Listen to the TED TALK and answer the questions below.
You are the department manager within a hospital, and the CEO has indicated budget cuts must be made in the upcoming fiscal year after a year of revenue shortfalls occurred. You currently have $700 million in expenses and only $500 million in your allowed budget. As the department manager, you must determine which patient(s) will receive treatment, which one(s) must wait, and whether much-needed facility updates will occur. Here is a brief synopsis of the simulation regarding the hospital’s budget and dilemma: One 35-year-old cancer patient who needs significant time with the doctor, medical supplies, tests, and around the clock care. Cost: $135 million Emergency Room operations for daily care and treatment of about 100 people. Cost: $155 million Two senior patients who need hip replacement surgery. Cost: $50 million 10 patients (ranging in age from 18 to 45) receiving assistance in your inpatient drug/alcohol rehab unit. Cost: $100 million An MRI unit that is on the fritz and could die any day. Replacement cost: $170 million One of your two X-ray machines is inoperable and must be replaced. Cost: $40 million The ambulance drive-in area was damaged and needs to be repaired. Cost: $15 million Training needs for nursing staff for certification requirements. Cost: $35 million TOTAL: $700 million. Address the following: List the expense name and amount you are keeping. Include the final budget of allocated expenses with this list. List the expense name and amount you are not keeping. Include the total dollar amount you are cutting from the budget with this list. Explain your rationale as to the expenses you are keeping in the budget and the expenses you determined should be cut. Explain the ethical considerations behind your decisions.
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