Arnold palmer hospital case study answers

ADMN580 University of New Capacity Planning at Arnold Palmer Hospital HW
Subject
Business Finance

Course
ADMN580

Question Description
1. Highlight an operational challenge(or opportunity) at the company

2. Recommend a strategic "next step" based on your assessment

3. Suggest a line of questioning/ topic area to explore with the consultant team during their presentation

Post your "draft email" to the associated canvas assignment (as a text entry) by the deadline indicated. Late submissions will not be accepted.ADMN 580 - CASE 03 Capacity Planning at Arnold Palmer Hospital NOTE: Please be sure to watch the associated case video embedded in the Pearson e-text. TEXTBOOK CASE Since opening day, Arnold Palmer Hospital has experienced an explosive growth in demand for its services. One of only six hospitals in the U.S. to specialize in health care for women and children, Arnold Palmer Hospital has cared for more than 1,500,000 patients who came to the Orlando facility from all 50 states and more than 100 other countries. With patient satisfaction scores in the top 10% of U.S. hospitals surveyed (over 95% of patients would recommend the hospital to others), one of Arnold Palmer Hospital’s main focuses is delivery of babies. Originally built with 281 beds and a capacity for 6,500 births per year, the hospital steadily approached and then passed 10,000 births. Looking at Table S7.4, Executive Director Kathy Swanson knew an expansion was necessary. Table S7.4 Births at Arnold Palmer Hospital YEAR 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 BIRTHS 8,655 9,536 9,825 10,253 10,555 12,316 13,070 14,028 14,241 13,050 12,571 12,978 13,529 13,576 13,994 14,898 14,600 14,111 With continuing population growth in its market area serving 18 central Florida counties, Arnold Palmer Hospital was delivering the equivalent of a kindergarten class of babies every day and still not meeting demand. Supported with substantial additional demographic analysis, the hospital was ready to move ahead with a capacity expansion plan and a new 11-story hospital building across the street from the existing facility. Thirty-five planning teams were established to study such issues as (1) specific forecasts, (2) services that would transfer to the new facility, (3) services that would remain in the existing Original Case from Operations Management: Sustainability and Supply Chain Management by Heizer, Render, and Munson © 2020 Pearson Education, Inc. Additional Content by Russell A. Miles, Peter Zaimes, and Alice Sheehan (UNH Peter T Paul College of Business and Economics) ADMN 580 - CASE 03 Capacity Planning at Arnold Palmer Hospital facility, (4) staffing needs, (5) capital equipment, (6) pro forma accounting data, and (7) regulatory requirements. Ultimately, Arnold Palmer Hospital was ready to move ahead with a budget of $100 million and a commitment to an additional 150 beds. But given the growth of the central Florida region, Swanson decided to expand the hospital in stages: the top two floors would be empty interiors (“shell”) to be completed at a later date, and the fourth-floor operating room could be doubled in size when needed. “With the new facility in place, we are now able to handle up to 16,000 births per year,” says Swanson. ADDITIONAL INFO (FROM YOUR INSTRUCTOR) Your team is a consulting group that helps large healthcare providers maximize efficiency and create long-term strategies to compete better in the market. Assume it is 2017 – and you are competing with another consulting firm to win Arnold Palmer Hospital’s (APH) business. As part of the selection process, the hospital management team has asked you to conduct an initial assessment of when to build-out the two top floors of the hospital for additional child-birth capacity. In addition to the birth figures in Table S7.4, your data analytics team provided estimates for population growth figures through 2020. Supplemental Table: Estimated Population of Florida YEAR TOTAL POPULATION % INCREASE % RETIREES* 2016 20,629,982 2.01% 19.4% 2017 20,976,812 1.68% 21.3% 2018 21,299,325 1.54% 22.6% 2019 21,646,155 1.63% 22.8% 2020 21,992,985 1.60% 23.7% * 65 years-old and above Note: This data is for the entire state of Florida, but assume the Orlando area follows the same trends. Use the birth information in Table S7.4 PLUS the supplemental demographic data above to help APH decide on when and if they should build-out the additional floors to a capacity of 16,000 births. A mis-calculation in demand would be costly to APH. If they build out the floors and demand doesn’t grow as expected,