Details

Case

Fatima Memorial Hospital

Bashir A Khan

INDUSTRY : Hospital

AREA : Business Government/International Economy

ORGANIZATION : Fatima Memorial Hospital

LENGTH : 13

LUMS No : 16-033-87-1

PUBLICATION YEAR : 1987

KEYWORDS:

Fatima Memorial,Hospital,Business Government,International Economy,Administrator,Consultants,Medical Supplies

DESCRIPTION:

In January 1987, Dr G.N.Bajwa, Administrator of Fatima Memorial Hospital, in Lahore, Pakistan, was considering the problem of revising and adjusting service charges and fees in the light of new economic conditions. Fatima Memorial was a private non-profit organization which had to be run on a business-like basis in order to operate effectively. The Government had decided to increase the pay scales of its staff in the publicsector hospitals, and personnel at Fatima Memorial would have to be given a corresponding increase in order to retain a staff of good consultants. (Already staff salaries accounted for over 25% of the annual budget which translated into an average monthly expenditure of Rs 2.5 million). How should Fatima Memorial respond to this unforseen rise in costs, as well as the ongoing secular pressures of inflation which meant higher prices for medical supplies and, therefore, higher operating as well as developmental costs.

LEARNING OBJECTIVES:

SUBJECTS COVERED:

Business Government, International Economy