Memorial Hospital Case Study Essay

Published: 2020-04-22 15:25:15
405 words
2 pages
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Category: Corporate governance

Type of paper: Essay

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Background and Facts
The cost per patient day was next to the lowest of the seven in area hospitals. However, the average occupancy had fallen to mid 60s in the past 18 months; causing a lay off of 134 people, two specialized nursing units, and low morale from trustees. Chief Executive Charlie Jones realizes that these were unfortunate events but has always been backed by the board in his decision-making. Charlie did acknowledge that identifying problems and resolving them in a timely manner with the board has been a long-term issue for him. He states that there was an obvious disconnect between the physicians/medical staff and the board members.

The major problem began when three radiologists purchased a 2-acre site across from the hospital where they were planning on building an ambulatory imaging center. The contract between the radiologists and the hospital does not prevent this however, does state that their full time professional services were to be devoted to the hospital. When the board moved to terminate the contract with the radiologists, the medical staff turned on the board. After a meeting, Charlie Jones was terminated as per board vote.

Organizational Issue(s)
Charlie Jones was caught in a contractional discrepancy that would cost the hospital revenue. Charlie Jones was terminated and had no contract with the hospital. The board backed his decision until the medical staff turned on them.

Decision or Resolution
Charlie Jones was terminated however, it was not stated if the radiologists contract was terminated as well. The hospital now needs to find a new CEO on top of dealing with the issue of Imaging Center, Inc. Charlie is now considering legal action.

Reasoning
Charlie Jones was terminated because the physician board members and additional administrative members moved for him to be terminated. The medical staff sided members felt that Charlie Joness priorities were not in their best interest.

Outcome
It would appear that the issue surrounding Imaging Center, Inc. is still a very real problem and that the termination of Charlie Jones did nothing to resolve this. Board members made a decision out of haste and should have resolved the radiology issue before considering Charlie Joness employment.

Recommendation (3 according to the likert scale)
I would recommend that the issue surrounding Imaging Center Inc. be resolved immediately. Charlie Jones should have been given a leave of absence however, given the current circumstances, the board must discuss Charlies reinstatement.

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