Health Administration and Organization
Introduction.
Healthcare services in any given society are highly demanded hence the need to manage healthcare plans and benefits. Mismanagement of medical facilities due to poor leadership and corruption has resulted in poor outcomes deeming most of these facilities bankrupt and are at risk of closure (Yousefli et al, 2017). Brady hospital is an example of a medical institution that is facing these challenges. Therefore, this paper aims to articulate the possible measures that would enable Brady hospital to maintain its operations.
Problem.
Due to mismanagement of Brady’s hospital resources and funds through poor leadership, the medical facility is facing closure since it cannot sustain its daily operations. The consequences of the closure of this facility will result in a negative outcome for Brady’s society as there would be a rise in unemployment as the majority of staff members are reside within the region. Furthermore, the area would suffer from inadequate healthcare services since the nearest medical facility near Brady hospital is 35miles way. Therefore, several measures are being considered by the hospital board of directors to maintain the hospital’s operation.
Solutions.
The need to maintain the operation of Brady hospital the hospital board of directors is considering several options that would help it increase the number of patients that would result in more income (Phelps, 2016). the first option proposes the hospital to join BCBSNC health maintenance organization which would guarantee income and protection from future losses. However, the hospital would have to lose its veto power during the duration of the contract. Furthermore, most of its faculty members would be fired and the members would have to take a pay cut.
The other option suggests the medical facility to become a preferred provider to BCBSNC which would provide the institution with an opportunity to increase its income while maintaining its operation. Generation of income would be through a guaranteed income of $ 2,500,000 from BSBCNS patients per month and a 25% reimbursement of bills amounting to $ 4,000,000 in the first year, and $ 3,500,000 in the second year. The extension of the contract after the second year, Brady hospital would still have a guaranteed income of $ 1,500,000 from BSBCNC patients per month and still maintain a 25% reimbursed bill amounting to $ 3,500,000 per year.
Recommendations and Conclusion.
Regarding the first option, BCBSNC health maintenance organization assures the generation of income for the hospital and protection from losses. the contract is set for five years with an extension option of another five years. This option is good considering the business aspect of the company since the company would be profitable and the management of the organization would be taken care of. However, this option would result in loss of veto power of the company since the all-important decision would be made by BCBSNC regarding the operations of the hospital. Additionally, the intentions of the contract are set to understaff the hospital as the majority of the employees will lose their job and the remaining staff would take a pay cut hence displaying no regard for the welfare of employees of the hospital. Considering the factors discussed above and the possible period of the contract, I would not recommend this option.
The second opinion guarantees the hospital a sustainable monthly income and reimbursement of bills every year while still maintaining its operations by becoming a preferred provider. Furthermore, the contract presented by BCBSNC is yearly contracts hence this would allow the board to manage the contract period. Termination of the yearly contracts would be favorable to BCBSNC but since BCBSNS insures 67% of the region, the hospital would still benefit by being a preferred provider. I would recommend this option since the hospital gets to maintain its veto power and would be able to reconstruct its management.
Reference
Phelps, C. E. (2016). Health economics. Routledge.
Yousefli, Z., Nasiri, F., & Moselhi, O. (2017). Healthcare facilities maintenance management: a
literature review. Journal of Facilities Management.