Launched in 1945 is a 30-bed, autonomous and non-profit medical facility situated in northern California the Edgewood Lake Hospital (ELH). ELH has been capacitive of both hospitalizing patients as well as giving treatment to patients without admitting them to the hospital (Rakich, Longest & Darr, 2010). The treatment services have commonly been to the supportive community habituating the woody and lakeside town the hospital is located in.
Despite the hospital being renowned for giving high standard medical services and being held in high regard by neighboring societies, the facility has continuously incurred financial shortfalls amid 2006 through 2009 (Health Management Book, 2010). The deficits are associated with internal and external issues impacting the hospital per se. One of the initial causes of losses has been the unfortunate administration by the recently dismissed CEO, Richard Fuchs, with his leadership having contributed to the largest losses. Other factors that have been leading to shortfalls in the hospital include financial plan incongruity, financial misappropriation and not pinpointing these factors timely to correct them.
The poor administration of the facility has resulted in reduced work morale of the present staff while making it challenging to hire new employees for the vacant positions. The hospital has also been faced with stiff competition from the close by facilities that are income generating with better equipment. Further, the regulation from Medicare requiring hospitals to acquire new computer systems is also adding the financial pressure facing the hospital. To get the facility profitable within two years, a new CEO has been employed by the directors of the hospital.
In outline, there are various aspects that need to be evaluated to regain the earlier status of the hospital in terms of competitiveness and its financial stability (Hill & Jones, 2012). These factors comprise the examination of the hospital’s internal and external surrounding to identify the features that will add to the advancement of the facility. Additionally, coming up with different strategies will aid in the improvement of the hospital.
Health Management Book. (2010, September). Retrieved February 2016, 10, from USC price: Sol Price School of Public Policy: http://priceschool.usc.edu/newsletter/september-2010/health-book/
Hill, C. W. L. & Jones, G. R. (2012). Strategic management: An integrated approach. Stamford, CT: Cengage Learning.
Rakich, J. S., Longest, B. B., & Darr, K. (2010). Cases in health services management. Baltimore: Health Professions Press.