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Topics: Profit, Health care, Community Pages: 6 (1717 words) Published: January 30, 2015
Case Analysis of Naivete or Boldness

This is a case about Denise Foley, who used to be a Chief of Nursing in a hospital and now is the Senior Vice President and Chief Operating Officer. The argument that she depicts is about her career and the prospects of the hospital. She has an overall view of the situation and a rational analysis of every aspect of the hospital faced. Stakeholders

The major stakeholders in this case are Denise Foley, the new Chief Operating Officer, the consultant, the hospital’s CFO, and the customers of the hospital. Denise Foley, the Senior Vice President, makes important decisions related to the future of the hospital. She considers that she has to give conscientious and carful advice to her CEO. Firstly because the hospital had given her a chance to complete her MBA and Foley wants to give it back. Secondly for personal reasons, the wrong decision would lead to her career crisis, which will place an economic burden on her family. As a MBA graduate, Foley analyzes the merits and shortcomings of selling the hospital to a for-profit institution. Although this could relieve the hospital’s financial difficulties in a short period, the fate of the hospital is not optimistic and the customers in the community will face medical treatment problems, such as people in the community cannot find a place to have mental health examination. However, as the COO, Foley is responsible for making the CEO’s strategy work. The dilemmas make her struggling in her inner heart. The new CEO’s career is also at stake. It is known that the previous CEO had been fired from the hospital. Though the reasons for the layoff were not clear, the financial difficulties of the hospital could have been a cause. He wants to save his job and is under pressure to solve the hospital’s financial problems. However, he is helpless and has no one to turn to. He agrees with the consultant’s advice after hearing that many non-profit hospitals go through this kind of difficulties in the same way, but, the consultant’s decision is not overall to the whole incident about the hospital’s fate. For the consultant, his or her work is only to offer advice that gains profit for the hospital. The consultant has no responsibility for the eventual fate to the hospital. The only idea that he or she has proposed is to sell the hospital to a for-profit institution could help the hospital gain profit in current situation. He or she has no worries unlike Foley and the CEO or the community and customers. For the hospital’s CFO, his position is a little bit passive. As a chief to manage the financial issues, the financial problems were definitely blamed on him by many people including the new CEO. Due to a lack of confidence in him by the CEO, no one asks his advice. But if the CEO sells the hospital to a for-profit institution, he has to risk having the professional crisis or even worse losing his job. For the customers of the hospital, the sale will be a serious problem. On the one hand, after selling the hospital to the for-profit institution, the community will have only one local hospital medical service provider so the service fee will be higher, the service quality will be lower as a result of losing competition. On the other hand, if Foley was right that the service array would be cut, customers who need mental healthcare would be in trouble. Reasons and Rationalizations

As has been noted, the most vulnerable parts of both Foley and the CEO are the concerns of their own future career and the development of the hospital. The CEO is the decision-maker and Foley is the decision supporter. If they make the wrong decision, the direct consequence will be that they lose their jobs and the severe consequence will be the bad effects to the whole community that people will not have a good medical service at a property price and a suitable department. The consultant, a critical person in this incident who makes the CEO hesitated, painted a hopeless...
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