Hospital Strategic Services
Case Study: Determining Long Term Bed Needs
Challenge
St. John West Shore and St. Vincent Charity Hospital are operated in partnership by the Sisters of Charity of St. Augustine and the University Hospitals in Cleveland. Each had perplexing questions related to bed demands.
St. John West Shore Hospital was in a growing market and had been increasing its market share at the expense of surrounding hospitals. St. Vincent Charity Hospital operated in an urban environment with different patient demographics, but also had competitors who appeared to be on the verge of closure.
Management was unclear as to how to evaluate this market and plan for future bed demands. And like many hospitals, they were completing this evaluation in a capital scarce environment.
Solution
An extensive model was developed to project the future needs based on four major factors. These were population in the market, demographic mix and aging of the population in the market, competitive position/market share, and factors changing the utilization of healthcare. Those factors included the impact of the shortage of specialty physicians, shortage of nursing staff, the emergence of consumer driven healthcare, and the emergence of new technology.
Result
The result was that management was able to develop a defensible model of the long-term bed demands. That model gave them confidence as they developed recommendations for capital allocation, and provided a defensible rationale which they could review with the board. The result was a greater consensus on beds required.
