A Lesson in Governance

3818 words 16 pages
Memo
District Hospital A Lesson in Governance

Executive Summary
Barclay Memorial Hospital (BMH) has been an important asset to their community. The hospital has been around for over 50 years and has been known to provide excellent patient care. There have been many changes that have taken place within the hospital’s organization over the past years. BMH has faced a merger with a physician group that ended negatively. Barclay Memorial Hospital did recover from this and since has went back to being a public tax district hospital, now BMH is facing many new challenges internally and externally. BMH is not reaching is full patient census. There are many departments within the hospital that need to be reevaluated since they have the
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Background: Barclay Memorial Hospital (BMH) has been a reputable hospital for more than 50 years. In the mid1940s, it was reaching its maximum capacity and the community was becoming more urbanized. Therefore, a $7.3 million bond was approved by voters to finance the construction and operation to form district hospital. In 1950, Valley Physician Group (VPG) was formed by a group of physicians with the idea of sharing knowledge and resources to improve methods of health care delivery. The district board and the CEO decided to form a physician-hospital organization (PHO) to join hands with the VPG. Barclay Memorial Hospital had to change its legal classification from a public hospital to a private, not- for -profit hospital since PHO joined with VPG. However, after two years, PHO financial report showed an undesirable profit because of poor management. The hospital brought in Gregory Schilling, a consultant, to help turn the hospital around and bring it back to district’s control. In 1998, Schilling was able to separate the hospital from VPG and was asked to become the new CEO of Barclay Memorial Hospital. Stakeholders: The key stakeholders are the community, physicians, governing board, union, vendors, and all employees. The community is very important to BMH. The community is the deciding factor for creating Barclay Memorial Hospital’s governing board within the district. Without support from the community, BMH will

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