River Park Hospital Case Study

River Park Hospital has budgetary constraints on their healthcare system, leading to a limited amount of employees. With this confronting constraint, it causes the human resource department to limit the amount of employees to hire, causing the hospital to be more state-of-the-art and teaching employees how to perform more skills, rather than limiting them to a minimum skill-set. Capella Health, a major healthcare organization, has been the major sources of revenue for River Park. In 2005, River Park Hospital was one of the first four hospitals from HCA to be partnered with Capella Healthcare (Capella Healthcare, 2013). Capella plays a major role in the hospital’s capital and operating expenditures. Capital Expenditures have directly come from Capella, since Capella Healthcare has generated so much revenue after partnering with GTCR Golder Raunder and other investors. Operating expenditures for the hospital have been generated from Capella Healthcare and its partners, as well as patient services (Capella Healthcare, 2013).

These budget increases have come from the expansion of resources and the partnerships from newer and more accredited investors, leading to a greater support of the hospital. According to financial studies, revenue has increased 1.14% from the previous year, increased to 24.2 million, at the end of the 2014 quarter (see below). Between Capella and other investors, there are few other sources of funding for River Park Hospital and it is always reaching out for partnerships and investors to support them. River Park Hospital has some old sources of funding that hasn’t been dissipated; they seem to stay affiliated with their old sources, even while seeking new ones. These trends have had a positive effect on the management of the organization, as it is continuously on the rise and still