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Southeast Medical Center Case Study

776 Words4 Pages

Healthcare is a basic necessity that cannot be taken away from anyone. Southeast Medical Center was first established in the early 1920s as a 250 bed public hospital. Major expansion projects increased the hospitals size to 600 beds in the 1950s. In the 1970s southeast Medical Center became a public Academic Health Center and subsequently multiple missions of patient care, teaching, and research. The hospital also acquired in 1989 medical helicopters also acquired in 1989 medical helicopters for expansion of trauma services as well as furnishes, burn, neonatal, and transplant care region. The state legislature created a public hospital authority and in 1990 the board of trustees voted to turn the operations of the hospital to a private, not-for-profit …show more content…

The CEO didn’t take into consideration before privatization of the hospital, the cost and benefits process that will negatively affect huge losses and not meet the needs of clients, stakeholders, and shareholders. As a result to the issue each “system should use their mission and values as a guide in making difficult trade off decisions. Also each system should develop a formal strategic plan for the system with input and a high degree of interaction among the corporate office and institutions in all geographic regions. Lastly system should develop and implement explicit measures for quality of care, patient satisfaction, efficiency, and community benefit, and then provide these data to purchasers and other key stakeholders” (Wolper, L., …show more content…

Southeast Medical Center system needs formal strategic plan with input and a high degree. The CEO built the strategic plan for Southeast Medical Center on privatization and converting it to a private, not-for-profit corporation. The CEO believed that the hospital would be better off as a successful private organization than public. The CEO believed that by being a privatized company they would be able to borrow money easily. However through the years the CEO’s choice of becoming a privatized organization began to lose the company’s inability as a private corporation. The CEO didn’t set out a formal strategic plan that would propose the hospital regions at a high degree. “Health systems have multiple goals. Improving health and health equity in ways that are responsive, financially fair, or most efficient, use of available resources” (World Health Organization,

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