Dade General Hospital opened the Doral Urgent Care Center in January 2016. The center has been operating with losses for the first two years and the 2018 projections still show losses for the year. Hansel Padrón, the CEO of the hospital, is concerned about the financial status of the center and has approached you, the administrator of the center, to recommend whether it should be closed or remain open. If the latter decision, then what is the plan of action to make the center profitable.
You ask your manager, Ellen, to provide you information on the financial statements, any other financial and operational data. She comes to you by the end of the day with exhibits A, B and C. With information in hand, you forward the information to Janice and Elliot, the hospital’s marketing director and financial analyst, respectively. You also schedule a meeting early next morning with them and Ellen to discuss this project.
During the meeting the next day, Janice explains the marketing program and the success it had at the other urgent care center. She also discloses that the Doral center has different demographics and therefore she cannot guarantee the same success.
You asked Elliot about the hospital allocation but he explains that the allocation cannot be changed based on hospital policy. It is also a way to fully price each service. It is based on number of visits and the allocation increases approximately 3% every year.
After some discussion, the four of you agree that you need to prepare the following for the CEO:
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