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Abstract: This case--one in a series of nursing/health care management cases--explores the boom and bust cycle psychiatric hospitals in Houston went through during the 1980s. It follows a single nurse as he gains increased responsibilities, just as the hospital for which he works encounters difficulties holding on to its share of the market. Ultimately, he faces questions as to how to balance the medical needs of patients and the financial needs of an institution for which he cares deeply. The case also details the relationship between one hospital's changing financial picture and key changes in health care regulation passed by the Texas state legislature.
Learning Objective: This case allows students to explore personal ethics issues in a high-stakes business environment, but can also be used to analyze the business and government angle, specifically regulatory issues.