Case Study: Edgewood Lake Hospital - Leadership in a Rural Healthcare Facility During
Challenging Economic Times
[NAME]
[DATE]

Case Study: Edgewood Lake Hospital - Leadership in a Rural Healthcare Facility During
Challenging Economic Times
Edgewood Lake Hospital (ELH) which opened in 1945, is a 30-bed, independent, not-for-profit hospital located in rural northern California. It provides inpatient and outpatient services to the close-knit community that resides within the forested and lakeside town the facility is nestled in. Although it is known for its great track record for quality and is held in high regard by the surrounding community, it has steadily experienced financial losses from 2006 through 2009. These losses can be
Increasing demands for quality and compliance while funding is steadily declining will lead to a growing gap in healthcare costs and affordability. The Medicare program is increasing its quality and compliance demands putting rural hospitals at a disadvantage to their inner-city counterparts. Reason being that rural hospitals have fewer coders and internal auditors to stay abreast of changing regulations which results in increases in fines and denied claims.
Some demographics of Edgewood County are also a threat to the overall welfare of ELH. The following table was created from figures provided within the case study:
Table 1
Income and Median Age: Edgewood County versus National Average | Median Household | Median Age | | Income | (Years) | Edgewood County | $ 44,238.00 | 40.8 | National Average | $ 59,948.00 | 33.3 |

Table 1 shows that Edgewood County’s median household income is 26.2% less than the national average median income. This not only provides the population of Edgewood with less disposable income but also results in ELH having a smaller revenue pool than the national average. Another notable difference is that Edgewood County’s median age is 22.5% higher than the national average median age. This will at some point mean a higher number of elderly patients, who if subsidized by