Role of the CEO in Al Sabah Hospital

Kuwait has a population of about 4 million citizens. Half a million of them live within the catchment area on which the Al Sabah Hospital is located. The nation faces many issues related to the dieting habits such as the high consumption of fast foods that cause numerous health complications. The country has been grappling with the problems associated with obesity for more than two decades. It remains a challenge as it has been assessed as the state with the most significant percentage of obese people in its population since 2012 (Verjee and Hume 2012). In order to deal with these problems, practices such as stomach stapling among others have been adopted. Some of them are highly risky and when performed, often lead to various complications that increase the chances of mortality.

The issues described in the paragraph above bring the need for more hospitals with modern equipment as well as well-trained professionals to deliver quality healthcare for the people of Kuwait. The nation has a high demand for medical services related to internal imaging technologies. Endoscopic ultrasound (EUS) technology is a revolutionary method of diagnosis with the capabilities of showing high-resolution pictures of the inner body organs, thus making it easier for medical practitioners to identify abnormalities. Early detection of certain conditions improves the chances of full recovery and effective management for others. Some of the diseases that may be diagnosed using the technology include gallstones, gastric-related conditions, oesophageal and pancreatic cancers among other complications.

Current Situation

At present, Al Sabah conducts endoscopic procedures based on the standard equipment with old technology. The hospital has the upper hand in gastrointestinal endoscopy and colonoscopies. A new standard of endoscopic ultrasound equipment (EUS) was unveiled in the late 1990s and has been used in various countries for the past 15 years (Shami and Kahaleh 2010, p. 34). Its adoption would account for about 10% of the endoscopic procedures performed at any specialised centre. It is a revolutionary technology with the capabilities of diagnosing medical issues related to the stomach and the duodenum based on specific techniques. The adoption of this technology will increase the efficiency of imaging and the number of accurate diagnosis of various conditions such as cancers and biliary diseases. The transfer procedures take between 2-3 days to complete, which increases the inpatient accommodation fixed at 700 euros per day. This situation does not only make treatment more expensive for the patients, but also raises the risk of contracting other complications such as cholangitis, which has a high mortality rate (88%) according to statistics (Liu and Fan 2001, p. 366).

Need for the New Equipment

The situation evaluated above indicates the need for a new department within the hospital to take care of patients more efficiently without referrals. The investment is, thus, likely to bring huge returns to the hospital and its stakeholders. With the new equipment, the hospital will be able to handle a more substantial number of patients compared to the current figure, most of which are referred to other healthcare institutions. It is estimated that about 6 to 7 patients visit the facility per week in search of services requiring endoscopy. The number is likely to grow to 8-10 per week considering the rising cases of bariatric surgeries and cases of obesity in Qatar (Angrisani et al. 2015, p. 3). Therefore, it is bound to make a sound economic sense concerning the return on investment.

Also, the cost of healthcare for each patient is likely to reduce due to the eliminated charges for additional bed booking to complete the transfer procedures as well as the transportation fees. A local facility at the hospital increases the rate of diagnosis and subsequently prevents the advancement of various conditions that may cause death. Early diagnosis makes it easier for a doctor and patient to chart a formidable recovery or management path that minimises the cost of healthcare, which is one of the founding principles of the hospital. Therefore, this proposal is in agreement with the vision of the hospital, which advocates for a high quality of service for its patients to increase the chances of full recovery.

Corporate Strategy

Direction of the Organization about the Initiative

The evaluation presented in the above section shows that the hospital is a lower cadre in both capacity and size. It has the capability of handling a limited number of patients with common illnesses. However, the cases of diabetes and obesity have troubled the country for long enough, and it is estimated that about 42% of the country’s population is overweight and leading an unhealthy life with regards to diet and exercise (Jacobs 2014). The hospital is charged with the provision of healthcare services for the community around it, which includes the regions in its locality as well as the country. Al Sabah Hospital has the potential of serving the whole nation with the addition of more equipment and departments. The inclusion of an endoscopy procedure centre is bound to raise the value of care provided for the patients who visit the facility. This initiative advances the vision, mission, and objectives of the hospital in Al Sabah.

The Role of the CEO

The CEO is the leader of the hospital workforce and is responsible for all programs that are conducted at the medical centre in a bid to provide excellent service to the citizens of Kuwait. In being the most significant ambassador of the facility, the CEO is bound to deliver on expectations from the workforce, the community, and the government of Kuwait through the Ministry of Health. An endorsement of the initiative from him or her will go a long way in ensuring that it gets the right endorsement from investors, the board of governors, and the community.

