As a new incoming CEO for a 100-bed community hospital located in a metropolitan area, you have learned of a situation that is causing a morale issue within your nursing department. The situation is such that will necessitate action and eventual resolution.

Five (5) cooks in the food service department with 20+ years of service have been elevated in their hourly compensation to have a rate higher than registered nurses. Please respond to the following questions in NO more than two (2) pages double-spaced:

1. How does this compensation issue happen?

2. What are the options available to correct this inequity?

3. What option would you choose and why?

4. What needs to happen to prevent this situation from repeating itself?

5. Would your response differ based on the hospital being a for-profit vs. non-profit?