Let It Pour Case Study

Let it Pour Case Study

The Faith Community Hospital has the same problems that many companies and especially hospitals have. How can the hospital make enough money to be able to continue to provide the best care to their patients? There are several problems that the hospital is dealing with right now. The first and foremost is money. The hospital has fixed costs with a variable income. Without increased income the hospital will not make enough money to pay their bills. In order for the hospital to make enough money to pay the bills they need patients. The patients are the ones who pay money for services. Without the patients the hospital can not make money. The hospital needs to get more people through the doors to make the money they need to stay in business. Lastly, there seems to be some problems with patient care within the hospital. When the nurses and doctors either fails to provide care or does not provide enough care this is a problem. These are the issues that need to be address if this hospital wants to stay in the business of helping people.

First and foremost is how to reduce costs. Even though 28% of the costs are fixed there are other areas that the hospital can look at to reduce costs. The hospital should look at their staffing models. Ensuring that all areas of the hospital are proper staffed can cut down on the overtime which could cut costs. Also, if a department is overstaffed the hospital should try and move some assets around so that the hospital does not have to let anyone go. However, if there is no way to move any assets from one department to another and the department in question is overstaffed then firing of excess personal will help to reduce cost. Another place to help lower the costs would be with the paperwork of the hospital. Ensure that paperwork is stream lined within the hospital, so that the hospital is not spending a whole lot of time and money creating, looking for, or destroying paperwork. Use all the paperwork and forms to their fullest extent and get rid of old and outdated forms. The hospital should look at moving a lot of the paper work from paper to computer. By putting documents into a computer database, it will reduce the amount of paper used, time to find the paperwork, and storage of the paper work. The initial outlay of cash could be expensive, but the long term cost saving could save the hospital a lot of money.

The second thing the hospital needs to do is to increase revenue. Since medical costs are as high as it is, we should try and stay away from increasing the cost of medical care. Another solution would be to increase the amount of patients that comes though the door of the hospital. One way to increase the patients we see coming though our doors would be to advertise the hospital. By putting the hospitals name into print, radio or TV it would generate interest in the hospital and even let others know that the hospital is here. Again with starting an ad campaign it will cost some money in the initial outlay, but if we can generate interest in the hospital that will mean more people will come to us for care which will increase the cash flow in the hospital.

The hospital tries to provide the best care that it can. The doctors and nurses only want what is best for their patients. However, it sounds as if some doctors are either refusing to provide the proper care, but sometimes going overboard on the care they provide. The hospital needs to start a training program on what is expected of the doctors and nurses. By starting training all of the doctors and nurses will be reminded of when to provide care and when not to. The training should also remind those who deal with patients on the consequences if they are found to be doing something wrong. Doctors who do not follow "do not resuscitate" orders or who refuse to provide care are opening the hospital up to lawsuits. Each lawsuit that the hospital has to deal with increases the operating cost of this hospital greatly. The doctors and nurses that do not follow the rules after going though the training will face disciplinary action