Online Class Assignment

 Proposal Feasibility Study: Proposal Overview


Student Name

HCM-FPX 5310 Assessment 1

Decision-Making in the Healthcare System

Capella University 


Feasibility Study: Proposal for Implementing an Outpatient Drug Rehab Program at General Hospital

This feasibility study presents a proposal for General Hospital to establish an outpatient drug rehab program to address the widespread psychiatric needs and an increasing number of drug abuse cases. Currently, the hospital utilizes 22 out of its 126 beds for psychiatry care, indicating the need for expanded services (Makamson, 2006).

This proposal explores the organizational background of General Hospital, highlighting its historical significance and financial challenges. By introducing an outpatient rehab program, the hospital aims to improve patient care, optimize bed utilization, and enhance its financial sustainability. The feasibility of the proposed program is assessed by analyzing factors such as bed utilization rates, reimbursement models, and existing research on the efficacy of outpatient treatment. The objectives of the program include increasing resources for patients, tailoring therapy options to individual needs, developing relationships with referring organizations, and generating revenue through new patient acquisition and retention. By freeing up inpatient beds from psychiatry, the hospital can allocate them to other services and improve overall patient care.

General Hospital is facing a growing demand for psychiatric services and would benefit greatly from the implementation of an outpatient drug rehab program. With 22 out of the 126 beds currently allocated to psychiatry care, the hospital is experiencing a significant increase in drug abuse cases. To address these challenges, it is essential for General Hospital to undertake strategic changes that not only increase available resources but also ensure the hospital’s long-term sustainability.

Organizational Overview:
Whittaker Memorial Hospital, founded in 1908, emerged as a vital healthcare institution serving the African American community in the early 1900s. Its historical significance and deep-rooted connection to the community make it imperative for General Hospital to preserve its legacy while driving financial turnaround. Despite encountering financial troubles leading to a Chapter 11 filing and subsequent rebranding as General Hospital, the current director, Dr. Bryant, is determined to restore financial stability, preserve the hospital’s historic significance, and establish a sustainable healthcare facility in the East End.

Bed Utilization and Financial Considerations:
General Hospital’s current bed utilization reveals that out of the 126 beds available, only 22 are dedicated to psychiatry care. The utilization rate for these beds has fallen to approximately 20 percent. Concurrently, the hospital charges $650 per day for psychiatric care. Reimbursement for patient services primarily comes from Medicaid (covering 85% of the hospital bill), Medicare (ensuring 33% of patients on Social Security retirement benefits), commercial insurance, and uninsured patients. Medicare and private insurance cover the majority of hospital charges.

Project Details:
The increasing number of patients in General Hospital’s inpatient psychiatric department necessitates the establishment of a step-down outpatient rehab program. By offering comprehensive education and treatment to patients, this program will not only free up inpatient beds for other specialties but also minimize the likelihood of patients relapsing or returning to the hospital due to addiction-related issues. Outpatient rehab allows individuals to practice therapeutic techniques in real-life situations and develop new behaviors while under the care of the rehab program.

Efficacy of Inpatient and Outpatient Treatment:
In the United States, drug overdoses result in approximately 92,000 deaths annually, while alcohol-related deaths account for around 95,000 cases per year.  (Comparing inpatient…, 2022) Both inpatient and outpatient rehab options are available, and studies suggest that both forms of treatment can yield similar benefits. However, it is important to note that these studies may not have included patients who specifically required inpatient treatment. Severe addiction cases might benefit more from inpatient treatment, while outpatient rehab allows individuals to practice learned behaviors in real-life situations and interact with others during their rehabilitation.

Organizational and Patient Needs:
Given the increasing demand for psychiatric rehab services, it is crucial for General Hospital to address the organizational and patient needs effectively. Expanding services to include outpatient rehab would ensure proper care and discharge planning for patients transitioning from intensive inpatient rehab. Furthermore, less severe cases could be admitted directly to outpatient rehab, thus eliminating the unnecessary use of inpatient services. By developing a comprehensive rehab program, General Hospital can establish a strong reputation, attract referrals, and potentially increase its profit margin.

Program Objectives:
The proposed rehab program at General Hospital aims to achieve the following objectives:

  1. Increase resources available for patients in rehab to improve recovery outcomes.
  2. Provide therapy options tailored to individual needs to enhance treatment adherence and success.
  3. Foster better relationships with referring organizations to increase patient flow.
  4. Generate revenue through direct acquisition of new patients for outpatient care and retention of patients through stepdown care from inpatient services.
  5. Optimize bed utilization by freeing up psychiatric beds for other services, improving overall patient care, and maximizing hospital efficiency.


By implementing an outpatient drug rehab program, General Hospital can effectively address the growing psychiatric needs and increasing drug abuse cases. The proposed program aligns with the hospital’s objectives of enhancing patient care, optimizing resource utilization, and achieving financial sustainability. It is essential for General Hospital to adapt and evolve to meet the changing healthcare landscape while preserving its historical significance and serving the community for years to come.



Comparing inpatient & outpatient rehab success rates & statistics. Recovery Centers of  America. (2022, October 10). Retrieved October 29, 2022, from 

Makamson, E. L. (2006). WHITTAKER MEMORIAL HOSPITAL. Journal of the International  Academy for Case Studies, 12(5), 83-92. %2Fdocview%2F216292854%2Fse-2%3Faccountid%3D27965

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