Safety net hospitals are the non organizations that are both public and private that have taken the initiative to assist in the provision of the health services to the citizens in the county. Over the years, the organizations have experienced high increase in the number of the centers. With the result of the high number in the country, the centers have experienced a number of challenges that have led to some of them being closed down.
The paper will look at the reason as to why many safety net hospitals were closed down, the effect that the closure had on the customers as well as to the public health and lastly, it will look at the market trend that the hospital administration have to consider in the time of coming up with their strategic plan and how the market trend will be of help to them. Reasons for the Hospitals to Close The safety net hospitals have over years facing some of challenges that have led to some of them to be closed down.
These reasons are such as; liability problem, high cost being encountered at the hospitals and lack of proper management of the hospitals (Changes in Health Care Financing and Organization a RWJF Program, 2008). Liability is the accountability that any of the organization is awarded to attend to. The safety net hospitals have been awarded the accountability for the health and the survival of the patients taken to their hospitals.
As regard to this, the hospitals have feared the risk of being sued by the relatives of the patient that did not manage to survive in the hospital after the death of their college at the hospital (Institute of Medicine, 2007, pp 223). The challenge of the high cost being faced by the hospital has also led to some of the being closed down (Dewan, & Sack, 2008). The hospitals were being required to face the high cost of professional liability insurance for the specialists who were to offer their services on call.
This made the hospitals to face sever financial crisis that forced them to be closed down. The transfer of the patients to the net hospitals made the hospitals to be overpopulated that disabled them to attend to their patients adequately (Engel, & Lin, 2008). This lad to their low performance that in return, they were forced to close due to the poor hygiene standard at the hospital.