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MHA601 Principles of Health Care Administration

MHA601 Principles of Health Care Administration /

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Problem Solving and Decision Making

Assume that you are the hospital administrator of a 150-bed hospital located in a small town. Your best friend Betty works for the local newspaper in town. One day Betty calls you and informs you about a rumor that one of the ER nurses in your hospital may have contracted HIV. The chief editor of the newspaper asks Betty to gather more information on this incident. In your discussion response, address the following questions:
What are the risk factors (e.g. legal, ethical, financial, etc.) you foresee in this scenario?
What are the problem solving processes you will embark on?
Who are the stakeholders involved in the problem solving processes?
What are the impacts on stakeholders involved in the problem solving processes?
How will you communicate with various stakeholders (e.g. employees, physicians, the board, and the public) about your findings and decisions?
Your initial post should be at least 300 words. Support your response with a minimum of two scholarly sources.
Class Text
Frates, J. (2014). Health care management: Theory in action. San Diego, CA: Bridgepoint Education, Inc.
Attachments:
week_4_guidance.docx
Answer

Capstone/Capsim Simulation Competition Experience only-Must…
Knowledge in the Capstone Simulation…
Capsim: Prepare a policy position that addresses the issue, “Does it make sense to invest in the productivity improvements offered by the HR module?”
Prepare a policy position that addresses the issue, “Does it make sense to invest in the productivity improvements offered by the HR module?”
Suppose that you apply the maximums to recruiting and training. Here are the costs:
Recruiting costs per new worker are $5000.
Each employee trains 80 hours per year at $20 per training hour
Workforce complement increases by 4.2% to cover the 80 hours people are in training.
For this exercise you need a spreadsheet and both the Capstone Courier and Annual Report. Use the Round 2 reports for the analysis. Human Resources statistics like workforce complement and turnover are on Courier page 12. Use Annual Report Income Statement’s total Labor cost to estimate payroll costs.
Assume the following productivity payoffs:
Round 1 – 102%
Round 2 – 105%
Round 3 – 108%
Round 4 – 112%
Round 5 – 115%
Round 6 – 118%
Therefore, in Round 6 each worker would be 1.18 times as effective as the beginning worker, and your workforce complement would fall to 1/1.18 or 85% of its current level.

For a quick evaluation, assume your total labor expenditure from the Annual Report Income Statement will stay flat for the next six years.

How much of a cost savings might you expect in the sixth year? For example, if the total labor costs on the Income Statement says $29M, and costs stay the same for six years, then in the last year your costs would fall to $29/1.18 M. Apply the same approach to years one through five to get a total savings over time.

Would this justify the necessary expenditures in recruiting and training made over time? Assume a turnover of 10% and no increase in workforce size. Since you are sending workers to training for 80 hours or two weeks each year, you also need to expand the workforce enough to cover the workers that are in training. We are looking for a ballpark answer, not a precise answer, so that you can decide whether or not a payoff in HR productivity justifies the expense.

So far we have assumed our workforce and labor contracts are constant. In practice the market is growing at about 14%, and your labor contract has a 5% wage escalator. How does this affect the numbers? At what level, if any, would you recommend that your company invest in recruiting and training? Are there any factors beyond the simple numbers that should be considered?

Length: 1 – 2 pages of analysis not including title page and references as well as all of the calculations that you generated to come up with your solution.

Your response should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Please use at minimum of three outside scholarly sources for support.

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