Victoria Hospital Case Analysis

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BACKGROUND Victoria Hospital, London was owned by Victoria Hospital Corporation, comprising approximately 130 corporate members. In 1995 the hospital had 650 in-patient beds designated for acute care and rehabilitation, further the hospital operated a network of ambulatory services including clinics, day surgery and one day medical stays. The hospital’s area of expertise included women’s and children’s care, cardiac services, and life support/trauma services. It employed about 4000 people and trained 1100 students from 20 health related disciplines. Since the hospital had two campuses, management’s longstanding objective was to consolidate on Westminster campus in order to reduce operating cost and enhance co-ordination of service. The hospitals in London, Ontario were funded through provincial Ministry of Health and were regulated by Public Act of Ontario. ISSUE In 1995 the provincial budget deficit of Ontario exceeded $10 billion which led to downgraded provincial credit rating and reduced federal transfer payment to health care, the ministry had significantly cut hospital budgets which was reflected by following measures * The ministry also tied allocation of funds to hospitals subject to efficiency and utilization patterns as shown by case costs. * The teaching hospitals lost their advantage as they were funded on same criteria as community hospitals i.e. standard fee based on type of service provided. * The government was also setting policies to drive down number and length of hospital stays by encouraging more services on out-patient basis. * The de-listing of several health services would result in patient paying the fees of these services which were previously a source of revenue for the hospital. * City wide rationalization of health services and recommended relocation of cardiac and neuro surgery to University hospital Factors

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