Shriners Hospitals for Children

A large, international benevolent association operating 22 children’s hospitals and four research centres in three countries has been negatively impacted by a number of external factors. The effect of the 2008 global financial crisis on its endowment funds coupled with rising health care costs and flat donations, have resulted in the hospitals running at a loss. To ensure the long-term viability of their not-for-profit hospital system, management feels it must present drastic options to delegates at its annual general meeting, including reconsidering the policy of providing free medical care to children regardless of their ability to pay, shutting down research facilities and closing over a quarter of their hospitals. While management is confident that the quality of care for pediatric patients will not be compromised, all of the options being considered will significantly impact hospital operations and the organization’s culture. For the first time in the 87 years of the organization’s existence, some very difficult options are on the table.

<ul><li>To help students develop an understanding of the challenges inherent in operating a not-for-profit organization and to deal directly with managerial dilemmas, including operational and strategic decisions.</li><li>To understand the issues related to strategy formulation, risk analysis and strategy execution within a health care context.</li><li>To evaluate the choices before senior management that could significantly alter financial systems and the organization’s mission and thus impact staff retention and fundraising.</li><li>Appropriate for MBA and upper-level business introductory courses in health care management, strategy and general management or in a course specializing in not-for-profit management or leadership.</li></ul>

• Governance structure
• not-for profit
• strategy formulation
• staff retention
• United States
• Canada