Emanuel Medical Center Crisis in the Health Care Industry

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The first issue is the funding problem. The government and insurance companies are using their buying power to reduce payouts, and costs associated with running the hospital are increasing. This creates a long-term disconnect between revenues and costs. The second issue is that there is a chronic nursing shortage. This increases costs and increases turnover. The current solution, temporary nurses, is a very expensive solution that does not address this issue in the long run. The third issue is the gap in patient care. As seen in the Eckman case, sometimes patients fall through the cracks and this leads to adverse health outcomes.

The fourth issue is that the hospital is faced with the inability to invest in technology. This makes it difficult to build for the future. It also makes it difficult to attract key talent as well as patients. There is no capital left over for investment in technology. The fifth issue is a lack of ability to fill key doctor positions. Several such positions remain unfilled, for a variety of reasons, but ultimately this makes the patient suffer and reduces the ability of the hospital to meet the needs of the community. Lastly, the sixth issue is that the hospital has no relationship with an HMO. They have not been able to come to an agreement with Kaiser Permanente. This reduces revenues, reduces traffic flow and creates a problem where Kaiser is building a new hospital in the area that will directly compete with EMC.

3. Perform a financial analysis of EMC. Based on the analysis, where is the company strong and where is it weak?

EMC's financial position is weak. The company is faced with a steep decline in its cash position, which makes it difficult to invest in the future. The company is also relying on its investments for cash flow, and the current investment climate makes this a challenge. EMC has seen a strong increase in net patient revenue in 2002, reversing a flatlining trend. However, operating expenses have been a long-term increasing trend, and ballooned in 2002. Salaries and wages are increasing significantly, without any improvement in the ability of the company to attract and retain talent. Supplies are another cost that is…[continue]

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"Emanuel Medical Center Crisis In The Health Care Industry" (2011, September 03) Retrieved July 7, 2015, from http://www.paperdue.com/case-study/emanuel-medical-center-crisis-in-the-health-45237

"Emanuel Medical Center Crisis In The Health Care Industry" 03 September 2011. Web.7 July. 2015. <http://www.paperdue.com/case-study/emanuel-medical-center-crisis-in-the-health-45237>

"Emanuel Medical Center Crisis In The Health Care Industry", 03 September 2011, Accessed.7 July. 2015, http://www.paperdue.com/case-study/emanuel-medical-center-crisis-in-the-health-45237

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