Competency

Employ contemporary economic principles that guide resource allocation decisions in health organizations.

Scenario

Upon reviewing the annual budget and fiscal standing of Metropolitan Memorial, the CFO has identified shortfalls that will impact the funding of its proposed expansion into rural communities. In order to secure adequate funding from the Board, the operational team must reduce current operating budget by a million dollars.

Instructions

The CFO requests that you draft a memo to the Board providing justification for the additional funding in light of the shortfall. You should review current literature to support your justification. Your memo should include the following information based on the literature:

• Explain the possible impact of resource allocation within a rural communities .
• Discuss the factors that may affect the quality of care by reducing healthcare resources to accommodate budgetary constraints.
• Discuss a potential service line and five possible ways in which the service line may maximize resource allocation.