Academic Hospital and Western Hospital Merged, There Essay

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Academic Hospital and Western Hospital merged, there have been some minor adjustments that have been made for services that were eliminated in each facility. While Academic Hospital eliminated its small maternity service, Western Hospital eliminated most of its internal laboratory, to make a difference in the profit, they are still owned by one parent organization, yet they are still two separate profit centers, with their own policies, procedures, and profits for those procedures. However, lately there has been some problems that came about when Western Hospital demanded a reduction in what the facility was charging for the laboratory work associated with an Amniocentesis Test that give about 300 times a year. This procedure was always executed in the outpatient department at Western Hospital on a normal basis, but after the amalgamation with the two facilities most of the laboratory work for this type of test has been performed by the doctors at Academic instead of Western.

Just recently, Western discovered found that there was a self-regulating laboratory that would administer the same test to their patients that would do the work for $375, compared to the $400 Academic was charging.

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Since Western only performing 300 of these Amniocentesis Tests annually, the amount of money that was discussed within the hospital's administration was not significant to the board. Furthermore, the committee did concur that imperative guidelines were occupied and that a decision should be made as soon as possible to resolve these issues and determine what the best choice for this particular testing is. The joint oversight committee, that was created when they combined the two hospitals, was able to determine that the straight increasing costs of labor and supplies for performing the Amniocenteses testing $300. Moreover, Academic Hospital was also charging an extra $90 for fixed cost that would be gained regardless as to whether the Amniocentesis Laboratory tests were done at Academic, and another $60 for their revenue. The joint committee also realized….....

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