St. Vincent Hospital Case

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St. Vincent Hospital embarked on a major shift during their organizational development. Although the institution existed for decades it was financially unstable and quickly losing its status as a reputable healthcare provider. This paper looks at the St. Vincent’s Hospital from the perspective of Simon’s Five Life Stages of Nonprofit Organizations. Adapting the concepts from the Simon book and understanding the current functioning capacity of St. Vincent’s hospital one can identify that the institution was in stage five and headed towards a decline.
St. Vincent Hospital can be categorized as being in the state five of organizational development. Their method of service delivery and offerings were stagnant as they did not change their approach …show more content…
Vincent’s functioning capacity quickly entered the decline and dissolution phase. Although not technically an organizational stage, many institutions find themselves in this category. The hospital's inability to attract new revenue and diversify its’ operating structure led to its imminent downfall. Additionally, the organization lacked innovation and therefore could not compete with competitors. Hence attempts to merge and create a healthcare system fell short.
According to Hortocollis (2010), St Vincent was once a staple in the local community, now the institution was facing extinction. In fact, Sources from New York State Governor, David Patterson office said that the State had to extend an emergency cash flow loan of 6 million dollars to the institution (Hortocollis, 2010). This was a sure sign of St. Vincent’s financial woes, as these funds were needed to help make its payroll and settle other debts.
The financial struggles of St. Vincent Hospital were not the only caveat to its’ decline. The neighborhood where the organization operated was gradually changing, however, the hospital was not adjusting to meet the needs of this new community. St. Vincent’s model of caring for the poor and the homeless did not sit well with the wealthy newcomers as they were choosing hospitals (Hortocollis,
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