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Established in 1987, ABC Community Hospital not-for-profit is an acute
care hospital located in an east coast Metropolitan area. With a staff
of nearly 200 physicians and specialists, 800 employees and 100
volunteers, they offer a full range of healthcare services. They are
accredited by the Joint Commission on Accreditation of Healthcare
Organizations. The hospital has been profitable for the last 5 years
with a profit margin of 3-4%.
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In March 2012, XYZ Healthcare System, a private, for-profit health care
chain, took over management of the 400-bed ABC Community Hospital. In
May 2013, officials began to discuss a proposal to build a new wing
devoted to a Cancer Center and ancillary services devoted to the
treatment of Cancer. The new wing would have 30 acute care beds, four
surgical operating rooms, intensive care unit and extensive support
services, including physical therapy and Hospice care. All patient rooms
would be private. There is no Cancer Centers within a 200 mile radius of
the hospital service area.
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The board has come back with more question that they want you to add to
the original paper with 2-3 pages of new content:
Compare and contrast the kinds of decisions that are made in the Cancer
Center capital investment decision analysis for the for-profit and
non-profit healthcare facilities using the four stages of capital
decision making process.
What information is needed by the CFO to evaluate the Cancer Center
capital investment project?
Who, internally from the healthcare system and externally, should be
involved in the capital investment decision process to determine the
feasibility of the Cancer Center?
Combine the new content of 2-3 pages with the paper from Unit 4 for a
total of 5-8 pages not including title and reference pages.
