International Relations Negotiation Role-Play: Negotiating Budget Cuts at Newtowne Hospital

Dr. Van Hagen, a distinguished heart surgeon, will soon join the staff at Newtowne Hospital, a 750 bed teaching institution. Although some staff members are elated and perceive the arrival of the doctor as an indication of the hospital’s coming-of-age, other staff members are in shock. Newtowne is already facing financial difficulties, including the fact that the annual wage increase for staff has not kept up with the cost-of-living. Now that the hospital has promised financial support to Dr. Van Hagen and his special staff, and will also fund his new equipment, Newtowne is going to have to cut $3.5 million from the rest of its budget. John Demars, the Chief Operating Officer, has met privately with five people who will serve as a budget advisory committee. The five members: the Chief of the Medical staff, Vice-President of Nursing, Chief Financial officer, Head of the Nurses Union, and president of the Hospital Workers Association all were a bit angry and worried about suggested cuts in their departmental budgets. Demars has asked the Advisory Committee to try to reach a consensus on the budget cuts. If no agreement is reached, the Chief Financial Officer will submit his own recommendation to the hospital Board of Directors.