The environment in which Cambridge hospital is operating is one that is filled with competition from other health care providers such as Boston city hospital (Kennedy School of Government 4). These hospitals provide same services to people in the city and therefore, they all compete for same clients. The hospital’s external environment is not also certain since regulation governing the operation of the institution are often changed by the city council (Kennedy School of Government 1). Despite its reputation declining over the years, the hospital managed to earn back its good reputation from the public as results of improving its physical structures and affiliating itself with Harvard medical school (Kennedy School of Government 7). The hospital also managed to put some other measure that helped in attracting customers on its door such as sponsoring a basketball program in the city and initiating a school-based clinic (Kennedy School of Government 3). These efforts by the hospital ensured that the hospital reputation in the city is a positive one. The hospital relationship with the city council according to the CEO, john O’Brien was unhealthy one. The city council officials keep on meddling in the internal affairs of the hospital in terms of setting regulation that governs the hospital and the approval as well as appropriation of the budget (Kennedy School of Government 2).The hospital is economically viable since it is in a position to provide services to the poor and other low-income citizens (Kennedy School of Government 40. This, therefore, implies that the hospital is meeting its objectives of service delivery. Most people in the city rely on services from the hospital. To provide its services, the hospital had to rely on funds from the federal government, the state, the city council for funds and those patients that are privately insured. This, therefore, provided greater financial sustainability concerns since if these institutions delay in providing their financial assistance, the operations of the hospital would be greatly affected and it may not be in a position to provide quality services like its competitors (Kennedy School of Government 3). The financial position of the hospital is not a good one. The hospital has to have financial problems since it has to rely on financing from privately insured patients, a subsidy from the city and federal state (Kennedy School of Government 4). Financial problems at one particular time almost forced the hospital out of business. However, the hospital chief financial officer has put some efforts in improving the fiscal terms for the hospital by helping in negotiating for better reimbursement rates from the federal government and the state (Kennedy School of Government 4). The CEO of the hospital together with his officials had to come out with various strategies that would make the institution economically viable. The first strategy initiated was that of attracting new customers by launching various innovative programs that are aimed at building the hospital reputation in the society (Kennedy School of Government 5). Consequently, the hospital ensured that there is growth in its outpatient visits as this will lead to the increased in the inpatients referrals and this move with help in generating more income for the institution. Additionally, the hospital came up with the strategy of mending its political fences with the city council in efforts to build its relationship with the authority (Kennedy School of Government 6). Looking at the present-day perspective of the CEO, O’Brien views the institution as more of a business at the moment that it used to be some years down the line. O’Brien also feels that the hospital will have achieved its objectives if it manages to reduce the illness burden in the society and at the same time manage to get higher Medicaid rates than any other hospital and this is the reason as to why he worked very hard to integrate insurance, public health and health care delivery (Kennedy School of Government 21). Conclusively, every health requires a favorable environment, strong financial position and competent personnel to be in a position to operate effectively and provide quality services to its clients.
Reference
Kennedy School of Government. "A public hosiptal's staretgy for survival:the story of Cambridge hospital." N.p., 1998. Web. 11 Feb. 2016. <file:///C:/Documents%20and%20Settings/user/My%20Documents/Downloads/1476_0%20Cambridge%20Hosp%20Case%20-%20C.%20Gabbert%202015%20(1).pdf>.
