Tulsa Memorial Hospital Case Study

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Background Tulsa Memorial Hospital (TMH) is one of the nine acute care hospitals that serves in the general population area. Historically, it has been highly profitable due to its well-appointed facilities, excellent medical staff, good-standing reputation for quality care and its ability to give individual attention for each of its patients. The hospital, in addition to its inpatient services, operates an emergency department and an urgent care center located two miles from the hospital across the street from a major shopping mall. Urgent care clinics are for individuals seeking non-life threatening treatment. These clinics provide another level of care to the community and the intentions of urgent care are not to replace emergency …show more content…

Harley looks to his chief of financial officer, Nicole Williams to investigate whether close urgent care clinic, continue operating the clinic as is or to continue operating with an expansion of a new marketing program. The cost to close, based off its long-term building lease of the clinic, is $37,500. Data Collection
Analyses used to collect the data were the profitability, break-even and utilization/volume. A dashboard analysis was also used. To analyze the profit of the organization over the next five years, profitability analysis was used with considering inflation rates for each item. Break-even analysis was used to compare the amount of additional visits per day if the clinic operated as-is to operating with the expansion of the new marketing program. The break-even analysis was also used to recognize the volume required to cover the costs of the marketing program. The dashboard analysis was then used to summarize all analyses used.

Data Analysis With no change to volume, the forecasted average month profit and loss statement sought no profit for the average month of 2014. If TMH were considering to implement the new marketing program, they would have to generate an additional twenty-eight visits to break even. As Figure 1 shows, without the program, the hospital would have to generate an additional of twenty visits a day. Without implementing the program we found

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