Analysis of the Problem

The Al Sabah Hospital is one of the largest hospitals in Kuwait. Many people come to the infirmary expecting to get all services without any referrals. However, some of the conditions require endoscopy for diagnosis. The hospital already records a frequency of six to seven visits that need the services of internal body organ monitoring. However, due to the lack of a department that deals with this form of the laboratory, they are sent to other medical centres, with some of them being referred to medical facilities outside the country. The Al Sabah Hospital has the capacity of developing a world-class endoscopy centre with capabilities, which will, in turn, widen the array of opportunities for further expansion of the medical facility.

Factors such as equipment and staff are vital to achieving the goal of establishing a new department. In this case, the scanning equipment and trained nurses and operators will be required. The hospital management will also have to set aside a distinct physical space that would host the unit. The whole project calls for budget allocation for its successful completion.

Impact Analysis

Community

The purpose of the development of a world-class healthcare centre is to provide a high quality of care for the community. The people set to benefit the most from this project are those who live within the geographical region shared with the Al Sabah Hospital. The proximity translates into convenience and cost reduction.

The rate of mortality is a significant factor to consider in the evaluation of healthcare services. Many of the conditions related to chronic diseases have a heightened risk of advancing and leading to death when left unmonitored by qualified professionals. Access to a well-equipped medical facility will increase the chances of early diagnosis, management, and treatment of these conditions. The project will reduce the frequency of complications arising from late medical attention, which will lower the mortality rates in the region.

Brand Image of the Hospital

The lifestyle that many of the people of Kuwait have adopted expose them to various conditions such as obesity, diseases that affect the stomach and the duodenum and other parts of the alimentary canal (Anon. 2018). Cancers are the part of the list of complications that may attack any part of the body. Bariatric surgeries have also become rampant in the country as people struggle to control their body weights. This procedure is risky and may result in numerous health post-surgery problems, which expose a patient to strains of cancer and biliary diseases. Many of the hospitals in Kuwait are only able to conduct diagnostics using the standard endoscopy, which does not work efficiently to reveal the nature of or progression of certain diseases. The establishment of the Endoscopic Ultrasound Imaging Services (EUS) at Al Sabah is likely to introduce a revolutionary approach towards medical healthcare within the region. It is a relatively new technology that is yet to be adopted in various parts of the world, having been in existence for about fifteen years. With the establishment of a related department, it will become easier to resolve the different health problems that arise as a result of the issues related to the internal organs of the body. The vision of the hospital would be fulfilled in treating an increased percentage of patients who visit the facility incrementally

Investors

The investors are the primary drivers of the project, without whom it cannot take off. They serve a crucial function with regards to funding and the provision of advice and other benefits in kind. The primary value proposition for investors is the return on investment. The success of the initiative is bound to ride on the image of the Al Sabah Hospital, which is an established and trusted medical facility in Kuwait. The introduction of the endoscopy department is bound to attract patients from far and wide, thus increasing the revenue margins of the hospital. The resultant effect is that the return on investment, whether in stocks or otherwise, is likely to rise by a considerable margin, thus benefitting the funders of the project.

Competitors

Hospitals that offer services in endoscopic imaging include the New Mowasat Hospital, Dar Al Shifa Hospital, and other major medical facilities within Kuwait. The need for Al Sabah Hospital to develop its EUS Centre is driven by the number of cases of medical complications that need endoscopy within a week. The rise of these conditions creates the necessity of more diagnosis facilities to increase the mission of the healthcare fraternity to extend good health to as many people as is possible. Moreover, the new technology is an improved inefficiency of detection of complications. Therefore, from the medical perspective, Al Sabah does not face competition from other hospitals. Instead, in developing an EUS centre, the hospital will be increasing the number of diagnostics and treatment facilities in the country, thus lowering the costs for patients. Despite the existence of other similar services, the frequency of patients who visit the infirmary in a need of endoscopy services is high. Therefore, the prospective department would result in 100% service delivery.

My Initiative

I took the initiative of researching the state of healthcare provision in the country. Many of the findings have been mentioned above, including the fact that the modern endoscopy ultrasound imaging is not available. Instead, many of the hospitals still utilise the legacy equipment that is used for colonoscopy and upper body scans. I am currently training in Endoscopic ultrasound and ERCP at the Tallaght Hospital and will complete my training next year in Liverpool Royal Hospital. I would like to contribute services that I can offer to Al Sabah in operating the endoscopy procedures using the new equipment since I will have the required knowledge to control them.

