Alternative

Alternative: 1-The intermountain Hospital should research the key areas that can be improved and thus increase the overall performance, resulting in high Revenues in Limited Resources

Pros

• This will allow the hospital to maintain its quality of service and reduced cost under the limited funds, as the identification and rectification of the lose areas will allow the management to channel the resources effectively.
• Through managing the overall performance of each department, the hospital will be able to apply in the market for the additional funds from the other entities to support the cause, hence maintaining the profitability.
• This will also enable the hospital to maintain its culture and organizational structure to set and synchronize with the change in external environment.

Cons

• The streamlining of the additional process and payments might depict the additional financial reserves that the hospital maintain from the assigned funds and might result in deduction of more funds in the coming years.
• The limited resources might create tug of war between two departments in utilization of resources, resulting in compromising the service level of certain departments.
• This might hurt the performance appraisal system of the hospital, leading to effect the performance of the employees, which in turn would reduce the productivity and hence will increase the cost of maintenance in the long run.

Alternative: 2- The hospital should shift to economies of scale, which will allow it to harvest profits and revenues through treating more number of patients.

Pros

• This will allow the Hospital to gain the revenues in limited resources and since the economies of scale is based on cost leader ship, it will allow the company maintain its cost and service; level with the offered funds.
• The hospital will be able to gather more revenues which will be channeled t different departments, improvingtheproductib0ty and thus reducing the cost.
• The Fund deduction from federal government will not affect the function sand operation, organizational culture and organizational structure of the hospital.

Cons

• It will create bottlenecks in the management process, to maintain the service level as economies of scale will attract more patients at a time, this effecting the maintenance cycle, lead time per patient sand availability of resources.
• It will hinder in performing up to mark due to excessive footfalls of patients thus requiring to hire more staff to cater the demand, hence increasing the cost of operation.

 

Decision Criteria

FACTORS	ALTERNATIVE:1	ALTERNATIVE:2
Lead Time	2	1
Feasibility	1	2
Cost	1.5	2
Organizational Objectives	1.5	2
Performance Maintenance	1	1.5

 

Recommendation

The hospital should select the alternative: 2, as it will allow the hospital to maintain its organizational structure (Team- Oriented) in the limited funds, since the hospital will operate through economies of scale, the cost of operation will reduce after reaching certain level of demand in the hospital, making the hospital to earn more revenues. Also, since the hospitals will earn good revenues, it will allow the management to manage is performance appraisal system, thus ensuring the productivity and efficiency of the employees…………….

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