believe that "eventually the industry is headed toward consolidation into one national insurance company" (Fine, 2005). Unaffordable health care costs will sharply increase the number of uninsured Americans, making the problems faced by many of today's hospitals more dire than ever before.

Faith Community Hospital is being faced with changes as a result of rising costs and a decrease in patients. Wishing for more sick people would be a selfish and fruitless request, so the hospital is left to wish for better alternatives for caring for their patients while ensuring that the hospital is operating as efficiently and effectively as possible. An unhappy Board of Directors, apprehensive staff, and a patient base that is made up of some that do not have the means to pay for medical coverage, makes for a dismal backdrop to an already dim situational outlook. The hospital is faced with making some tough decisions to either cut patient services or increase its fees.

Chris Smith has been tasked with a huge undertaking - and not just in her new job as Executive Assistant to the CEO. Her new boss has tasked her with summarizing problems that would truly require even a seasoned analyst more than 7 days to properly address. Pat, the CEO, has also attempted to give Chris the full scope of the problems at Faith, but has included some personal perspectives in an attempt to direct Chris on the proper path of resolution. The problems facing Faith are expansive and need immediate resolution if the hospital is to be able to operate at peak performance.

Key Problems

The major issues facing Faith Community Hospital are as follows: A one-year jump in cost per patient per year from $217 to $240 has forced a reevaluation of all offered costs and services. The Board of Directors is concerned with the status of Faith. Because of the varied and diverse background of the Board, it will be necessary to solve problems that address a broader appeal and consider the religious heritage and commitment of the hospital. As medical errors are abound in the media, prompting questions and apprehension has increased among staff and patients respectively. Addressing these concerns should be of key importance to the hospital while working to quell the concerns of all stakeholders. While many consider religion and morality to be a personal dynamic when it comes to health care it is a very public topic. Recently, the religious and moral convictions and restrictions of staff and patients have had a real affect on patient care at Faith and in America. An initiative addressing this issue would be in the best interest of Faith. There have been several instances where DNR's have been misapplied. This is an area of critical importance to the community perception of Faith. As well, if this area remains unaddressed, the hospital will be open for an onslaught of legal implications. The increase of insurance company's power has resulted in a considerable loss in caregivers power to treat patients and make medical decisions. Since the hospital cannot, of course, eliminate the insurance companies, it must identify a course of action to ensure the best treatment and medical decisions are made despite these demands. Since fruitless exams for the terminally are being ordered this means that the concerns for cost reduction have not been properly communicated to the entire staff. The staff; however, does appear concerned with the plight of the hospitals patients as pharmacists are filling prescriptions in installment plans and counselors are treating some patients pro-bono. Both of these are unauthorized by hospital administration. Workable solutions for all concerned must be enacted. Finally, a problem that has the potential for catastrophic consequences to the good name of Faith; some doctors are refusing service until insurance coverage is confirmed. Not only is this officially an unathorized hospital practice, if someone were to die as a result of this action the hospital could face potential legal action.

Analysis and Evaluation

As is evident, there are varying degrees of problems that need to be addressed within the organization, its staff, and its policies and procedures. Per patient per day care costs have increased as is shown in the one year jump in cost per patient per year from $217 to $240. "Runaway health care costs threaten the economic well-being of the United States" (Regenstrelf, 2005). This increase in patient care costs is a direct result of the rising cost crisis that has gripped the American health care system. If these costs continue to rise, it will indeed threaten the level of care that Faith is able to provide. A probable expectation of The Board of Directors is that costs will remain low and care will remain high. The deficiencies that the facility is experiencing are jeopardizing both of these.

Medical errors in the news are prompting questions and apprehension among patients and caregivers. At the forefront of today's media are stories about medical mistakes and subsequent class-action lawsuits. This press coverage is making the administration nervous and prompts patients to be more scrutinous without warrant. The potential for the hospital to expend far more time with each patient to quell his or her fears about procedures and answer