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Hospital Administrator

Real-Life Activities

Real-Life Decision Making -- Solution

You close the unit.

You feel the hospital should focus its resources and energies in departments where lengthy and labor-intensive hospital stays are less likely. This was the real-life decision made by Fran Hanckel, the chief operating officer at a medical center.

The decision wasn't popular. One hundred people lost their jobs. Between 60 and 70 patients were discharged to other centers.

Hanckel says it was a really tough decision, but time proved it was the right one. Two years after she closed the substance abuse and mental health unit at her hospital, insurance companies slashed coverage. She watched other centers struggle to keep going and eventually close with multimillion-dollar debts. Hanckel says her decision caused short-term pain but long-term stability for her hospital.

Diane Lemon is a hospital administrator. She says decision-making skills are critical. "In this time of financial need, decision making is critical and people are hired for good decision-making skills," she says.


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