Submitted to: Mr. Roberto P.

Daba
Submitted by: Angel Kyle T. Ortiz
Strategy Case:
Rosewater Hospital

Rosewater Hospital is a medium-sized institution that provides health care and

other treatment services to patients. Situated in Manila, it was founded by a group
of professional physicians who joined hands to work for the community and the sick
by providing medical care, therapy, and other forms of medical intervention.

Rosewater Hospital is a four-storey building with 85 beds. The Hospital offers

varying services in different departments. The Emergency Room is situated on the
ground floor; the Trauma Room provides acute services, including a Resuscitation
Room Bed; the Cardiology Room takes care of a heart patients; while newborn
babies are in Nursery Room. In addition, Rosewater Hospital has an Intensive Care
unit, a laboratory Room, other specialized wards, and outpatient departments that
serves patients who are not admitted in the hospital. Common supports units
include a pharmacy, pathology, and radiology units, the Admission, Records,
Information Technology, and Accounting Offices, a canteen for dining services, and
the Maintenance, Facilities, and Security Departments. It likewise has a Doctors’
Ward where freelance physicians treat their patients in their own clinics. In other
words, Rosewater Hospital is a complete Hospital.

The Hospital has 289 employees: physicians, nurses, assistants, managers, staff,
maintenance, guards, and other personnel with specialized functions. Some work for
eight hours while others work on 12-hours shift. In a nutshell, the employees are
competent, approachable, and patient; hospital charges are reasonable with quality
service. Furthermore; the admission rate vis-a-vis the number of available hospital
beds is 58%.

Given this admission rate of 58%, Rosewater Hospital has to deal with high electric
bills, considering that all rooms are air-conditioned. Secondly, the wages and salaries
of their employees are fixed costs regardless of the number of patients admitted.
Thirdly, Rosewater Hospital is compelled by law to admit any patient even if the
person is not able to make a deposit payment.

Hired as a Consultant, what suggestions can you give the Chief Executive Officer of
Rosewater Hospital to deal with these financial challenges? Prepare an action plan.
Title of the Case:
Rosewater Hospital

Time Context:
May 2021

Perspective:
Chief Executive Officer

Central Issue:
Addressing the financial limitations of the hospital as to continue the institution’s
operations due to the barely sufficient admission rate.

Statement of Objectives:
1. To align financial inflows of the institution to the outflows.
2. To increase the admission rate of the hospital.

Areas of Consideration:
Strength
1. Founded by group of professional physicians.
2. Complete clinic
3. Fixed cost on the salaries and wages of the employment regarding to the
number of patients admitted.

Weaknesses
1. Rosewater Hospital has to deal with high electric bills, considering that all rooms
are air-conditioned.

Opportunities
1. Rosewater Hospital is compelled by law to admit any patient even if the person
is not able to make a deposit payment.
2. Patients choice of admission.

Threats
1. Competition among other institution.
2. Transferring of staffs.
3. Bankruptcy
Alternative Courses of Action:
1. Reconstruct the 85 individuals beds into a friendly wards.
2. Firmer collection of payments and implement discount scheme for early payments.

Decision Matrix:

Alternatives
Variables Reconstruct the 85 Firmer collection of
individuals beds into a payments and implement
friendly wards. discount scheme for early
payments.
Risks 2 5
Costs 1 3
Benefits 5 2
Ease to Implementation 4 3
Total 12 13(highest)

Conclusion:
The stressing factor of the institution is the constant high cost that the hospital is
incurring with barely sufficient financing due to the unpredictable admission of
patients which is the main source of income.

Recommendation:
Rosewater hospital should reassess the expenses especially utilities to determine
the economic benefits that the institution will have if the first alternative will be
implemented.
Action Plan

Activities Objectives Division Persons Costs Time

Responsible
Formation To forms team Head Committee Php300,000 3 weeks
of that are Project head
committees assigned to Committee
specific task of
the project
implementation
Financing of To support the Project Committee Php500,000 3 months
the project project Financing head
economically
Construction To implement Monitoring Committee Php5,000,000 6 months
fully the project Committee head
Evaluation To have Head Committee Php100,000 2 weeks
of the feedbacks on Project head
Project how effectively Committee
the project has
solved the
problem

Gantt Chart

Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Formation x x x x x x x
of
committees
Financing of x x x x x x x
the project
Construction x x x x x
Evaluation x x x x xx x x x x x
of the
Project