1. Scenario You are the CFO of a rural hospital. During
ScenarioYou 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.InstructionsIn 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.