unhealthy hospital case study

Blake Memorial Hospital in Marksville recently hired Bruce Reid as their new CEO. The hospital and its clinics are not generating enough income. The hospital’s costs is rising, the quality of care is declining and is not generating enough revenue to cover the expenses. Bruce Reid was given a $70 million budget to improve the financial health of Blake Memorial and improve the quality of healthcare services. He was allowed only less than a week to finalize the budget and present it to the board members.
The most difficult issue Mr. Reid had to address was the losses being incurred by the hospital’s six off-site clinics. If he decides to close the clinics then that would help with preventing the loss of incomes. However, the hospital had a responsibility to serve the uninsured patients in the community in those clinics. Closing the clinics would also anger the city Mayor who supported the hospital when it first decided to open them. The Mayor even threatened to have Blake Memorial’s tax records reviewed if the clinics are closed. In this situation Bruce Reid needs to utilize his strategic management skills to come with a solution to the daunting problem at hand. Bruce Reid needs to convince the board members that the clinics needs to stay open and serve the low income population in the community. At the same time he needs to come up with a plan to make the clinics more profitable for Blake Memorial. The best strategic plan is to present a plan that is long range and focuses in the budget for the next few years. Currently the offsite clinics are losing money and they are also the cause of the funds being diverted away from the hospital’s in-house services. Te best option for Mr. Reid is to start with making a plan for the short term problems such as the problems with the clinics. He should invest some of the money from the budget and upgrade the clinics. By upgrading the clinics the members of the community will feel more confident to acquire service