Mary being the manager is facing a very critical problem, where should the money of the hospital be allotted. As mentioned in the article, there are three major areas, to buy innovations, replace old essential equipment or buy additional essential equipment.
All options are essential for the hospital but she cannot address all of them due to the limited budget at hand adding the budgeting of staff’s salary and other financial liabilities of the hospital.
In order to make a decision, Mary should first weigh all of the possible consequences of each option. All areas are important for the betterment of the patients and of the hospital as a whole. However, there are things that are of great importance. Also, Mary should not only focus on one area and neglect the other. She may replace and add essential equipment at the same time. It is important to evaluate which is needed the most.
For instance, old essential equipments may still be in good working condition and does not need replacement. However, for malfunctioning essential equipment, it would be necessary to prioritize them. The same thing goes for the innovations. Innovations are good but if the old technology is working properly, it should be given less attention due to the limited resources. Once the company has adequate resources, it can invest on innovations but for the time being, what is at hand should suffice.
The second focus should be on adding essential equipment since it is important for a hospital to have all the necessary equipment. Sometimes, the completeness of equipment determines the successfulness of operations and other medical procedures. It will eventually create a better name for the company and bring more and more patients in need of service.
On the other hand, Mary is lucky to have the necessary data needed to make the budgeting. The hospital has records of staff salaries that are included in the budget. She may also ask for the knowledge of the administrators in matters of other liabilities such as syringes etc. Thus, the only necessary thing to consider are the three major issues where the remaining fund will be used.
As mentioned earlier, prioritise should be set in allotting the budget. When it comes to prices of equipment, I believe it would be easily available and so allotting the money would be easier than it seems. Finally, after making the necessary decisions, Mary would still have to consult for the opinions of the senior administrators regarding the budget, detailing the necessity and impact of the plan.