Winchester Hospital is a privately owned institution. The hospital is at full capacity, but the governing board would like to see an increase in revenue. They’ve tasked you, the hospital administrator, with finding ways to accomplish this. If you are able to raise revenue, the board will provide you with a significant year-end bonus. Currently, 50% of Winchester’s rooms can be converted from having one bed to having two beds, allowing for more patients to be admitted.  Doctors, nurses, and other hospital staff are firmly against this move, especially because additional hiring is not planned. These stakeholders make up the vast majority of the hospital workforce. Evaluate this situation using both the utilitarianism and individualistic (ethical egoism) approaches. Define each approach and describe how each would resolve the decision. What would you expect the outcome of each decision to be? Support your conclusions with facts from the situation.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
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Winchester Hospital is a privately owned institution. The hospital is at full capacity, but the governing board would like to see an increase in revenue. They’ve tasked you, the hospital administrator, with finding ways to accomplish this. If you are able to raise revenue, the board will provide you with a significant year-end bonus. Currently, 50% of Winchester’s rooms can be converted from having one bed to having two beds, allowing for more patients to be admitted.  Doctors, nurses, and other hospital staff are firmly against this move, especially because additional hiring is not planned. These stakeholders make up the vast majority of the hospital workforce. Evaluate this situation using both the utilitarianism and individualistic (ethical egoism) approaches. Define each approach and describe how each would resolve the decision. What would you expect the outcome of each decision to be? Support your conclusions with facts from the situation.

 
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