Assignment 1a: Cost of Care vs. Volume of Patients and Costs of Hiring and Replacing Nurses Discussion

For this assignment, you will participate in a discussion with your classmates about issues and concepts related to the challenges confronting Brannan Community Hospital.

 Steps

 Read the following scenario:

PART A
Roger Selman, former Director of Finance, reported to the board that volume was up, but so were losses. He was unable to explain why. He said part of the problem was the hospital’s lack of a viable cost-accounting system that helps the different hospital employees understand what the actual costs of services are. (You will see this theme reoccur in the textbook as we study the problems at the hospital.) Roger defended his support of signing a contract with Mountain Lands Insurance without accurate cost data because he was concerned the loss of the contract would result in such a loss of patient volume that the hospital would not survive.
PART B
Many of the employees at the hospital are worried that one of Wes’s actions as the new administrator will be to start laying off employees. Certainly there are hospitals who have put staff reductions in place as a response to budgetary problems. It is important to understand that the largest, ongoing cost for a healthcare-delivery facility is human resources, such as clinical nursing staff.

3. By Thursday, in a post to this discussion, reply to the following:

– Do you think Roger did the right thing in supporting the signing of this contract? What is your rationale for your answer?
– How should Elizabeth Flanagan, Director of Nursing, respond to Wes if he asks her to cut nursing staff? Answer EACH of the following questions:

  • What information can you find on the Internet about the cost to replace a nurse?
  • What are some of the issues related to trying to replace a nurse?
  • If you were Elizabeth, how would you educate Wes about costs related to the human resources at the hospital?

4. By Sunday, reply to at least one of your classmates. 

Your posts should be original and directly related to the topics at hand. Incorporate in-text citations and references, formatted according to APA guidelines as appropriate. 

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