Description of how the strategy will be executed and measured including financing, revenue, and expense. How will you pay for the changes you recommend?

Financial planning is the backbone of the operations at AF because at the end of the day the overhead operational costs such as utilities are the driver of all the services the facility offers. Financial engineering recommends for sustainable planning to ensure the organization maintains its profitability while creating value and improve its effectiveness. The OASIS model. Looking at the facility’s asset base, ever since its establishment in 2005 it has a commendable rank relative to the available departments having been able to successfully cater for all its clients despite their financial situation. On matters expenses which doubles as a measure of service delivery and problem identification, the establishment has a positive net income stream thanks to presence of budgeting. However, considering the company’s operating revenue is more than a million dollars, there is an opportunity for the facility to enhance the net profile base making it significant enough to consequently be viable to produce a new product or improve the efficiency of one of the services already being offered.

As earlier asserted by the previous sections of this case study, improving Arroyo Fresco Community Health Center’s services will be guided by a business plan and the existing income statements for contextual and relevancy purposes. However, making estimates for the said recommendations is hurdled by unavailability of crucial financial figures such as operating margins and cost control. Additionally, the company does not report its comparison to competitors making it difficult to accurately track the company’s business results but this does not underscore the potential to gain additional insight on the prevailing market position and segmentation (Baldrige Performance Excellence Program, 2017). However, there is need for AF to classify reporting its operations according to workforce and patient characteristics improving the focus on actionable response areas while simultaneously identifying high performing areas and their corresponding best practices. This information is critical in alleviation of strategic challenges.

However, AF’s mission to provide healthcare to marginalized tri-county communities remains on course going by its financials that demonstrate a vantage operational expenses, revenues and net profit collections for majority of the time the facility has been operational. AF’s revenue for instance consistently make the facility one of the best performing within its classification in the locality. Additionally, the company’s revenue profile has been on upward trajectory with the same characteristic displaying in the accounts receivable. Consequently, the company’s medical services have improved as the facility continually meets its targets. All the three counties in which the facility offer its services have been on an upward trajectory in terms of service delivery (Baldrige Performance Excellence Program, 2017). However, the company’s modest profile dictates fundraising or crowd sourcing finances suffice as ideal for improving the establishment’s service delivery given its not for profit operation structure. The company also has a modest dental services profile which is an opportunity that could be exploited, the same goes for treatment of chronic diseases.

The above recommended changes will therefore be funded by revenue from well-wishers and government subsidies. Seeing that the shortcomings being addressed above are internal activity based, the changes will also be measured internally. With correct classification of the services offered through segmentation development of focused dental and chronic disease medication, the deliverables will be gauged against the set target and budgetary allocation with reference to individual unit’s net profits and customers treated. This way, the facility will be able to gauge the fiscal performance and service delivery statistics accurately. This information can either be used as a model for future improvements as recommended by ideal financial planning recommendations or additionally improving the specific services. Ultimately, gradual improvement of the facility’s departmental medical functions.

References

Baldrige Performance Excellence Program. 2017. 2017 Baldrige Case Study Feedback Report: Arroyo Fresco Community Health Center. Gaithersburg, MD: U.S. Department of Commerce, National Institute of Standards and Technology. https:// www.nist.gov/baldrige.

Baldrige Performance Excellence Program. 2017. 2017 Baldrige Case Study: Arroyo Fresco Community Health Center. Gaithersburg, MD: U.S. Department of Commerce, National Institute of Standards and Technology. https://www.nist.gov/baldrige