Problem Definition
Our client, Central hospital, is a 350-bed hospital based in a medium-sized city. The company has normally seen strong financial results with a 1-4% operating gain each year for the last five years. However, this year they are projecting a $14 m operating loss and the situation is expected to worsen in the future. The CFO expects to be out of cash in 2 years if not resolved.
They hired you to identify the cause of this loss and how they can hit break-even again. However, since they are an important employer, laying off staff is not an option.
