St. Marys Hospital Case Essay

1644 Words7 Pages
St. Mary’s Hospital Case Solution 1) Upon the story presented, necessary actions should be taken to overcome the hospital’s problems. St. Mary’s Hospital last year’s numbers showed the necessity of such actions. For the first time, since the hospital started operating, they presented deficit on its revenue. St. Mary’s hospital had some major problems in a few departments. During the last few years, the occupancy, or the number of patients in the hospital, has been declining. Such problem is explained by changes made to reimbursement policies, a larger emphasis on outpatient services, and an increase in local competition. Another major problem the hospital faces is the performance appraisal system. It seems inadequate for the system in…show more content…
The nurses, which have the highest turnover rate will be the on the top of the list, losing 40 employees in their department. It is a very demanding job, with high salaries, and perhaps the ones most subject to turnover. Also to mention, around 67% of the department received ratings of as either “low performance” or “meets the requirement.” Next on the chart, the Allied Health department will be losing 15 of their staff. It is due to the fact of the department’s high turnover rate and low performance appraisals. Next, on the Central Administration department, the layoff of 25 employees would be necessary in order to achieve a good deficit cut. In particular of this department, for the first time, the salary average will be taken into consideration. The department has one of the biggest salary averages of the hospital, which is around $40,000 per person. Also, since it is a hospital, the department is not “vital” for its existence. The doctors and nurses are the key members of a hospital and reducing administrative staff seems a good alternative in this situation. Next on the
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