I believe that the medical profession is a noble career that gives individuals a chance to serve the community. I envision Kuwait with low medical complications arising from untreated treatable conditions. This vision is by that of the hospital as well as Al Sabah Hospital, which is to offer a high quality of medical care for patients. The strategies which are adopted to ensure that it is implemented include the preparation of a proposal to show the feasibility of the project as well as the estimation of the various costs associated with the initial and subsequent budgets. The former relates to a one-time charge while the latter constitutes consumables that need replacement from one time to another.

Outcome: Potential Investment Partners

The government of Kuwait, through the Ministry of Health, can fund the whole project to facilitate the expansion of the Al Sabah Hospital. It is a famous hospital and is, thus, likely to receive more patients from all over the country. Another feasible option would be to conduct a public-private partnership in which the government partly sponsors the initiative with the support of the community and interested entities. The establishment of the Endoscopy Ultrasound Services Centre is the expected outcome. Therefore, anything that ensures its implementation at the lowest cost will be appropriate.

Funding Proposal

Types of Financial Reporting

The decision-making type of financial reporting is appropriate for this kind of report as it uses the budget analysis to determine the expected budgets. The ultimate path of decisions taken is based on the relative pricing of the various products spread across the market. The value proposition is then used to convince the would-be investors that the proposal is viable and worth the investment.

Risks Associated with Funding

This project is ambitious considering that it seeks to introduce a new department in the Al Sabah Hospital. An analysis of the state of health of the people in Kuwait and the number of medical facilities with the ability to cater for their needs indicates a deficit in service delivery. It is a fundamental procedure whose demand will continue being mandatory for some conditions to be diagnosed and treated. Moreover, the project is government-backed, meaning that it could enjoy better stability.

Cost Behaviour

This project contains certain stages that attract either variable or fixed budgets. The following subsections capture the summary of the report based on the attached sheet indicating the analysis of financial options and their cost implications.

Variable Costs

The project consists of the functional materials and other things that are termed as consumables, which need constant replacement. Based on the attached financial estimation record, the total number of consumables that would frequently be required includes balloons and biopsy catheters among other miscellaneous items. Their weekly expenditure is estimated based on the EUS centre serving ten patients per week. The total charge would be €1000 per week in supplies.

Fixed Costs

The fixed costs include those associated with the budget estimations for equipment and training of staff, whose expense will be needed once. The only such item is the endoscopy machine, whose total price is about €120,000 for two sets. Training of four nurses and operating staff will cost €12,000.

Conclusion

The initial budget of the project is estimated based on the first six months of variable running costs and the fixed cost, whose total outcome is €258,000. The initial investment, when compared to the total monthly costs of about €1000, is high. It means that this is the only part that requires financial investment from external parties who would contribute in the form of investment into the prospective medical facility. The initiative is bound to have a more profound impact on the community and other stakeholders in a way that is significant beyond its initial investment and will have huge returns regarding the number of saved lives as well as the financial gains made out of the paid services at the endoscopic ultrasound service centre.

References

Angrisani, L. et al., 2015. Bariatric surgery worldwide 2013. New York, NY: Springer Science and Business Media.

Anon., 2018. Does body weight affect cancer risk?. [Online]

Available at: https://www.cancer.org/cancer/cancer-causes/diet-physical-activity/body-weight-and-cancer-risk/effects.html

[Accessed 3 February 2018].

Jacobs, H., 2014. The 10 fattest countries in the world. [Online]

Available at: https://www.businessinsider.in/The-10-Fattest-Countries-In-The-World/articleshow/45312612.cms

[Accessed 26 November 2018].

Liu, C.-L. and Fan, S.-T., 2001. Acute cholangitis. In: R. G. Holzheimer & J. A. Mannick, eds. Surgical treatment: evidence-based and problem-oriented. Munich: Zuckschwerdt, p. 366.

Shami, V. M. and Kahaleh, M., 2010. Endoscopic ultrasound. Berlin: Springer Science & Business Media.

Verjee, Z. and Hume, T., 2012. Fast-food-loving Kuwaitis fight fat with stomach stapling. [Online]

Available at: http://edition.cnn.com/2012/11/08/world/meast/kuwait-obesity-fast-food/index.html

[Accessed 26 January 2018].