Memorial Hospital Case Study

Topics: Board of directors, Corporate governance, Corporate title Pages: 3 (475 words) Published: October 8, 2014
The Day After
Case Names and Roles
Case Name: The Day After
Charlie Jones-Chief Executive
Terminated after 23 years
Russell Adams- Board Chairman
Bill Handy- Chief Operating Officer
Appointed by Charlie Jones
liked by the board but not physicians/medical staff.
Dr. Ralph Kemper- Chief Radiologist
In cohorts with the additional radiologists
Potential owner of Imaging Center Inc
Russ Adams-bearer of bad news, personal friend.

Background and Facts
The cost per patient day was next to the lowest of the seven in area hospitals. However, the average occupancy had fallen to mid 60’s in the past 18 months; causing a lay off of 134 people, two specialized nursing units, and low morale from trustees. Chief Executive Charlie Jones realizes that these were unfortunate events but has always been backed by the board in his decision-making. Charlie did acknowledge that identifying problems and resolving them in a timely manner with the board has been a long-term issue for him. He states that there was an obvious disconnect between the physicians/medical staff and the board members.

The major problem began when three radiologists purchased a 2-acre site across from the hospital where they were planning on building an ambulatory imaging center. The contract between the radiologists and the hospital does not prevent this however, does state that their full time professional services were to be devoted to the hospital. When the board moved to terminate the contract with the radiologists, the medical staff turned on the board. After a meeting, Charlie Jones was terminated as per board vote.

Organizational Issue(s)
Charlie Jones was caught in a contractional discrepancy that would cost the hospital revenue. Charlie Jones was terminated and had no contract with the hospital. The board backed his decision until the medical staff turned on them.

Decision or Resolution
Charlie Jones was terminated however, it was not stated if the radiologist’s...
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