Case of Perpetual Mercy Hospital Essay

1338 Words Feb 23rd, 2011 6 Pages
Case of Perpetual Mercy Hospital

Problem
The broad focus of this case is one of strategy planning. Perpetual Mercy Hospital has to determine the best course of action to help the Downtown Health Clinic achieve its stated objectives of expanding the hospital’s referral base, increasing referrals of privately insured patients, establishing a liaison with the business community, and becoming self-supporting within three years of its opening. This last objective is jeopardized by the possibility of a competing clinic opening 5 blocks north of the DHC’s location. The underlying problem is that the DHC may not be self-sufficient within the projected timeframe, regardless of competition.
Alternatives
The following alternatives have been
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Its financial situation is stronger than most of the metropolitan-based hospitals in the United States. It is debt-free and has the highest overall occupancy rate among the city’s six general hospitals. It is in charge of the hospital’s Downtown Health Clinic.
CULTURE
Customer-oriented, DHC culture focuses on fulfilling customer requests, offering specific services, and improving the image of DHC and PMH to the community.
VALUE SYSTEM
The value system of DHC is dependent on inner-city residents. The income of new families and young people will be definitively the key point for increasing the value of the clinic. DHC is based on Customer Value, which is determined by the relationship between benefits (recovering the expenses for clinic expansion) and the sacrifices necessary to obtain those benefits. DHC is furthermore very focused on customer satisfaction. Often they conduct marketing research in order to understand if the services proposed would fit the needs of their customers (e.g., illness visits during lunch time).
Environment
PPOs and HMOs have restricted the use of inpatient care, which led to the establishment of ambulatory health care facilities like the Downtown Health Clinic. The lack of 24-hour physician staffing prevents the DHC from depicting itself as an emergency care center.
Expectations of ambulatory care facilities include extended hours and short waiting times. This makes it more critical that the DHC be open for at least 12-hour days in

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