1 . The case examine indicates which the approach to match capacity to require utilized by Arnold Palmer Clinic must be strategy (a), leading demand with an gradual expansion. The reason behind this is it is evident that Arnold Palmer Hospital is usually attempting to get capacity to stay ahead of demand, or basically by leading capacity, due to the fact the opening in the new 11-store hospital building will increase yearly birthing capacity to 16, 000, which is significantly above the approximated 13, 600 births expected during 2007, as displayed by Stand S7.
3. Furthermore, the fact the fact that hospital and Swanson particularly is deciding on to follow a multi-stage strategy in terms of the hospital’s development in which the leading two “shell floors will stay empty until a afterwards time even though the fourth-floor functioning room may be doubled in dimensions if necessary indicates that they are selecting to specifically adhere to an pregressive approach. That is certainly, the hospital is definitely choosing to open the new medical center while giving the top two floors empty, which will gratify expected with regard to a given period of time until require increases some more, at which point the most notable floors will be completed plus the fourth-floor may be doubled.
Thus, the new capacity will probably be acquired at the outset of year Back button and also at the start of year Y, as demand grows.
2 . Building a new 11-story hospital building with a capacity to support 2, 4 hundred more births than can be even expected for the next year (i. at the. 2007) is definitely a risky operation. This is also certainly not taking into consideration that the addition from the top two floors is going to add even a greater capacity on top of the 16, 000 per year that is expected without even the use of all those two flooring. There are many alterations that may happen which may in a negative way result in the clinic having a great underutilized facility. For instance, Arnold Palmer Clinic holds an excellent00 patient fulfillment at over 95% and patient pleasure scores always fall in the top 10% of U. S. hospitals selected. However , a large increase in ability such as the 11-story hospital addition Arnold Palmer Hospital can be planning to build may in some instances compromise quality. That is, taking on the additional responsibility of running and meeting the need of such a huge addition will make managing a healthcare facility effectively more complicated as well as conference all the needs of the improved number of sufferers in a sufficient manner (i. e. diseconomies of scale).
This may potentially lead to a decrease in the sufferer satisfaction rate that the hospital prides on its own so strongly on, which can thus cause a decline in demand which results in an underutilized facility. This is mainly because from the case study it can be believed that a significant proportion from the hospital’s demand relies on the fact that it is in a position to maintain these kinds of a high affected person satisfaction price. If this is harm in any way by complexity of running a fresh hospital product, then the predicted demand can be hurt as well. Another potential risk which may arise in building a new 11-story 150 bed medical center addition targeted at increasing birthing capacity to sixteen, 000 is known as a potential shortage of OBGYN’s. In the event there are not enough doctors open to accommodate the extra demand potential, then naturally the hospital may find itself with an underutilized facility.
Furthermore, apart from just the cost of building the development itself, a healthcare facility must consider the cost of the technology necessary for the addition to function, of course, if this technology is not available at the web page, the center may be underutilized. Of course , in addition there are additional problems involved including the population growth in central Florida reaching a plateau or top, or even falling for whatever reason soon. The development is based totally off the notion that population and thus require will continue to grow significantly in the region in the arriving years.
In the event that this for reasons uknown does not happen as planned, then the clinic may again find themselves with an underutilized facility. That is to say, the population inside the area might for example end up being aging and therefore birth rates may show up, etc . Likewise, they need to glance at the economic situation inside the area as well. By that we mean looking at whether young couples/families are continuing to move into the area? Is there enough job opportunities in the area that could fuel regarding this demographic group? All this may affect population growth and therefore birth costs.