During the period of 2001 to 2004, both HMA patient revenue and HMAs earnings per share increased by approximately 70 percent. However, during this same period, RRMC experienced a significant downturn in patient volume in several key areas. Open heart surgery, cardiac catheterization, and outpatient visits were all down significantly. In addition, the hospital was forced to close its Womens Pavilion in 2003 and no longer operates an obstetrics department. Adding to this low rate of growth is the declining population in the area. Etowah County is 103,000 people, the same population it had in 1980, while Gadsdens population has steadily declined by 50 percent since 1960 and today has fewer than 40,000 people. RRMC executive director Matt Hayes faces significant challenges in the next few years, as he tries to maximize his resources and find areas for growth. This paper will analyze RRMCs market position and make recommendations for Matt Hayes and RRMC to help guide them into an uncertain future.
The general operating environment that RRMC is in is very competitive both locally and regionally. Several large urban areas are a short drive from Gadsden and they have numerous health care facilities available with state of the art care. These include Atlanta Georgia, Chattanooga Tennessee, Birmingham Alabama, and Huntsville Alabama. It has been estimated that Birmingham alone draws as much as 25 percent of the business out of the Gadsden area. The patient revenue lost due to the combined out migration could be responsible for as much as half of RRMCs potential business. Locally, RRMC competes with Gadsden Regional Medical Center, with 248 beds, and to a lesser extent Mountain View Hospital, which specializes in addiction and psychiatric services. In addition to the competitive market, the factor of poverty also plays a significant role in the management of RRMC. Eighty percent of RRMCs patients