Service line Development Term Paper Example | Topics and Well Written Essays - 1750 words

Service line Development - Term Paper Example Its dedicated medical staff guarantees quality healthcare to the community. However, the declining volume of patients has led to losses this year. An orthopedic service is important in a hospital; however, trinity community hospital lacks this service line. Lack of this service makes it prone to competition, especially from regional hospital, which has a 350-bed facility inclusive of strong orthopedic services. Trinity community hospital is a 150-bed facility, and therefore, to stand at a competitive advantage, the hospital needs to develop an orthopedic service line through building, buying, or leasing. According to the case study, 5000 square foot is required for the orthopedic service line; construction will cost $120 per square foot, while price for building is $700,000. The rate of lease is $20 per square foot. The hospital management is also expected to cater for repair costs and taxes as well. This essay will discuss whether the best option for the hospital is to build, buy, o r lease space for the new orthopedic service line. Service Line Development Advantages of Building space for the new orthopedic service line Currently, building adjacent to the hospital will cost $700,000; however, the campus is running out of space to expand. Needless to say, the constructed building will have depreciable life of 20years. Despite the high expenses of building a service line, the hospital will have the opportunity to suggest its plan, which is not the case when leasing an already built building. According to Neducin, Krkljes & Folic (2010, p.294), hospital facilities should comprise of a friendly environment, which is inviting and attractive. Such an environment is less stressful for recovering patients, and contains outdoor spaces. Building a facility enables the management to choose an appropriate location where construction takes place by taking environmental factors into consideration. Today, hospitals lack a positive healing environment, as they are located on limited space, especially in urban places, and therefore, blocking the access to the green environment or landscape views, which foster quick recovery. The proposed orthopedic service line will deal with the treatment of musculoskeletal system, which consists of joints, tendons, and muscles, and as a result, such patients require a friendly environment. Building is advantageous compared to leasing space; this is because the hospital may not manage to find an amicable rental space. However, it may consider renting the building if the price if affordable. The rise in costs and the increasing competition influences healthcare facilities to find ways of increasing their market share. Trinity community hospital has chosen to add an orthopedics service line, which is aimed at improving healthcare, as well as the financial performance. In addition, when building a facility, it can be designed in the desired manner, hence avoiding conflict of interest. Finally, once the hospital builds the orthopedic facility, it officially belongs to them, and can lease any extra space available. Advantages of buying space for the new orthopedic service line When buying space, the advantage is that fixed costs are included in the contact, and therefore, the management is aware of the amount to be spent. In addition, the management can rent out additional spaces, which increase their financial returns. Buying space can be attractive, as the building is readily