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…

Next on the chart is the Housekeeping/Maintenance department, which will lose 10 members. It has the highest number of “unsatisfactory” and “questionable” reviews. The reduction of 10 members will lower the department’s staff in about 28%. Last on the chart is the Medical Staff, which will lose 5 employees. Even though they are the key members of the hospital, they still have a very high income. Since roughly 7% of the Medical Staff was below the “questionable” rating, the cut of some of its staff will be necessary to achieve the main goal of the hospital.

4) Whenever a large layoff takes place in a company, there might be drastic results for the “survivals.” Usually, the three main results are a big drop in morale, efficiency lost, and lost in productivity. One way to avoid and minimize these problems would be to hold off informational meetings regarding the scenario and financial status of the company. Since it was mentioned on the case about a “trusting family feeling,” any news or small talk could generate problems even before necessary actions actually take place. At one point, the inevitable has to take place, monthly meetings showing the company’s financial numbers will have to occur. It will be a good way to show employees how the situation is evolving. Once it starts, workers will have less job security and might start looking for different