Case Study: Edgewood Lake Hospital
Case Study: Edgewood Lake Hospital - Leadership in a Rural Healthcare Facility During
Challenging Economic Times
[NAME]
[DATE]
Case Study: Edgewood Lake Hospital - Leadership in a Rural Healthcare Facility During
Challenging Economic Times
Edgewood Lake Hospital (ELH) which opened in 1945, is a 30-bed, independent, not-for-profit hospital located in rural northern California. It provides inpatient and outpatient services to the close-knit community that resides within the forested and lakeside town the facility is nestled in. Although it is known for its great track record for quality and is held in high regard by the surrounding community, it has steadily experienced financial losses from 2006 through 2009. These losses can be attributed to factors both internal and external to the facility itself.
Poor executive leadership by the recently replaced CEO, Richard Fuchs, has resulted in great financial losses for ELH. Further paramount financial losses have resulted from extreme budgeting discrepancies, mismanaged funds and failure to identify loss-contributors in time to rectify them. These losses have resulted in a decreased morale of the existing staff and have made recruiting for open positions difficult. The staff’s faith in the facility and its longevity has wavered and diminished as a direct result of mismanagement and the resulting financial instability. Nearby competition from a newer and better-equipped for-profit hospital that offers specialty care is a direct and impending threat. Increasing billing regulations from Medicare that call for replacing/purchasing new computer systems are sure to add to the surmounting financial pressures.
The Board of Directors has hired a new CEO, Shannon Johnson, who comes from serving 5 years as CFO to Rocky Hills Valley Hospital, a critical access facility in rural northern California. She will be faced with the challenge of employing effective leadership in order to make ELH profitable within a 2-year
Challenging Economic Times
[NAME]
[DATE]
Case Study: Edgewood Lake Hospital - Leadership in a Rural Healthcare Facility During
Challenging Economic Times
Edgewood Lake Hospital (ELH) which opened in 1945, is a 30-bed, independent, not-for-profit hospital located in rural northern California. It provides inpatient and outpatient services to the close-knit community that resides within the forested and lakeside town the facility is nestled in. Although it is known for its great track record for quality and is held in high regard by the surrounding community, it has steadily experienced financial losses from 2006 through 2009. These losses can be attributed to factors both internal and external to the facility itself.
Poor executive leadership by the recently replaced CEO, Richard Fuchs, has resulted in great financial losses for ELH. Further paramount financial losses have resulted from extreme budgeting discrepancies, mismanaged funds and failure to identify loss-contributors in time to rectify them. These losses have resulted in a decreased morale of the existing staff and have made recruiting for open positions difficult. The staff’s faith in the facility and its longevity has wavered and diminished as a direct result of mismanagement and the resulting financial instability. Nearby competition from a newer and better-equipped for-profit hospital that offers specialty care is a direct and impending threat. Increasing billing regulations from Medicare that call for replacing/purchasing new computer systems are sure to add to the surmounting financial pressures.
The Board of Directors has hired a new CEO, Shannon Johnson, who comes from serving 5 years as CFO to Rocky Hills Valley Hospital, a critical access facility in rural northern California. She will be faced with the challenge of employing effective leadership in order to make ELH profitable within a 2-year