HCM Hospital: Invest to Grow?

The case describes a decision faced by Rafael Hernández, CEO of HCM Group, who has to decide whether to make a case to the board of directors supporting the expansion of the premises of HCM Hospital. If the expansion goes ahead, an actionable plan should be presented, including new activities to be carried out by the hospital. If the plan is not supported or some external factor prevents its deployment, a plan B is needed to rationalize the way space is currently used in the existing facilities. The existence of possible bottlenecks in the facilities may pose a challenge when it comes to assessing the profitability of the services provided and hence formulating the best action plan.