Capella University MBA-FPX 5310 Whitaker Memorial Hospital Feasability Study
Section I: Organization Background
1.1 The organization’s mission and
... [Show More] vision.
Whittaker Memorial Hospital a four room wood building founded in 1900 by four African
American physicians. An attempt to build an African community hospital for the East End
region of Virginia. The Hospital was one of the twenty colored hospitals in the nation within its
time. The mission of WMH was to serve healthcare needs to African American community in a
time of segregation. By 1914 WMH expanded establishing itself as a community nonprofit
organization raising funds to construct a brick and mortar building. Making an addition to the
hospital it opened up school of nursing to train needed personnel. In the years to come WMH
increased its beds with additional funding ultimately becoming a public hospital known as The
Newport News General Hospital. Even though WMH set out to become a well-established
African close knit community of physician and patients it struggled to keep up with its finances.
The hospital began to lose money accumulating debts due to poor management, demographic
changes within the population and competition. The financial debt accumulated by the hospital
throughout the years led to several attempts to save the hospital by rebranding, investing in main
frame computers and talks of mergers. The hospital board members could not agree on the best
strategy suited for the success of the hospital. However, lead board member Dr. Bryant will try to
salvage the hospital by strategizing a business plan indicated in the Journal of International
Academy for case Studies “Preserves an historic institution and provide to the East End a
sustainable hospital owned by the community” (p.88)
1.2 The current client base it serves.
The Newport News General Hospital was built within Brookville Heights neighborhood in
the East End of Newport News, Virginia. According to the Census of in 2010 there were
WHITTAKER MEMORIAL HOSPITAL FEASIBILITY STUDY 3
180,719 people with a large population of African American (40.7%) and White (49%). The
current clients the Newport News General Hospital would serve range from according to
Wikipedia Newport News, Virginia article “The age distribution is: 27.5% under the age of 18,
11.5% from 18 to 24, 32.2% from 25 to 44, 18.8% from 45 to 64, and 10.1% who were 65 years
of age or older” (n.d). This particular area contained low income families with an average
income of $36,597 making a large of its citizens living in poverty. In addition this area contained
prominently higher governmental insurance such as Medicaid and Medicare. The nearby
competitive hospitals specialized in obstetrical care, and Emergency rooms services.
1.3 Current revenue streams.
Currently Newport News General Hospital is receiving a majority of their revenue from
their psychiatry department largely due to drug rehabilitation. The psychiatric department
originally started with 22 beds however with their current demands it increased. Another source
of revenue for the Newport News General Hospital is their Emergency room. According to the
Journal of international Academy (2006) for case studies, Newport News General Hospital
during 1980 had 3533 admissions that year (p.90). The hospital also offered inpatient care and
outpatient services which was not always offered by their nearby hospitals such as Sentara
Hampton General Hospital. The Newport News General Hospital can increase their stream
revenue if they strength on their current strong revenue sources as well as adding programs
dedicated for their community demographics.
1.4 Staffing.
As of 1980 Utilization, Cost and Service Data Newport News General Hospital employed
268 personnel. Their staffing included physicians, board members nurses and administrative
personnel all contributing to success of the hospital. In order to increase the proposal
WHITTAKER MEMORIAL HOSPITAL FEASIBILITY STUDY 4
Rehabilitative service program the staff required will need to increase as well as the
institution should include volunteering services from their community members in order to
keep costs down.
1.5 Tax status
Whittaker Memorial hospital began operating under a nonprofit 501 c3 community hospital.
Section II: Objectives of the Proposed Program
The hospital and community may benefit from the proposed program for a Rehabilitative
Service program in house. This program should be considered for this particular situation due to
the fact that one of the hospitals fasts growing department is psychiatric care. The hospital will
not need to construct and entire new clinic, it would need to allocate their resources to expand on
their current psychiatric care.
The need to develop this program will be beneficial for the community as well as assist
the hospital gain a much needed specialization. The Rehabilitative services would include
services needed for their demographics such as Deaf and hard of hearing services, serious mental
illnesses, supported employment services and Case managers for temporary assistance for needy
families. The objective of the Rehabilitative Service program is to provide the community with
much support by educating, diagnosing and setting up the community to collaborate with their
own community hospital. One of the fastest growing issue within this community is the need for
drug rehabilitation services. The community will directly benefit from having programs ran by
specialized physicians. They will be get access to counseling, intervention, and internal hospital
referral system without having to outsource treatments. According to National Drug Intelligence
Center “in 1998 Virginia spent nearly $1.8 billion--approximately $267 per resident--on [Show Less]