Case Study Of a Hospital Costs

Seymour Politz, Chairman of the Finance Committee at Glen River infirmary, has been charged with prepare for a much needed hospital expansion. There nuclear number 18 several excerptions on the table, and Politz presented his thoughts to Dr. Bernauer, Hospital Administrator. The starting option is to just add at least 30 additional beds by raising money with a fundraising campaign. The second option is to reorganize, using the existing clinical beds for major illnesses completely and expanding by adding barely simpler, less(prenominal) high-priced, rooms. This option would peel to get determines buy-in because they could feel their behave and their less critical patients wouldnt be valued as in the past. Also, this less expensive option could be paid for by loans from banks. Politz provided these options, suggesting the latter was the take up way to proceed (Drucker, 2009). Dr. Bernauer tell that, It wont work even though it strikes signified (Drucker, 2009, p. 76). He suggested that without physician buy-in the platform wouldnt work. He excessively shared the Board would non support an idea that secures funding through banks, because they believed that donors would non place once this happened. Dr.

Bernauer suggested that selling Glen River to a for-profit hospital focus follow or make it a profit making hospital owned by the doctors would fix the problem (Drucker, 2009). Dr. Bernauers comments contained any(prenominal) truth, but they were slightly short sighted. Robbins and Judge (2011) emphasize the importance of group understanding and buy -in for organizational decisions. In this wa! y, Dr. Bernauer is accurate. However, he has non looked at the various ways that this consensus could be sought. To assume that doctors could only understand the rationale behind business decisions if they could potentially returns is an wild assumption. Dr. Bernauer himself even says that the profits theyd make as owners of Glen River Hospital are so trivial as to make no difference to any of them (Drucker,...If you want to get a panoptic essay, order it on our website: OrderCustomPaper.com

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