Background:

You are the Chief Executive Officer of Smallville Hospital. Thehospital currently has a 250-bed capacity. Owing to the rapidgrowth of Smallville (a suburb of Bigville), you are anticipating agrowing need for additional hospital bed capacity. Currently,occupancy of hospital beds stands at 85%. You anticipate that nextyear, demand will be 100% of current capacity, that two years fromnow it will be 125% of current capacity, and three years from nowit will be at 140% of current capacity. If growth of the communitycontinues at its current pace, you anticipate that Smallville willcommission the building of a county hospital, so that demand forbeds at Smallville hospital will peak three years from now. Afterthat, demand will be level. You anticipate the need to add a newwing to the hospital. The new wing will accommodate 100 new beds.No new laboratory facilities will need to be built, so the new wingwill basically be nothing more than a dormitory. (Note that overthe past few years, Smallville hospital has been outsourcing itslab work to a laboratory located five miles away in Bigville.)Because of increased patient load, food preparation capacity willneed to be expanded in the current facility. You are very early inthe acquisition stage. Aside from some brief discussions witharchitects and builders, you have not yet investigated carefullywhat it will take to build a new addition to the hospital. At thispoint, you need to gain support from the hospital’s Board ofTrustees to move forward with the acquisition process. If the Boardsupports your decision to build a new wing, then you will need tosolicit bids from architects and builders.

Assignment:

Create an Inititial Capabilites Document (ICD) that will bepresented to the hospital’s Board of Directors. ICD shouldcover:

Functional Area

Required Capability

Concept of Operation

Capability Gap

Operational Environment

Solution Analysis Summary

Final Recommendation

Ultimately, if the Board finds your ICD to be compelling, theywill authorize you to move forward with the acquisition. ICD shouldbe no longer than three pages long, typed single spaced.