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Whittaker Memorial Hospital. Case Analysis - Research Paper Example

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The problems relating to accounting and administrative functions ultimately led towards deteriorated financial position of Whittaker Memorial Hospital. Consequently, the hospital was renamed to Newport News General Hospital in order to develop its various medical facilities and services. …
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Whittaker Memorial Hospital. Case Analysis

Download file to see previous pages... Due to the demographic changes in the community of East End and incompetent hospital care pricing, the institution had to face huge financial loss and ultimately became bankrupt. Taking into account the major problems faced by Whittaker Memorial Hospital, the paper utilizes SWOT and cause and effect analysis frameworks to obtain an in-depth view of the case scenario. Based on the obtained findings, in order to improve its financial position, certain actions have been suggested. These include hiring qualified accounts personnel as well as effective physicians and developing hospital care pricing structures in a more effective way. Summary Whittaker Memorial Hospital was established in the year 1908 in the East of Newport News. Further in the year 1914, Whittaker Memorial Association was founded as a community based non-profit organization for the purpose of offering effective governance and monetary help to the hospital. The association had raised considerable funds within a year to construct a hospital building in the East end of Newport News. Alike several African American hospitals, Whittaker Hospital established a school of nursing in order to train personnel required for its smooth operations. The association reconstructed the hospital in the year 1956 for delivering effective medical facilities due to increased demand of shipbuilding and naval role of the East end. Gradually, the financial position of the hospital became detrimental. In this similar context, the expenditures of the hospital were recorded to exceed its revenues by a significant percentage by the end of 1984. Apart from the demographic changes witnessed within the community of East Newport News, the incompetent healthcare pricing strategies at Whittaker Hospital was also one of the major reasons for its deteriorating financial position. In this regard, it has been observed that the average charge per day of the hospital was US$ 381,000 as compared to other hospitals which amounted to US$ 456,000. The hospital also experienced significant problems in its accounting procedures owing to its lacuna in maintaining transparency and thus disclosing incomplete financial recordings. The management of Whittaker thereafter decided to merge the hospital with other reputed brand in the community with the intention of coping up with its financial difficulties. Subsequently, the financial health of the hospital was observed to be improving due to the introduction of new administrative functions and restructured service operational procedures, even though at a fluctuating rate (Makamson, 2006). . Discussions of the Major Problems One of the major problems relating to Whittaker Memorial Hospital can be identified as its inefficiency to conduct the operational procedures and to maintain transparency in the accounting treatment of its financial statements. This may be explained with reference to the fact that after restructuring its corporate name as the Newport News General Hospital in 1985, it had to face a significant financial loss of US $184,000 due to its managerial and administrative problems. The importance of this particular problem can be identified as it focused primarily on the integrity enhancement and brand image strengthening of the hospital through the appointment of the city Mayor to take up the charge as an administrator and likewise enhance the management system of the hospital. The Mayor took certain deliberate measures which included the purchase of a mainframe computer, laying off the unproductive personnel as a cost retrenchment strategy and reducing hospital staffs for the purpose of solving the identified problem. Apart from the administrative and accounting problems, another critical problem ...Download file to see next pagesRead More
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