Case Study: Critical Thinking Faith

Pages: 5 (1450 words)  ·  Bibliography Sources: 0  ·  Level: College Senior  ·  Topic: Healthcare  ·  Buy This Paper


[. . .] Indeed, the absence of such goals is evident in the very leeway that individual staff members seem to take in important decisions such as accepting or refusing pro bono patients or continuously ordering futile tests for terminally ill patients. In such a situation, it is hardly surprising that Faith Community Hospital is facing an impending financial crunch, which may lead to the organization perforce reducing its fixed costs by 15% just to break even, providing its average reimbursement rate and its patient count stays constant. This prediction has arisen primarily due to the hospital's costs rising from $217 to $240 per patient per day, accompanied by a 7% decrease in patient population, as compared to the previous year. Since 28% of the cost per patient per day is a fixed cost, which does not change proportionately with the number of patients, it can be assumed that either there is scope to reduce these fixed costs through improved efficiencies or that the real problem lies in the area of variable costs, or both. Further, it can be argued that the absence of organizational goals in the area of targeting improved patient safety and health outcome measures has compounded the problems arising from situations where ethical, legal and regulatory requirements of the medical profession are clearly being violated. Such negligence not only adversely affects the hospital's financials since insurance companies may not reimburse costs incurred, it may well lead to litigation and negative media coverage as well.

Defining the Problem: From the preceding analysis of the key issues facing Faith Community Hospital, it is apparent that the root cause or problem really lies in:

The Mission Statement overly emphasizing on the organization's commitment to its spiritual heritage and values. As stated earlier, this emphasis has led to a broad range of interpretations resulting in conflicts with ethical/legal standards of the medical profession; non-compliance with organizational policies and processes; and organizational inability to manage its financials efficiently.

The Absence of Clearly Defined Organizational Goals leading to ineffective management of financial costs and inability to work towards improved patient safety and health outcomes.

Alternative Strategies: Since the primary problem underlying all the various issues, which need to be resolved by Faith Community Hospital, seems to be the emphasis placed on spiritual values, two alternative solutions suggest themselves.

Alternative 1: Develop an organizational management blueprint that aims towards focusing only on patients' health outcomes. In other words, plan for a paradigm shift in the organizational mission, strategy, and culture. The obvious advantage in adopting this solution is that eliminating a spiritual approach to health care will remove all conflict with ethical/legal standards and organizational interests. However, this alternative implies that Faith Community Hospital will also be giving up a key organizational strength, which it is widely reputed for among all its stakeholder groups, even if that strength has also become its biggest weakness. Further, adopting this solution also requires organizational resolve to go through the pains of persuading key stakeholder groups such as the Board, trustees, staff, and patients that such a drastic cultural change is necessary for the hospital to survive.

Alternative 2: Retain Faith Community Hospital's current strength, which is a spiritual approach to health care services, but address the obvious lacunae in organizational management in areas such as a clearly defined policy on the role of spiritual values in health care treatment and service processes; required compliance with the regulations of insurance and other managed care providers; procedure for obtaining authorization for pro bono cases; and required adherence to the medical profession and government health standards regulations. Such an approach will also entail a degree of change in organizational culture since implementation and monitoring of clearly defined policies and processes will mean reduced individual decision making powers and the introduction of a greater degree of organizational discipline. However, if the management succeeds in inviting the staff to participate in the development of the proposed changes and persuades them that Faith will not be able to survive otherwise, it is possible to reduce any resulting resentment to manageable levels. In fact, involving staff in the development of solutions to the organization's problems will also resolve the [END OF PREVIEW]

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Cite This Case Study:

APA Format

Critical Thinking Faith.  (2004, June 30).  Retrieved June 15, 2019, from

MLA Format

"Critical Thinking Faith."  30 June 2004.  Web.  15 June 2019. <>.

Chicago Format

"Critical Thinking Faith."  June 30, 2004.  Accessed June 15, 2019.