Conflict Resolution at St. Clare Hospital. The St. Clare Hospital was founded in 1988. In the last few years, revenues at St. Clare Hospital have dropped steadily to a point where CEO James Edwards is considering cost control to improve the organization’s bottom line. Mr. Edwards understands that physicians play a critical role in controlling cost, but they do not have a great interest in cooperating with him to sustain the viability of the hospital. Mr. Edwards decides to hire Wendy Jones as the chief operating officer and empowers her to cut costs for the hospital. The first measure taken by Jones is to outsource the interpretation of imaging readings and fire the radiologist, Dr. Harris. By doing so, the hospital would save $160,000 per year. However, after two weeks, the hospital sees 18% inaccuracy rates in their outsourced reading reports. The hospital might face legal liabilities from inaccurate readings. Edwards and Jones want to stay with the plan to control costs, but the physicians are furious and the medical director, Dr. Wiseman, gathers all staff physicians to a call for action.
In a four- to six-page paper (excluding the title and reference pages):