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Forced organizational structure changes

As the administrator you have just been informed of an impending 15% drop in revenue for the next year. Illustrate the changes in the organizational structure that you will propose to the board.

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Hello,

You have asked for some ideas about changes that might be suggested to the board of an organization that has just discovered an impending 15% drop in revenues.

As you have not specified a specific organization, I will give you some ideas using a private Long Term Care (LTC) facility as the example organization.

The first thing that you, as the administrator, must find out is what exactly has changed from last year's revenue that might be responsible for such a dramatic drop. Typically, in health care facilities such as nursing homes and LTC facilities, revenues come in from Government funding, rent charged to residents, donations and fund raising and staffing.

1. Government Funding.

Government funding does not change unless the number of residents in the facility decreases. The provincial governments in Canada fund each LTC facility a certain amount of dollars per day per resident. The funding per resident generally only increases over time and may increase depending on the care needs of each resident. So, as Administrator of the facility, you might recommend to the board that the facility increase marketing strategies if the facility ...

Solution Summary

This solution examines some ideas about changes that might be suggested to the board of an organization that has just discovered an impending 15% drop in revenues.

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