Carson Manor

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1.) Identification of Problem:
Key Issues/Problems:
Carson Manor is a nursing home that houses the elderly and provides them with nursing care. This case of Carson Manor the nursing home is fraught with cost inefficiencies. There are more issues with the system of classifying patients and the levels of nursing care given to each of those patients. Potential Problems include:

* Budget is massively inefficient in keeping and taking care of the elderly within the nursing home. * Nurses will not be able to provide good quality care for their patients. * Patients of a certain status will receive unequal care. * Whether or not to outsource or to improve present system. * Deciding on the criteria to evaluate nursing care firms. * Methodology of implementing change to existing firm or outsourcing to a new firm is not the same across the board, causing the implementation of each alternative to be full of its own individual problems. * Evaluating the cost savings (Cost savings not in equivalent terms). Subsidiary Issues:

* Convoluted hierarchy for approval of projects.
* Create committees or requiring liaison from city administration for outsourcing the project. 2.) Situational Analysis:
Relevant Factors:
* The ability to identify in depth problems areas at the Carson Manor for which change strategies could be developed by the city. * Assessment of resident care requirements.
* Review of administration, staffing, and organizational design. * Develop comprehensive recommendations for introducing improved operating and cost efficiencies for the future operation Quantitative Analysis:

* Cost on necessary services
* Cost on keeping Carson Manor
* Cost on outsourcing
* Service quality of Carson Manor
* Service quality of outsourcing
* Management strategy of Carson Manor
* Management strategy of outsourcing operations
* The future development of changing the inner part manager Qualitative Analysis:
* The level of care received by patients.
* Relationship between firm and the sponsor (the city of Winston). * Hired nurses and staff relationship with patients.
3.) Evaluation of Feasible Alternative Solutions:
Alternative 1: Outsource Carson Manor to Patientcare

Advantages:
* Is familiar with running of nursing homes.
* More experience on management.
* Lowest bid of the proposal.
* Fully estimated the sum of all proposed operating deficiencies. * Provide assistance with implementation.
* Take different steps to analyze Carson Manor.
* Analyze the staff and cost.
* Capable of operating the nursing home efficiently.

Disadvantages:
* The cost would be at least $700,000 if implemented.
* Cost is hard to manage.
* Lack of competitive background of experience.
* The quality of the service is cannot contend with other two operators. * The method they provide overly simple.
* Patientcare does not seem professional in way they operate their business. * Patientcare does not specialize in any particular medical care. * References appear to be unreliable.

Alternative 2: Outsource Carson Manor care to Clarke-Hamilton

Advantages:
* Benefit to cost ratio ranges from 3 to 1 all the way to 30 to 1. * Has experience in creating systems designed for medical care. * Has implemented standardized patient classification systems. * Uses MIS systems.

* Lower price than continuing with the ineffectual Standardcare. * Has consulted in a management capacity.
* Have extensive and reliable references.
* Webster Regional Center states that though the full method that Clarke-Hamilton proposed they still surpassed their estimated savings. * Administrator from Regional Municipality of Gast City Greenfield Home for the Aged had glowing reviews about Clarke-Hamilton and their level of professionalism.

Disadvantages:
* Choosing Clarke-Hamilton will lose the need for...
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