Financial Crisis of a Community Health Center - Paper Example

Introduction

Health care services has been experiencing financial sabotage due to poor administration and poor management. Financial crisis creates a lousy picture of any health care provider. Since most of the financial crisis can be deduced from poor management and also administration woes and wrangles that hurt the services provided, some healthcare providers have come up with a way to avert financial administration and problems. Some implemented various ways while others are still struggling with the process of preventing a financial crisis. This report incorporates evidence-based strategies and methods that health care providers' can solve their financial problems.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Organization Information

The case report here is about a financial administration of a community-based organization in Louisiana. The organization has come under severe scrutiny since for a couple of years it has found itself in a deep economic problem that either arises from the administration wrangles and misappropriation of funds. Currently, the number of employees in that organization has been dwindling.

A) Size of The Organization

The organization when it started could hold up to nearly 100 employees in various fields of occupation. Currently, it has about 50 employees working permanently while almost 30 employees working on a casual basis. This kind of organization can be termed as a small sized organization (Boon & Wynen 2017)

B) Type of Organization

This organization can be classified as community organization since it offers various community projects like community works. The organizational structures comprise of community members as part of the managing board and also some experienced managers. Community organizations are formed by helping the community to either get better facilities or better services that might lack in that particular community (Harper 2015).

C) Type of Ownership and Control

The kind of ownership of this organization can be termed as a cooperative organization such that the majority of the stakeholders are coming within the community. This organization is controlled by the managing team which manages the activities that are undertaken in the organization (Rahman & Reja, 2015). They formulate the structures and also implement various projects that have been brought forward for implementation.

D) Number of Years in Operation

The community health center has been in operation for almost ten years. Before being a community health facility, it started as an individual owned facility. The facility existed for nearly 5 years before it changed into a community organization.

E) Type and Size of City and Surrounding Area Served

The medical camp is currently in a city that has approximately 2 million people but in a community where there are almost 100,000 people. The facility receives monthly approximately 200,000 people who come from within and beyond the town. Therefore, it serves more than community capacity.

F) Number, Size, and Type of Other Health Facilities, Services, Programs, Or Agencies in the Same Area.

The health facility has many other activities that it undertakes such as integrated service in health facilities through internship programmers and also outreach programmers for its staffs. The services offered in this organization include visiting practitioners who provide different skills and specialized treatments. Such programs come with specialized therapies which help the community where the organization is based.

The Gist of The Problem

Following previous efforts by a different board of directors to resolve the continuous court battles to address the issue of financial problems there has not been any success in resolving the court battles (Arestis ,2016). The financial problem existed for quite some while, and one particular board of directors came and solved the issue, and now the organization is experiencing massive improvements.

Description: The Problem

A) Background

The financial problem of this organization started when the financial statements were not following the proper accounting procedures. The auditor unraveled the hard truth about financial misappropriations and financial gimmick by both the directors and the accountants. Over the years both accountants and directors misappropriated funds meant for various projects and the community welfare. This led to massive stalling of projects and financial strains to the organization.

B) Evolving Complexity of The Situation

The evolving complexity of the situation arose when the new board of directors was named and started working. Their key role was to end the financial surge of the organization and also, to find solutions to come up with ways that could make use of the existing facility and also increase the capacity of the organization.

C) Persons or Groups Involved and Their Roles

The persons involved in this vice as reported by the auditors include some members of the board of directors and the accountants, the procurement officers and the human resource managers (Ulmer, Sellnow, & Seeger, 2017). The role of the board of directors was to pass bills of payments that were deemed to be of greater importance to the organization such as the recurring expenditures of the organization. The accounts were responsible for writing the expenses that were presented by various departments in the organizations.

D) Local or Historical Factors Contributing to The Situation

The fact that the community was privately owned previously, which then changed its ownership to a communal organization. The choosing of a board of directors who were conversant with how the organization was running created a root for the situation to arise. Therefore, the problem grew day in day out (Foster & Magdoff, 2016). Thus, this situation can is termed as a historical situation.

E) Other Appropriate Data Inherent in The Case Problem

Some of the data that were inherent in the case problem included: the new systems installed is upgraded and repaired every time. This led to recurrent expenditures that ran into millions of dollars over time. Also, the use of the facility as a training grounds which lead to the government to channel some resources which also was misappropriated. The method of the procurement process and tendering of supplies that were supplied but in fewer quantities thus the internal data.

Administration /Financial Management Decision

With the new administration team having been nominated and taken office, they decided to implement various ways to curb the problem. They created a new group that foresaw the new the installation of the new systems and its upgrades. The financial management team introduced new ways of monetary collection such as point of sale and a system that oversaw data collection. Letting of some of the employees who had a dedicated time of nearly ten years. They also decided to hire new staff who oversaw different departments and workstation. Introduction of two parallel systems that had to tally in their final financial statements

The Result

A) Length of Time between Attempted Solution

Various directors had different approaches to financial problems that worked but for a short-term period. The length of time that it took for the current location to work is about 18 months which included the trial phase and the integration phase until the current implementation and working implementation. Various solutions have been in play with some failing to take effect due to the implementation phase not coming into play.

B) Length of Time Results of Administrative Decision was Observed

The length that the results came into play since the administrative decision was 18 months now. The decision was reached at a general meeting and implemented immediately. The decision to have the new system installed will run until the financial problem is solved and rectified since this will be a long-term solution.

C) Withstanding the Test of Time

The solution proposed by the team had to experience some test of time due to various persons losing their jobs and also some getting court summons. There was a lengthy court battle that embroiled the organization and multiple directors who were in the limelight after the case was blown out. This prompted some of the people involved to tender their early resignations. The question that followed was how long did the vice go on unnoticed. Though some of the solutions were valid, some were contested since they involved rigorous procedures and also rigorous exercises.

References

Arestis, P. (2016). 1 Financial liberalization, crises and policy implications. Financial Development, Economic Crises and Emerging Market Economies, 12.

Boon, J., & Wynen, J. (2017). On the bureaucracy of bureaucracies: Analysing the size and organization of overhead in public organizations. Public Administration, 95(1), 214-231.

Foster, J. B., & Magdoff, F. (2016). The great financial crisis: Causes and consequences. NYU Press.

Harper, C. (2015). Organizations: Structures, processes and outcomes. Routledge.

Rahman, N. A. A., & Reja, B. A. F. (2015). Ownership structure and bank performance. Journal of Economics, Business and Management, 3(5), 483-488.

Ulmer, R. R., Sellnow, T. L., & Seeger, M. W. (2017). Effective crisis communication: Moving from crisis to opportunity. Sage Publications.