Merging of hospitals. The case of Argolida prefecture

Based on the institutional framework (Government's Newspaper Issue: 1681/B'/28-7-2011), we have developed a proposition of merging/consolidation between the General Hospitals of Argos and Nafplion as our interest is the best provision of health services to the citizens at the lowest possible cost. Purpose: Our case study is the rational management of the resources and facilities of the two hospitals in the form of a Corporate Body under Public Law with a single statute and budget and a merging of departments. Material- Methodology: The material used was the data from the two hospitals regarding human and financial resources and facilities. The methodology involved the use of ratings in order to find the best possible combination of the above resources for a more effective use of all the productive factors. Results: According to the hospital's capacity in 2010, the necessary beds for the General Hospital in Argos were 109 and for the General Hospital in Nafplion were 38. The new hospital, with a 10% superaddition, will need 166 beds. The personnel ratings are 0,84 doctors/ bed and 1,34 nurses/ bed. The development of unified outsourcing cleaning, security and cooking services would bring in a financial profit of 250.000€. Unified services of laundry-ironing-sawing, a catering service, provisions etc are within the framework of restructuring the two hospitals. As far as the operational expenses are concerned, a merging of the hospitals can bring in a reduction of expenses by 50%. Moreover, the expansion of the facilities in the General Hospital in Argos and providing for all the patients in the prefecture with kidney disease are a feasible target. Conclusions: With the creation of a Corporate Body under Public Law based in Argos we expect to have: an enhancement in the quality of health services, an improvement in their distribution in terms of space and a reduction of expenses, an immediate performance of the new merged services and a positive impact on tourism. The opportunity cost is such that we are not allowed to ignore the fact that financial and human resources can be used more effectively creating scale economies.

Keywords: Μerging / consolidation, capacity, personnel ratings