Reimbursement Rates

ABC Hospital is a small, privately owned community hospital. It has been struggling to survive financially, as reimbursement rates have declined and consumers are being drawn to the larger state-of-the-art hospital facilities in urban areas that are perceived to have better quality. ABC Hospital was built in 1960 and has been operating in the same manner for many decades. The hospital meets legal and regulatory requirements but has not kept pace with some of the newer technologies and patient conveniences becoming more prevalent in the health care industry.

·         What strategies can the organization take to survive, improve its performance, and compete with other hospitals over the next 5 years?

·         What are some advantages or disadvantages of these strategies? Provide specific examples to support your answers.

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