Name: Catalya,Shaznay Nichole

Case Study

Employee Layoff at the University Medical Center

The University Medical Center is a medium-sized, 300- bed capacity hospital in Dasmarinas City.
The facilities have grown gradually over the years and considered one of the largest in the city. Although
it is unionized, it has never experienced an employee layoff since its inception.

Sister Lallaine Buenaobra, the Chief Executive Officer of the hospital for eight years, presented a
rather bleak financial picture during the most recent quarterly meeting of the board of directors or BOD.
This, according to her, is the result of the declining occupancy rate brought about by the opening of the
biggest government hospital in the province. This has affected the income of the hospital posting a net loss
in its latest income statement. Such declines have not been unusual for this industry because of increasing
competition. So far, the only response to these changes has been a tightening of requirements for equipment
and supply purchases. The projected deficit for the coming year is around P1, 300,000.00 unless some
additional revenues are identified or some additional savings found. The BDO’s recommendation is
employee layoffs, which according to the board is the only realistic alternative. They recommend laying
off up to 25% of the hospital’s employees.

Melinda Dumael, the HR director of the hospital was given the task to implement the
recommendation of the board.

Help Melinda and Sister Lallaine solve this problem by following the steps:

1. State the main problem of the hospital.

Ms. shaznay brought in an outside group to look at her hospital's inefficiencies,
the group found that the number one opportunity for cost-cutting was in
avoidable patient days. Patient days can add up quickly if providers aren't
focused on moving patients to other facilities or their homes once appropriate.
She says the hospital took several approaches to decrease patient days. They
worked with nursing homes and extended care facilities to make sure patients
could be transferred on weekends, to avoid keeping a patient in the hospital
until Monday when they were ready to be moved on Saturday. The hospital also
worked with physicians on length of stay and showed data that demonstrated
how each physician stacked up compared to his or her peers.
2. Sate the different areas of consideration following the guide below.
Strengths of the hospital:
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Weaknesses of the hospital:
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Opportunities:
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 Threats:
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2. Give your proposed solutions/alternative courses of action or ACA (minimum of three) to help the
hospital overcome this problem.
a. ______________________________________________________________________________
______________________________________________________________________________
b. ______________________________________________________________________________
______________________________________________________________________________
c. ______________________________________________________________________________
______________________________________________________________________________
3. State your recommendation based on your ACA.
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4. Provide a conclusion/detailed action plan to implement your recommendation using the guide below.
Specific Activity Person Responsible Time Frame Budgetary
Requirements