Employee Layoffs at the University Medical Center

The University Medical Center is a medium -sized , 300 bed capacity

hospital in Dasmarinas City. The facilities have grown gradually over
the years and considered one of the largest in the city. Although it is
unionized, it has never experienced an employee layoff since its
establishment.
Atty Ana Marie Pascual, the Chief Executive Officer of the hospital
for eight years, presented a rather bleak financial picture during the
most recent quarterly meeting of the board of directors(BOD) .
According to her , this is the result of the declining occupancy rate
brought about by the opening of the biggest government hospital in the
province. This has affected the income of the hospital posting a net loss
in its latest income statement. Such declines have not been unusual for
this industry because of increasing competition. So far, the only
response to these changes has been a tightening of the requirements
for equipment and supply purchases. The projected deficit for the
coming year is around Php 1,300,000.00 unless some additional
revenues are identified or some additional savings found. The BOD’s
recommendation is employee layoffs, which according to the board is
the only realistic alternative. They recommend laying off up to 25% of
the hospital’s employees.
Joy Lopez, the HR Director of the hospital was given the task to
implement the recommendation of the BOD.
Help Atty Pascual and Joy Lopez solve this problem by following the
steps:
1. State the main problem of the hospital.
2. State the different areas of consideration: Strengths of the
hospital, Weaknesses of the hospital and Opportunities.
3. Give your proposed solutions /alternative courses of action or ACA
to help the hospital overcome the problem.
4. State your recommendation based on your ACA.