Conflict Resolution at General Hospital

1. Discuss the conflict occurring at General Hospital.
General Hospital was established in 1968 as a non-profit organization, in order to provide medical assistance for the patients in their area. The hospital was very successful, so in 1981 they expanded their facility from 175 beds to 275 beds, and made some much needed upgrades to their emergency room. General Hospital was very successful with 90 percent of their beds occupied until a nearby medical center went through major renovations and upgraded to state-of-the-art medical equipment. Once the medical center’s upgrades were completed, General Hospital noticed a 25 percent drop in their patient occupancy, and the found themselves taking in more Medicaid and Medicare patients which brought in significantly less revenue than private insurance patients.
Conflict is defined as a process in which one party perceives that its interests are being opposed or negatively affected by another party. (Hellriegel, D. & Slocum, J.W. Jr) In the case of General Hospital, the two parties in dispute were Mike Hammer, the CEO, and the physicians represented by Dr. Mark Williams, the director of medicine. Hammer also faced opposition from the board of trustees. The conflict stemmed from the fact that the hospital was no longer competitive and was losing money. In order for cost to be reduced, General Hospital’s CEO Mike Hammer will need to gain the support of the physicians on staff. Mike Hammer felt the organization could reduce their expenses if the physicians changed some of their medical ways of practices. He communicated his concerns to Dr. Williams; however Dr. Williams felt their current practices were the best way to operate the hospital and was opposed of any of Mr. Hammer’s ideas. Mike Hammer was unable to convince the physicians or the board to adhere to any budget cuts