Life Expectancy: Lower for Nursing Homes or Residents?

Abstract

This paper assesses the relevance of organisational change theory and management decision making theory in the nursing home industry and whether these changes are forced upon organisations in this sector due to the current financial climate. It specifically looks at a nursing home which is located on the Wirral Peninsula, Merseyside. This particular nursing home was recently taken over by new owners and therefore a new management team was introduced. Finally the paper attempts to determine whether nursing homes can survive is this current period of financial instability and whether the nursing home industry can cope with the decrease in government funding and the increase in the demand for nursing homes. The findings of this research paper shows communication of change is a big issue in this particular organisation and that this has resulted in changes in morale and stress levels and therefore change has had psychological impacts on the employees. The paper suggests that there is a clear hierarchy when it comes to decision making and that even the manager has limited power when it comes to the final decision and it is the owners that have the final say in the decision making of the organisation. The evidence of this paper suggests that the organisations priority is making the nursing home profitable. The employees, the deputy matron and the manager all were clear in stating this. This therefore suggests that profits come before the interests of the employees and the residents. Evidence however suggests that the owners have little choice but to prioritise profit or face going the same way as many other nursing homes in the local area and closing down. This paper concludes that the nursing homes long term viability is at risk due to the decrease in government funding and therefore the organisation has less income meaning that cutbacks have to be made which effects the quality of the organisations service and this puts extra pressure on the nursing home, starting with the employees and going right the way through the organisation to the owners to be able to continue to meet the required standards that is expected of them. Eventually there will be a breaking point and the organisation will not be able to be profitable and meet the required standard that the regulations stipulate. The task that faces the nursing home industry becomes even more difficult due to the growth in population and the life expectancy of people increasing. So can nursing homes outlive the residents in the long run?