Faith Community Hospital

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Faith Community Hospital a Case Study

This case study involves Faith Community hospital, which has several challenges. After meeting with the Chief Executive Officer (CEO) Pat, several financial and personnel issues are troubling the hospital. This report will identify the issues then offer possible solutions and their ramifications. The solutions will be narrowed down into a plan of resolution to remedy the issues.

This institution has a stated mission to promote the health and well being of the people in the community they serve through a comprehensive continuum of services (case study). In order to achieve their mission the hospital must be sound financially and have adequately trained staff personal.

Currently Faith Community hospital is facing a financial crisis. The cost per patient has been increasing while the number of patients has been decreasing. Aside from the financial issues at Faith Community hospital, a few staff issues need to be addressed. Several staff members are refusing to give certain requested services without following hospital directives. In one case, the nurse would not care for a bleeding patient because he had not been HIV cleared. Patients are being refused services because their insurance coverage cannot be confirmed. This has resulted in possible legal action against the hospital in some of these cases. Besides refusing services a few staff, counselors have been rendering services with out charging the client any fees. These issues not only affect revenue they create bad press and poor community relations for the hospital.




The first issue is the financial status of Faith Community Hospital is the decrease in the number of patients that are being cared for. Their financial analyst reported that the number of patients has dropped seven percent from 8,455 to 7,86; which translates into decreased revenue for the hospital. A hospital is a business whether it is for profit or not for profit, and patients are customers that purchase services. We have three options, either raise prices on goods and services, or increase the number of patients (sales), or a combination of both. To increase the number of patients the hospital must promote its services to the community and surrounding area. Advertising can be costly so the type of promotion should be scrutinized. Perhaps some inexpensive radio spots, networking thru churches and community action centers, schools and participating in community events. Most people think of a hospital as an emergency care facility where they go when a severe injury or illness occurs. The hospital has many other services other than emergency care. They should promote their special services to the community such as maternity care, counseling and Pharmacy services. These services unlike emergency care are discretionary to where the patent will receive their help. If done properly it would attract people in the local community and surrounding areas. A modest increase in charges for hospital services would be in order. Although check with insurance and other hospitals as to not exceed the insurance company’s guidelines and contracted pricing on services. A survey of neighboring hospital would aid in determining which services should be increased to match theirs. In addition, since this is a non-profit hospital, benefactors could be solicited to contribute on a regular basis.

With patient counts, dropping accounting has reported that patient cost has risen from $17 to $40 per day over the last year. Approximately one third of the cost is fixed expenses, which do not fluctuate with patient population. These costs are items such as building and equipment leases, utilities, payroll and staffing expenses. It is difficult to decrease these costs but on the other hand it can be done. The building lease possibly could be renegotiated to a lower rate. The utilities should be evaluated and energy savings implemented. Staffing should be evaluated to determine if some administration or maintenance positions should be eliminated or consolidated. Insurance policies for the building, malpractice and others can be shopped for better rates.

Insurance and government reimbursement is a major portion of a hospital’s revenue stream. The paperwork involved in processing those claims has to be done correctly and promptly. One mistake can delay or cancel reimbursements, which would be unacceptable. Follow up on insurance and government reimbursement claims. Make sure that all claims are processed and reimbursed in a timely manner. Give adequate training to insurance processors so they can complete the paperwork correctly and efficiently for each contracted insurance company.

This case study is a multifaceted problem where each one affects each other. The staff issues are affecting the community’s view of the hospital as being uncaring and irresponsible. This affects the choice of hospitals that members of the community will make when they need elective services. This in return translates into loss of revenue dollars if the patients select other hospitals. One possible solution is to provide on going scheduled training to all staff personnel. This training would be specialized to the specific departments. Extensive focus on hospital directives and policies, applicable to their work environment. Many times in crisis situations, the care provider does what they deem necessary without thought to directives or regulations. The training will reinforce procedures so the care providers and administration will remember them in crises situations. Every staff person who is responsible with interaction to the public and patents should undergo training on people skills and how to handle confrontations. Many times when people are in crises, they do not think clearly, which can affect the information that is given to the admissions personnel or care provider such as insurance or care information.

Several possible solutions exist to lift Faith Community hospital out of their financial and personnel problems. My recommendation is to start an intensive training of all staff personnel on hospital directives and government regulations that are applicable to their area of responsibility. This training should be on going to include new staff and to update everyone to new regulations and directives. The department heads should be responsible for design and implementation for their department. Periodic customer service training should be administered to staff that is in contact with patients and their families. The patients are our customers so they should be treated that way.

Have each hospital area identify elective services that can be promoted to the local community. Hire an ad agency to promote the hospital and its services. Become more involved in the community by having seminars. Organize an information fair that would show people what services we can provide. Get plenty of good positive press to keep the name Faith Community in front of people.

Review all of the standard charges for services and insure that they are at par with insurance and government guidelines for this area. If some services should be adjusted beyond, the guidelines then contact the regulating agency to see if those rates can be renegotiated.

As a hospital caring for hurting people, there are many regulations and forces outside our control, which challenge us financially. A hospital is a business so run it as a business. Treat our patients as customers who purchase our services and charge them a fair price while watching the costs of doing business and the financial problems will go away.

University of Phoenix. (001). Let it Pour My First Assignment as Executive Assistant

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