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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 are charged with reviewing various facility units and
making 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).
Rubric
-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.
- Clear and thorough explanation of potential trends in the
community impacting health consumer utilization patterns.
- Clear and thorough explanation of the potential benefits of
reorganization within the unit and how reorganization could
improve its financial status.
- Comprehensive recommendations for a course of action and
the implications that those actions will have on stakeholders.
Includes multiple supporting examples for each
recommendation.

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  • 1. 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 are charged with reviewing various facility units and making 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).
  • 2. Rubric -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. - Clear and thorough explanation of potential trends in the community impacting health consumer utilization patterns. - Clear and thorough explanation of the potential benefits of reorganization within the unit and how reorganization could improve its financial status. - Comprehensive recommendations for a course of action and the implications that those actions will have on stakeholders. Includes multiple supporting examples for each recommendation.