Proposal for Improving Financial Performance in the OB/GYN Unit: A Strategic Approach for the Rural Hospital

Competency
Apply critical problem-solving skills through evidence-based and informed practices in organizational outcomes.

Student Success Criteria
View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario
You are the CFO of a rural hospital. During a recent review of the organization’s financial status, the hospital was deemed “at risk” for closure. Several factors contribute to the at-risk designation, including the state’s decision to opt-out of the Medicaid expansion program, the aging population, which requires more expensive care, and the changes in reimbursement from Medicare. These challenges have resulted in rural facility closures across the country. As part of the strategic management team, you review various facility units and make recommendations that may avoid closure. You determine that based on the profitability reports, the OB/GYN unit of the facility is underperforming in several key financial areas.

Instructions
In a written proposal to the hospital CEO, Administrator, and CMO, discuss the following:

Identify potential challenges related to the OB/GYN unit’s performance.
Explain potential trends in the community impacting health consumer utilization patterns.
Explain the potential benefits of reorganization within the unit and how reorganization could improve its financial status.
Recommend a course of action and the implications that those actions will have for patients, providers, and investors (i.e., how might closure affect the community or how might new service offerings, such as midwife services, improve profitability).
A – 4 – Mastery

Clear and thorough identification of specific challenges related to the OB/GYN unit’s performance. Includes comprehensive descriptions of the specific challenges with multiple examples.

A – 4 – Mastery

Clear and thorough explanation of potential trends in the community impacting health consumer utilization patterns.

A – 4 – Mastery

Clear and thorough explanation of the potential benefits of reorganization within the unit and how reorganization could improve its financial status.

A – 4 – Mastery

Comprehensive recommendations for a course of action and the implications that those actions will have on stakeholders. Includes multiple supporting examples for each recommendation.