Critical Thinking Case Study: Let It Pour

1690 words - 7 pages

The case study Let it Pour - My First Assignment as Executive Assistant, provides us with a look at the problems of Faith Community Hospital. The CEO of the hospital has indicated that these problems may threaten the very existence of the hospital if they are not identified, evaluated, assessed, and resolved in the near future. The problems that surround the hospital are by no means isolated to Faith Community Hospital, but are a reflection of the problems that the healthcare industry as a whole is experiencing. Some of these problems include, a loss of power to insurance companies, government agencies, and even caregivers; rising operational costs; reduced revenue due to a reduction in the patient population; and vastly different levels of healthcare being provided by hospital staff due to differing religious and moral interpretations of the hospital mission statement. The hospital is very aware that failure to address and resolve these problems could result in consequences that would affect not only the hospital, but also the community as a whole. The purpose of this case study is to identify the problems faced by the hospital; recommend solutions derived using logical and systematic methods of evaluation; discuss the rationale behind each of the chosen solutions; and propose an implementation plan of the recommended solutions.Presently, there is a broad assortment of problems that are plaguing the hospital's capability to administrate and operate in an efficient manner. These inefficiencies are affecting the bottom line of the hospital. After studying the issues faced by the hospital, I have been able to identify two issues that are having the biggest impact on the organizational processes of the hospital. According to Kiesow (1994), problem solving is a cyclical process composed of four steps. I will address each of the problems individually by first identifying and defining the problem, generate and frame a list of alternative solutions, evaluate and choose the optimal solution(s) from the list, and propose a plan to implement the solution(s).The first problem is the significant rise in operational costs that is being experienced by the hospital. The hospital has experienced a 10.6% increase in per patient per day costs. An evaluation by the hospital's financial analyst has indicated that the rise in operational costs can be attributed to a significant decrease in the hospital's patient population, thereby reducing the revenue realized by the hospital. Combine this with the fact that a large part of the hospital's operational costs is fixed, and you have a situation of decreasing revenues, unchanging operational costs, and ultimately decreasing profitability. Although the hospital is technically a 'not-for-profit' organization, the hospital must, at minimum, reach a break-even point to continue to operate.There are numerous alternative solutions that could be implemented reduce the operational costs of the hospital. However, the solutions...

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