GUIDE TO WRITE THE CASE STUDY 12 PAGES , NEED TO ADD REFERENCES OR RECOMMENDED READING Step I - Executive Summary of the Case Provide a brief (100 word maximum) summary of the case. What is the case...

Executive Summary
Due to Stagnating Revenues and rising costs, Poor Health in terms of financial crisis of
Blake Memorial Hospital can be seen. In a hospital major issues arise because of poor quality
that a hospital delivers while caring its patients which is observed very poor in the Blake
Memorial Hospital. Financial loss of $250000 was faced by its clinics in a year. When reviews
were done by the new CEO on the budget of 1992 the output came as he would have to reduce
expenses on some services or completely remove those services in order to raise fund for other
important ones. And out of which clinic program was one which was identified as a cost cutting
service. Bruce Reid could not deviated his concern from those six offsite clinics, as they were set
up six years before to provide health care to the community’s poor who cannot afford such
services. To handle such services it was required to get fund from the revenue generated services
ut it is impacting quality of health care services because many of the services were
underfunded.
Also the Hospital had to deal with political issues as Clara Bryant who was then
appointed as a Commissioner of Health services and she was constantly forcing to remain the
services of those six offsite clinics as they were essential for the community. And also it would
jeopardize the city funds if these clinics are closed.
Chief of Surgery, Dr. Winston Lee was against the decision and he wanted the operations
of these clinics to be closed but he had proposed an idea in favor of those poor patients that they
could be
ought to the hospital weekly in shuttle buses provided by the hospital itself. Even Dr.
Russell was equally supportive to this statement that new alternative methods should be adapted
in order to help the community but clinics need to be closed to improvise the financial situation
Because A hospital is not just a building rather it is a service and wherever the service is required
Hospital is there.
Major issues in the case
The Hospital is facing loses because of less revenue generation as compare to the cost of
services in a year, which is consequently reducing the quality of Health care services because the
hospital is not able to attract high quality Practitioners and advanced technology instruments .
If it is seen in a general way then six offsite clinics to serve the community is a good idea
to leverage the image of the Blake Memorial Hospital but the poor condition (leakage, peeling of
paints, etc.) is doing totally opposite of it. Rather improving
and image of the hospital the poor
service and distorted infrastructure were damaging the
and image.
The Hospital’s insufficient ability to attract High paid patients and top grade practitioners
would eventually deteriorate the condition and more investments are not possible as per the
designed budget. High numbers of Medicaid patients are not even enough to provide good
evenue to cover all the costs.
Commissioner of Health care services, Clara Bryant, was continuously pressuring the
hospital to not to close the six offsite clinics otherwise bad impacts in terms of city funds would
e faced by the hospital, as the city funds access would be difficult for the hospital after the
closing of these community servers. And a constant perusal from the chief Surgeon regarding the
termination of offsite clinics has created a dilemma.
Location of the competitor’s Hospital in Marksville, which has both high technologies
and improvised services as compare to the Blake. Besides it was located on the west where better
and affluent patients were coming to the St Barnabas because of these facilities and it had no
other competitors to share its business except Blake which was suffering from crisis. Also St
Barnabas was known for its shrewdness in business ventures, But when Bruce Reid asked for the
same joint venture with the Blake then St Barnabas CEO indirectly refused for this offer and said
In Business competition helps to survive.
In order to improve the cu
ent situation either it was required to cut costs or bo
ow
money but the latter one was not possible because of the already burden of existing debts. SO the
only way left was to cut costs, which was again not an easy option as it was discussed above,
there were many pressures form all the sides.
Clinics in any case were not contributing in generation of profits, and moreover the
annual loses with respect to them were climbing very high. Reasons were the rising costs and
udget deficit of the region.
Magnitude and Significance of the Problems
Bruce Reid had to first weigh the consequences of political constraints on closing the
clinics because that was their only step to reduce the loses by eliminating the operating costs of
those clinics...