OD Situation – Actual situation of business operations at AB Hospital

AB General Hospital, also known as AB Hospital, was established in January 2001 and is
one of three general hospitals under the monitor of the Department of Health of Ho Chi
Minh City. The hospital has a total land area of 17,361 square meters, originated as a
temple built by the Chinese in 1892 and is the venue for free medical examination and
treatment activities followed by traditional methods. The number of patients is slowly
growing, and the hospital has built and grown to meet people's medical needs in
Western medicine.

It was going through the breaking process of development for a long time. In 1945 the
hospital changed its name to Chaozhou Hospital. In 1978 the hospital was publicized
and renamed AB Hospital. From 1972 to 1994, the city gave the hospital a trial project to
collect a part of the fee. On May 19, 1994, the hospital was proud to take on the duty of
"caring for the health of the poor working people of Ho Chi Minh City." So, the
hospital's name was changed to AB Free Hospital. The hospital was known as AB
General Hospital until January 2001.

AB Hospital cooperates with domestic and international hospitals to develop expertise

in medical examination and treatment and transfer technology to lower levels following
State regulations. From 2001 until now, the hospital can receive medical examination
and treatment for all emergency, inpatient and outpatient patients and collects hospital
fees at the rate the Department of Health prescribes. In parallel with examination and
treatment activities, the hospital is also a practice base for training, fostering and
improving professional qualifications for the hospital's medical staff at the university
level. In addition, the hospital organizes and cooperates in researching medical topics at
grassroots, ministerial and state levels. Directing the line is also important to the
hospital's investment and performance.

In 2007, AB Hospital was recognized as an ISO 9001:2000 General Hospital. By 2014, AB

Hospital was classified as a Class II General Hospital according to Decision No.
2983/QD-UBND dated June 17, 2014 (Ho Chi Minh City Department of Health, 2016).
After more than 5 years of development efforts, AB Hospital was decided by the City
People's Committee to be recognized as a Grade I General Hospital on February 10,
2020. Currently, the hospital has completed the project of building a new building phase
1 with a scale of 200 beds, bringing the total number of hospital beds to 700 beds, in
order to overcome the difficult situation in terms of facilities, contribute to improving
the quality of people's health care.
Since October 2017, 51 hospitals in Ho Chi Minh City implemented complete financial
autonomy; some hospitals fell into low income due to their characteristics, such as 115
Emergency Center and Ho Chi Minh City Psychiatric Hospital. Meanwhile, according to
the Department of Health's statistics, by November 2017, some level district hospitals
such as Binh Thanh, Tan Phu, Binh Tan... only had about 3,000 - 4,000 visits/day for
medical examination and treatment.

The business situation was even more difficult for AB Hospital in 2018, with only about
2,000 medical examination and treatment visits per day. In 2019, there were only about
300 medical examinations and treatment visits. In 2020 and 2021, the operation of the
hospital was extremely difficult. The hospital has to cover a loss of 30 billion VND for
2020 and nearly 40 billion VND for 2021. The number of patients is small compared to
the hospital's medical examination and treatment scale, which requires AB to have
appropriate intervention solutions. With such a business situation, AB Hospital's Board
of Directors hired professional development consulting firms to help AB improve its
business operations. The budget for this activity approved by AB's Board of Directors is
800 million VND.

From the ideas of application 4.1 and application 4.2, your group write the continued
story for AB Hospital and an effective OD proposal for AB Hospital?