A hospital is a vital facility to a community. It provides health services and helps improve the economy of a community. The construction of a hospital (Shadyville care) geographically between the two communities will have a number of impacts relative to the Sunnydale care. It will help reduce congestion in Sunnydale hospital; this will make the personnel have less pressure and more time to concentrate on a patient thus providing better health services. It will also help increase bed spaces in the hospital; this will give better services and good hygiene to patients receiving admission. Since the personnel will be attending to a lesser number of patients, it will reduce fatigue in them, thus making them provide better health care services. The attached pharmacy will make drug access and distribution easier and more efficient. Ambulatory services will be more efficient since there will be two facilities offering the services.
Shadyville hospital will provide a range of services for both the admitted and non-admitted patients. Emergency department services and outpatient clinics will be some the services for non-admitted patients. Services for admitted patients will include maternity services, emergency and elective care, and medical and surgical services . The government will oversee the construction of the municipal hospital. It will provide all the necessary funds required in the construction. After the construction, government programs such as Medicaid and Medicare will fund the health care services . The required personnel will include the management that will manage the hospital, nurses, clinical officer, physician, pharmacist, and janitors. The expenses of the hospital will include outsourcing services for services such as cleaning, cooking, and the supply of hospital equipments and drugs. Other expenses will include water bills and electricity bills.
The fact that both Shadyville and Sunnydale hospital will offer similar services this will bring about competition. Since the government funds both health care services there will be competition for funds. Two hospitals in the same locality will experience reduced funding funding. In case there exist private contractors supplying for the hospital, competition will lead to reduce the quality of suppliers or even bring about counterfeits. Competition may lead to Malpractice when the other hospital offers personnel attractive financial gains. As both hospitals try to increase their profits, competition for patients may arise. This may lead to improved services or to poor services if a hospital lowers its price just to increase the number of patients. The hospital will face several barriers in entering this medical market. The hospital must adhere to certain standards to be certified. When certified then it can be able to use government programs for funding the health care services. Some of these standards are that the hospital must be able to provide services 24 hours a day and 7 days a week, availability of ICU facilities, and availability of personnel trained in endovascular procedures, vascular neurology, and neurosurgery . Another challenge that the hospital may face is lack of public acceptance in the community, this may still lead to congestion in the Sunnydale hospital. Lack of drugs would another challenged faced by the hospital; this may reduce the quality of services offered. Lack of enough funds to provide better health services may also be a challenge.
Being an independent hospital is being free from any outside control, meaning a privately owned hospital. Independence has both its advantages and disadvantages. Some of the advantages include financial control. It is easy to manage the finances of a private hospital. The decision making process becomes easier compared to a multi-hospital, which has many people to be considered in the decision making process. There are also able to customize their services according to the patient’s needs. Some of the disadvantages include lack of sufficient capital, being independent limits capital access, which may even lead to the closure of the hospital. Poor services are also one of the disadvantages a private hospital may experience. For example, when a hospital is a very rural area it lacks marketing power, and it needs to collaborate with a tertiary entity for cash infusion. Market power, also known as monopoly power is the ability of a business to raise and maintain price of a commodity above the level due to demand (Santere & Neun, 2013). Previously the Sunnydale pharmacy had a total market power since it was the only pharmacy for both the communities, so it could raise prices of drugs without losing customers. The Shadyville pharmacy will have zero market power, as it will need to consider Sunnydale drug prices to attract customers. Therefore, Shadyville will be a price taker and not a price setter.
An approach employed by a municipality to deliver services to a public in a municipality jurisdiction is a municipal entity. The regulation of a municipal entity is by the municipality. This will have an influence in the running of the hospital as an independent entity. The hospital will also be funded by the municipal this will increase the financing margin thus improved services. The management and funding of the infrastructure is by the municipal thus improving it. The community has two pharmacies that will increase buyer bargaining power and increase profits for the seller with better prices . Shadyville will earn a buyer concentration and reduce buyer concentration for Sunnydale healthcare.
Before the establishment of the new hospital, the community relied on Sunnydale hospital for all their medical needs. The introducton of the new health care will affect the patient flow of the old hospital. This will depend on the quality of the services that Shadyville hospital offers, if they provide quality service the viability of the Sunnydale healthcare. The two hospitals can participate in patient based programs such as advocacy for good health care. These programs can include nutrition and hygiene. Additionally the hospitals can collaborate in creating awareness in epidemic disease.
References
Gauthier, A. k., & Rogal, D. L. (2010). The Challenge Managed Care Regulation. Academy for
Health Services Research and Health Policy.
Hornyak, S. (2008). Economics. Business Econmics and Managment , 25-40.
Santere, R & Neun, S. (2013). Health Economics: Theory, Insights, and Industry Studies, 6th Edition – Cencage Learning
