PAMANTASAN NG LUNGSOD NG VALENZUELA

Poblacion II Malinta, Valenzuela City

ROSEWATER
HOSPITAL
Case Analysis
PAMANTASAN NG LUNGSOD NG VALENZUELA
Poblacion II Malinta, Valenzuela City

Submitted by:
Mariella B. Angob
BSA 4-2

Submitted to:
Mr. Sixto Fernandez

March 18, 2019

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Poblacion II Malinta, Valenzuela City

I. Facts

 Rosewater Hospital is a medium-sized institution that provides

health care and other treatment services to patients.

 It is a four-storey building with 85 beds.

 It has complete facilities for the different services they offer

(Trauma Room, Resuscitation Room Bed, Cardiology Room,

Nursery Room, Intensive Care Unit, Laboratory Room, and other

specialized wards)

 It also has complete common support units (such as Pharmacy,

Pathology, Radiology units, Admission, Records, Information

Technology, Accounting Offices, Canteen, Maintenance, Security

Departments, Doctor’s Ward) for the different needs of the patients

and employees.

 It has 289 employees.

 Approximately, 58% of the available hospital beds are occupied by

patients.

 All rooms are air-conditioned.

 It is compelled by law to admit any patient without requiring them

to make a deposit payment first.

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Poblacion II Malinta, Valenzuela City

II. Perspective

 Consultant of the Chief Executive Officer

III. Time Context

 March 2019

IV. Statement of the Objectives

 To inflate the admission rate of the hospital.

 To reduce expenses incurred without compromising the quality of

services they provide to their patients.

 To make the financial inflow higher than the financial outflow of

the hospital to continuously earn profit.

V. Central Issue

 One of the issues of Rosewater Hospital is the high operating

expenses they incurred on the facilities and utilities they used for

the performance of their service to the patients. All rooms are

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Poblacion II Malinta, Valenzuela City

air-conditioned and this what mostly causes the higher electricity

bill.

 The salaries and wages of the employees are fixed regardless of the

number of patients admitted. The hospital still incurs cost whether

there is a patient or none, thus making the expenses higher

compared to the revenue they are earning.

 The admission rate is only 58%, suggesting that the profit earned

by the hospital is barely sufficient to cover the excessive costs they

incurred. This is due to the fluctuating possibility of the admission

of the patients which is one of the main source of their income.

 It is ordered by law that patients who needs to be admitted must be

admitted immediately to the hospital even if the person is not able

to make a deposit payment.

VI. Alternative Courses of Action

a. One of the possible reasons of the low admission rate of the Rosewater

hospital is the high admission costs that some patients cannot afford.

What causes the high admission costs is the expenses the company

incurs on the facilities for the services they offer. To increase the

admission rate of the hospital, they should make their services

affordable by patients. This could happen by reconstructing some of

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Poblacion II Malinta, Valenzuela City

the rooms into an economic-friendly wards wherein the patients who

cannot afford the high admission cost can still enjoy the services of the

hospital. This could increase the high admission rate and also

decrease the expenses because of the less electricity consumption.

b. The hospital could also implement a strict collection policy to the

patients who already acquired services from the hospital. Although it

is a strict policy, its implementation should not be harsh in a way that

could violate the right of the patients. This could be implemented by

reminding the patients of their dues and explaining to them the policy

implemented by the hospital. They could also provide dicounts to

those who paid on time and without any delay. This is to encourage

the patients to pay their hospital dues promptly. Although, this

alternative may not be as effective because the law compels the

hospital to admit any patient regardless of their capacity to pay to for a

deposit.

c. To reduce costs incurred, Rosewater Hospital should focused on

improving efficiency in its operations. To achieve efficiency is to ensure

that resources are dedicated on its purpose of improving safety and

quality and are not spent wastefully. These resources could be the
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Poblacion II Malinta, Valenzuela City

labor intensive wherein efficiency pertains to the productivity, and the

supply chain issues such as the inventory turns. The hospital should

implement a policy to effectively monitor the utilization of its

resources.

VII. Recommendation

Rosewater Hospital should focus on the long-term effect of the action

they are going to implement. It is best for them to start implementing

policies that would enhance the efficiency of the use of their facilities and

resources. Idle and unused rooms should be reconstructured into wards

that accomodates patients who have less capacity to pay for an

air-conditioned and special rooms. They can accommodate more patients

and incur less cost because the rooms and resources are efficiently used.

This incurs cost during the period of construction that is why the hospital

should consider their other ways of generating income to cover for the

costs it will incur. Most importantly, Rosewater Hospital should always

ensure the quality and safety of their service, equipments and facilities

since they are engage in providing health care to the patients. The

reputation of an hospital is what mostly determine its longevity in the

industry.
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Poblacion II Malinta, Valenzuela City

VIII. Action Plan

Reconstructing rooms into general wards.

ACTIVITIES OBJECTIVES DIVISION TIME

Formulation and To gather ideas and Head Project 4-5 weeks

design of the identify the possible Committee
project. outcome of the
project
Discussion of the To have a Head Project 3 weeks
proposed project comprehensive Committee
with the committee assessment of the
project
Financial aspect of To determine the Finance Committee 3 months
the project costs and expenses
to be incurred
Constructing the To implement the Head Project 6 months
wards project Committee
Evaluating the To determine the Monitoring 2 weeks
project effectiveness of the Commitee
project
implemented.