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Project Management at Arnold Palmer Hospital 
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The equivalent of a new kindergarten class is born every day at Orlando’s Arnold Palmer Hospital. With more than 13,000 births in the mid-2000s in a hospital that was designed 15 years earlier for a capacity of 6,500 births a year, the newborn intensive care unit was stretched to the limit. Moreover, with continuing strong population growth in central Florida, the hospital was often full. It was clear that new facilities were needed. After much analysis,
The vice president of business development, Karl Hodges, wanted a hospital that was designed from the inside out by the people who understood the Guiding Principles, who knew most about the current system, and who were going to use the new system, namely, the doctors and nurses. Hodges and his staff spent 13 months discussing expansion needs with this group, as well as with patients and the community, before developing a proposal for the new facility. An administrative team created 35 user groups, which held over 1,000 planning meetings (lasting from 45 minutes to a whole day). They even created a ‘Supreme Court’ to deal with conflicting views on the multifaceted issues facing the new hospital.
The vice president of business development, Karl Hodges, wanted a hospital that was designed from the inside out by the people who understood the Guiding Principles, who knew most about the current system, and who were going to use the new system, namely, the doctors and nurses. Hodges and his staff spent 13 months discussing expansion needs with this group, as well as with patients and the community, before developing a proposal for the new facility. An administrative team created 35 user groups, which held over 1000 planning meetings (lasting from 45 minutes to a whole day). They even created a “Supreme Court” to deal with conflicting views on the multifaceted issues facing the new hospital.
Funding and regulatory issues added substantial complexity to this major expansion, and Hodges was very concerned that the project stay on time and within budget Tom Hyatt, director of facility development, was given the task of onsite manager of the $103 million project, in addition to overseeing ongoing renovations, expansions, and other projects. The activities in the multiyear project for the new building at Arnold Palmer are shown in Table 3.7.
*This list of activities is abbreviated for purposes of this case study. For simplification, assume each week = .25 months (i.e., 2 weeks = .5 month, 6 weeks = 1.5 months, etc.).
1. Develop the network for planning and construction of the new hospital at Arnold Palmer.
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