Question

CASE STUDY: Financial Management

You are the CFO of Amityville Hospital. It is a 250-bed, for-profit hospital renowned for its cardiology unit. The hospital has 300 employees, including 125 physicians with staff privileges.

Amityville is located in a thriving community that represents its primary service region. There are many high-tech companies and industries in the area that attract families and retirees from around the United States. The area has a mild climate and offers an excellent educational environment that includes multiple community colleges and universities.

There are approximately 750,000 residents in the surrounding city, and its population is growing about 4% per year. Approximately 46% of the population is under 18 years of age, 42% is between the ages of 18 and 64 years, 12% is over 65 years of age; 49% of the residents are female and 51% are male.

Amityville has one competitor, Serenity Hospital, which is located 40 miles away. Serenity is a 350-bed not-for-profit hospital with an excellent reputation. It has strong orthopedic and cardiac services and also offers oncology services, which are poorly organized and not accredited. Serenity Hospital’s financial performance is stable, and its market share is growing.

Serenity has no formal orthopedic or cardiology departments, though several popular orthopedic surgeons and cardiologists maintain privileges there. The community’s premier orthopedic group practices are located near Serenity Hospital, making it inconvenient for surgeons to use Amityville Hospital for surgery except in rare cases. However, a few orthopedic practices are planning to open branch offices near the Amityville facility.

Cardiologists on Serenity’s staff restrict their activity to performing consults for Amityville physicians whose patients have been admitted to the facility. Although Amityville Hospital has had moderate success in the burgeoning community, its leaders would like to ensure adequate preparation for the future, especially in the environment of health reform. You will assess key areas in Amityville’s operations from a financial perspective and report your results to the board of directors in a PowerPoint presentation. Please address the following questions in your presentation.

Case Study Discussion Questions

1. What areas of Amityville’s operations will be critical to review?

2. How will Amityville’s financial data be used in the strategic planning and decision-making process?

3. How will healthcare initiatives impact Amityville and its strategic planning?

4. How do the community and Serenity Hospital impact Amityville’s strategic planning?

Answer 1

Areas of Amityville's tasks and operations is that will be basic to audit incorporate administrations rendered and the motivation behind why the office has simply "moderate" achievement in the network. The sort of administrations rendered will be basic for the survey so they may investigate with contenders and what to do to improve.

. Amityville's financial data-related information like the number of representatives, number of beds and the expense per bed every day will be utilized in vital arranging and the basic leadership process by dissecting the expense of administrations being rendered and if those administrations are returning benefits for the emergency clinic. Such information will help choose which administrations ought to be expelled and included if fundamental. Utilizing money related information will enable the Board to settle on savvy choices for the office as far as income and costs. Such information ought to be utilized to decide approaches to cut costs and increment incomes.

The vital arranging of Amityville ought to consider the challenge around with deference the topographical, demographical, sociological and social variables and their effect on the association benefit and activity.

We will currently investigate the Board of the Temple University Health System and its connection with the four measurements. The association meets the hierarchical exhibition measurement as its strategy to give access to the "highest caliber of care" in both the network and scholarly settings". The association likewise meets the official execution measurement as John Kastanis, the present President and CEO, has had the option to add to the association's prosperity through putting resources into medicinal innovation, guaranteeing top-quality consideration, and enrolling first rate doctors. As far as the nature of care, the association offers different administrations and is "devoted to giving access to quality patient consideration and supporting greatness in restorative training and research". The framework gives their patients access to cutting edge treatments and causes them to accomplish wanted social insurance results; the inside is likewise the main impetus for clinical consideration, research, and restorative instruction. As far as money related execution, the main data accessible is that the framework is a billion scholastic frameworks however as indicated by Modern Healthcare, "The across the country declining inpatient confirmations pattern has pummeled the Temple framework in the course of recent years, leaving it on the unstable budgetary ground" . It was likewise uncovered that TUHS keeps on losing cash in tasks, which gets from the consequence of lower-than-anticipated volumes and huge quantities of Medicare and Medicaid patients.