Loamshire Hospital Budget Decision case study

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Loamshire Decision Making

John Runcorn, the General Manager of the Loamshire District has received the budget estimates for the next year which details the total expenditure involved in running the Loamshire District. It was £1.5m greater than the £47.5m available due to the government tightening in finance however the district has made substantial improvements in efficiency by internal reorganisation and putting out of certain services. They also are faced with the problems of the exponentially rising cost of advanced medical technology which increases the demand for NHS Services. The expansion in hospital facilities which took place last year has also increased demand and raised the rates bill.

There are three options he has to make to continue to stay within the budget. Option 1 is to close the General Gordon Community Hospital, the smallest hospital in the area, but the only one in the northern part of the district. Option 2 is to close a ward in each of the District’s four large hospitals. Option 3 is to close one of the District’s two kidney dialysis units and either sell off the equipment to a private hospital or allow them to take over the running of the unit inside the NHS.

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Option 1 can be done quickly and that if it is closed, it enables it to be sold which thereby brings in £25m for the Authority. General Gordon Community Hospital is also quite old so it would require major costly maintenance works in the near future. However as the hospital is the only one in the northern part of the district, patients would have to travel significantly further to get outpatient, x-rays and physiotherapy treatment that is currently provided by the hospital along with a 24-bed ward. Current patients will also have to be transferred to the new, larger ...

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