Dorothy Jacobs was recently hired as assistant administrator

| January 30, 2017

Question
CASE 5-A

East Mercy Medical Center

Dorothy Jacobs was recently hired as assistant administrator of the East Mercy Medical Center. She is a new graduate of a well-regarded master’s degree program in hospital administration and is expected to incorporate some advanced thinking into the apparently lax practices at East Mercy.

Hospitals have recently been under increasing pressure from both government and local sources because of escalating costs. Although members of the board of directors of East Mercy feel that cost considerations are secondary to quality care, its members also are sensitive to the increasing public pressure.

East Mercy is located in a rapidly growing area and is experiencing capacity limitations. In particular, according to staff personnel, the obstetrics, adult medical/surgical, and pediatric wards are “bursting at the seams”. East Mercy is considering an extensive expansion program, including expansion of the obstetric, adult medical/surgical, and pediatric wards. The board has allocated a total of $400,000 for new beds in these three wards. Dorothy is presently trying to determine how many beds current demand levels justify for each ward and how many beds to actually add, given the $400,000 cost constraint.

Dorothy and her staff have computed statistics based on the current year’s patient census data in each of the three wards. These figures are as follows:

WARD

AVERAGE NO. BEDS USED PER DAY

STANDARD DEVIATION

Obstetrics

24

6.1

Surgery

13

4.3

Pediatrics

19

4.7

Histogram plots of bed usage show a close approximation to a normal distribution for each department.

The present capacity of each ward is:

Obstetrics

30

Surgery

20

Pediatrics

24

The hospital’s architects have given the following estimates of the cost of adding one bed and all necessary supporting equipment to each of the wards:

Obstetrics

$20,000

Surgery

$26,000

Pediatrics

$15,500

It is possible for a ward to exceed its capacity, but according to state guidelines, this should not occur more than 5% o the time.

Dorothy is in the process of preparing a report to the administrator showing how many beds are to be added to each of the three wards.

Dear students:

Greetings! I have received messages from some of the students in the sense that they consider appropriate instructions on “Wilson Corporation” are unclear. As clarified the instructions for your benefit: You have to step into the shoes of Jennifer and conduct an analysis of the sampled data and supplied by the state. These data were included with the case in a excel document. The analysis should be used only descriptive statistics; ie tables, graphs and measures (central tendency, location, dispersion, or form) without being redundant. With redundant I mean you should not include a table and a graph to present exactly the same information to two or more measures that seek the same. The purpose of this report is to verify if indeed the Environmental Services Department’s right to proceed with the notice of violation of water quality. The report drawn up in a word processor should be double spacing and letter should be “times roman” (size 12). In addition, the report should contain a brief overview of the situation analysis (based with tables, graphs or measures – if any) and a conclusion. If the case raises an issue which has to make decisions or take a position, you must do so clearly. Refer to the “Course Materials” to see the rubric with which cases are assessed in this course. Be well.

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