Reference no: EM132204994
Case Study: Financial Management You are the CFO of Amityville Hospital. It is a 250 bed, for-profit hospital, renowned for its cardiology unit. The hospital has 300 employees, including 125 physicians with staff privileges. Amityville is located in a thriving community that represents its primary service region. There are many high-tech companies and industries in the area that attract families and retirees from around the United States. The area has a mild climate and offers an excellent educational environment that includes multiple community colleges and universities. There are approximately 750,000 residents in the surrounding city, and its population is growing about 4% per year. Approximately 46% ofp.265 the population is under 18 years of age, 42% is between the ages of 18 and 64 years, 12% is over 65 years of age; 49% of the residents are female and 51% are male. Amityville has one competitor, Serenity Hospital, which is located 40 miles away. Serenity is a 350 bed not-for-profit hospital with an excellent reputation. It has strong orthopedic and cardiac services and also offers oncology services, which are poorly organized and not accredited. Serenity Hospital’s financial performance is stable, and its market share is growing. Serenity has no formal orthopedic or cardiology departments, though several popular orthopedic surgeons and cardiologists maintain privileges there. The community’s premier orthopedic group practices are located near Serenity Hospital, making it inconvenient for surgeons to use Amityville Hospital for surgery except in rare cases. However, a few orthopedic practices are planning to open branch offices near the Amityville facility. Cardiologists on Serenity’s staff restrict their activity to performing consults for Amityville physicians whose patients have been admitted to the facility. Although Amityville Hospital has had moderate success in the burgeoning community, its leaders would like to ensure adequate preparation for the future, especially in the environment of health reform. You will assess key areas in Amityville’s operations from a financial perspective and report your results to the Board of Directors in a PowerPoint Discussion Questions
1. What areas of Amityville’s operations will be critical to review?
2. How will Amityville’s financial data be used in the strategic planning and decision-making process?
3. How will healthcare reform impact Amityville and its strategic planning?
4. How do the community and Serenity Hospital impact Amityville’s strategic planning?