Assessing Organizational Viability

Scenario
You are the CFO of a rural hospital. During a recent review of the organization’s financial status, the hospital was deemed “at risk” for closure. Several factors contribute to the at-risk designation, including the state’s decision to opt-out of the Medicaid expansion program, the aging population which requires more expensive care, and the changes in reimbursement from Medicare. These challenges have resulted in rural facility closures across the country. As part of the strategic management team, you are charged with reviewing various facility units and making recommendations that may avoid closure. You determine that based on the profitability reports, the OB/GYN unit of the facility is underperforming in several key financial areas.
Instructions
In a written proposal to the hospital CEO, Administrator, and CMO, discuss the following:

Identify potential challenges related to the OB/GYN unit’s performance.
Explain potential trends in the community impacting health consumer utilization patterns.
Explain the potential benefits of reorganization within the unit and how reorganization could improve its financial status.
Recommend a course of action and the implications that those actions will have for patients, providers, and investors (i.e., how might closure affect the community or how might new service offerings, such as midwife services, improve profitability).

Grading Rubric;

Criterion 1
0% of total gradeA – 4 – MasteryClear and thorough identification of specific challenges related to the OB/GYN unit’s performance. Includes comprehensive descriptions of the specific challenges with multiple examples.0B – 3 – ProficiencyDetailed identification of specific challenges related to the OB/GYN unit’s performance. Includes descriptions of the specific challenges with at least one supporting example.0C – 2 – CompetenceBasic identification of specific challenges related to the OB/GYN unit’s performance.0F – 1 – No PassInsufficient identification of specific challenges related to the OB/GYN unit’s performance.0I – 0 – Not SubmittedNot Submitted0
Criterion 2
0% of total gradeA – 4 – MasteryClear and thorough explanation of potential trends in the community impacting health consumer utilization patterns.0B – 3 – ProficiencyDetailed explanation of potential trends in the community impacting health consumer utilization patterns.0C – 2 – CompetenceBasic explanation of potential trends in the community impacting health consumer utilization patterns.0F – 1 – No PassInsufficient explanation of potential trends in the community impacting health consumer utilization patterns.0I – 0 – Not SubmittedNot Submitted0
Criterion 3
0% of total gradeA – 4 – MasteryClear and thorough explanation of the potential benefits of reorganization within the unit and how reorganization could improve its financial status.0B – 3 – ProficiencyDetailed explanation of the potential benefits of reorganization within the unit and how reorganization could improve its financial status.0C – 2 – CompetenceBasic explanation of the potential benefits of reorganization within the unit and how reorganization could improve its financial status.0F – 1 – No PassInsufficient explanation of the potential benefits of reorganization within the unit and how reorganization could improve its financial status.0I – 0 – Not SubmittedNot Submitted0
Criterion 4
0% of total gradeA – 4 – MasteryComprehensive recommendations for a course of action and the implications that those actions will have on stakeholders. Includes multiple supporting examples for each recommendation.0B – 3 – ProficiencyElaborative recommendations for a course of action and the implications that those actions will have on stakeholders. Includes one supporting example for each recommendation.0C – 2 – CompetenceBasic recommendations for a course of action and the implications that those actions will have on stakeholders.0F – 1 – No PassInsufficient recommendations for a course of action and the implications that those actions will have on stakeholders.0I – 0 – Not SubmittedNot Submitted0

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