Critical Thinking Case Study Faith Community Hospital

1727 words - 7 pages

Introduction and Problem StatementFaith Community Hospital is a not-for-profit, community focused institution. It is not living up to its Mission Statement and its costs are growing more quickly that its revenue. Moreover, the CEO, by his own admission, is "not sure of ...[his]...role any more" (University of Phoenix course material, p.3).With an absence of leadership, it is no surprise that the hospital appears to be in chaos. Many of what the CEO thinks are problems are symptoms of the bigger problem. The replacement of the CEO is not an option for his Executive Assistant, so the problem identified is that the Administration of Faith Community Hospital has lost control of the day-to-day ethical, economic, and legal decision-making processes in their organization.Root CausesToday's hospitals are a much more complicated environment than they were a generation ago (Povar et al., 2004). Faith Community Hospital probably established its mission statement in a time when people's views in our society were much more homogenous than today. Since then, the ethical landscape has become much more hazardous and people's views more divergent. Unfortunately, the hospital has done little to insure that the once common understanding of the mission statement's intent remained consistent through time. As a result, people in the hospital are interpreting the mission statement according to their personal ethical standards and not according to the understanding of the Board of Directors.Also missing is any direction, policy, or expressed strategy regarding uninsured patients. The CEO decries the free treatment of patients by some of his staff, but then expresses his concern over the practice of not treating patients without first confirming insurance coverage. If the CEO is not clear-minded on the issue, the hospital cannot expect the staff to decide when and when not to be providing pro bono work (University of Phoenix course material, p.2).In his discussion of the hospital's financial situation, the CEO does not divulge any details as to which costs are increasing except the hospital's malpractice insurance. If the underwriter knows of the hospital's lack of common direction with regard to treatment, they no doubt consider the hospital an increasing risk and it will increase their premiums appropriately.It is difficult to know what the root cause of the declining patient population is. It does appear, though, to be contrary to the experiences of other U.S. health organizations, where patient demand for health professionals has lead the Association of American Medical Colleges to call for a 15% increase in medical school enrollment (2005). Perhaps the community has lost its trust of the hospital because of the issues above. Maybe the population or demographics of the surrounding area have changed. Perhaps a newer, more modern hospital in the area is drawing patients away. Regardless, the hospital needs to address the issue of declining revenue due to declining...

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