Pate Memorial Hospital

In mid-April 2000, Pate Memorial Hospital (PMH) uncovered a concerning piece of news. This news was discovered by Sherri Worth, assistant administrator at Pate Memorial Hospital in charge of the hospital’s Pate Health Clinic (PHC). Worth discovered that a firm had been conducting a study to determine whether there was sufficient demand to establish a clinic five blocks north of the Pate Health Clinic, the opening date for this potential clinic was May 2001. Worth believed that the firm responsible for these tests were Medcenter. Medcenter, a privately owned suburban ambulatory facility, appeared to be successful in its suburban location.

The objectives were detailed to Worth by the Pate Memorial Hospital Administrator, Dr. Roger Mahon. These objectives are: ?To draft a concise analysis of Pate Health Clinic’s position ?Specify and evaluate the alternatives assuming Medcenter does open up a clinic five blocks north of PHC ?Specify and evaluate the alternatives assuming Medcenter does NOT open up a clinic five blocks north of PHC ?To have the Pate Health Clinic be self-supporting by April 2001 The Pate Memorial Hospital is financially stronger than most of the metropolitan-based hospitals in the United States.

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It has the highest overall occupancy rate among the city’s six general hospitals and is debt free. Despite PMH’s success the board of trustees had serious concerns about its patient mix. Without a stronger stable inflow of short-stay, privately insured patients, the financial health of the hospital would be jeopardized. This situation called for an ambulatory facility to be opened downtown 10 blocks north of the hospital, thus the Pate Health Clinic was built. The Pate Health Clinic is a non-profit firm that opened in May 1999. Each month since the opening the PHC has been closer to the goal of self-supporting.

Starting out in May 1999 with a net loss of $53,028 and ending in March of 2000 with a Net loss of $11,940. PHC faces both opportunity and issues with the growing area in which the clinic is located. Long wait times and limited hours hamper the clinic’s success. Now, with the threat of a new clinic opening just 5 blocks north of the PHC it is time to make improvements. PHC must not only focus on profitability, but also awareness in the community. Dr. Roger Mahon said it himself: “We have a lot riding on the PHC. Making it work involves not only dollars and cents, but our image in the community as well.