Ethical Decision-Making at Faith Community Hospital

Introduction and Problem Overview

This case study examines the decision-making process from a collective viewpoint. It attempts to resolve issues within a community hospital that have arisen due to failed organizational management, inadequate ethical frameworks, and a poorly established communication system.

The primary problems that exist within Faith Community Hospital center on the following, as outlined by the CEO: (1) a lack of organizational processes that ensure uniformity, (2) a lack of standardized procedures with regard to ethical considerations in a medical environment, and (3) a lack of appropriate communication systems to ensure that everyone is aligned with the same objectives.

At this point in time, Faith Community Hospital has developed a mission statement that clearly identifies the organization's mission, which is, among other things, to provide a quality continuum of service to community members. However, variant interpretations of that mission have led to a chaotic management style and an organizational foundation that does not allow these objectives to be carried out. In addition, rising insurance costs have affected the ability of staff members to provide quality services given a fixed or declining patient population.

Organizational Goals and Stakeholder Criteria

The goals and objectives of the management team include providing "a constant continuum of services to the community in collaboration with partners sharing the same vision and values." Specifically, the common goals among board members, staff, patients, and families should be to ensure the best quality of service with appropriate consideration for personal ethical, moral, and belief criteria. The criteria for determining whether these goals are met include measuring the efficiency of service, the quality of service delivered, and the ability of the organization to break even without compromising those factors.

The forces influencing the organization's ability to meet these goals include the variant thinking styles and collective perceptions that exist among the diverse populations affected by care. As the CEO points out, Faith Community Hospital serves a wide variety of stakeholders, including the board of directors, staff, patients, and their families. The CEO reports that Faith "draws value lines at diverse junctures when it comes to applying rules, differences between ethics, laws and beliefs."

The problem is worth studying because it impacts not only the hospital but also the patients it serves, their families, and the community at large. The costs associated with solving the problem are far less than the costs of allowing it to persist.

Financial and Ethical Consequences of Inaction

As the financial analysis indicates, a drop in population of as much as 7% is currently occurring. Within the organization, 28% of costs are fixed and not associated with population size; in order for the hospital to break even, costs must be reduced by as much as 15%. Furthermore, if the internal problems related to organizational processes, ethical considerations, and communication are not resolved, staff and patients will continue to disagree about treatment outcomes. The hospital could potentially face grave financial burdens resulting from lawsuits stemming from public perceptions of inadequate care.

If nothing were done, the hospital might face bankruptcy or go out of business entirely, unable to meet the financial demands of running a community hospital or to satisfy the legal requirements of assuring the best possible outcome for all patients.