mgt6203.e1
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IHCCaseandQuestions-20210703.zipMGT6203-IHC Case Questions-REVISED Spring21ST.docx
Copyrighted© – Dr. Steve Tidwell – February 1, 2021
MGT 6203.e1 – IHC Case
Case Questions.
Adhere to APA format
Use at least one outside source when answering each question
There is no page number. Just be thorough in your assessment
1) Based on the case, consider the Strengths, Weaknesses, Opportunities, and Threats of the organization. It is very important to remember that without a thoroughly SWOT analysis and a thorough IFE and EFE, the strategy cannot be an effective tool. Therefore, be as thorough as possible. Be sure to distinguish between internal and external. Identify all of these Strengths, Weaknesses, Opportunities. Be as thorough as possible. (Use bullet points to identify each and provide a brief explanation of how they are strengths, weaknesses, opportunities, and threats). Use this format:
Strengths
*
*
Weakness
*
*
2) From the SWOT analysis, create and Internal Factor Evaluation (IFE) and an External Factor Evaluation (EFE). Upon completing both of these evaluations, explain the total weighted score and if the organization is doing well or needs to improve.
3) Based on the case and the data provided, what should be the organization’s strategy as for competing? Who should be their target market? What means of marketing would you use to attract your target market? Validate your comments.
4) Consider the organizations, mission and vision statement. Are they appropriate, or should they be revised? If they should be revised, revise them. Remember to identify within the mission statement the nine components of a mission statement. Use this format
Mission Statement Format – Example
When assessing the current mission statement, identify the nine components within the current mission statement. If you think it needs to be revised to include all nine, revised it. Looks at the example below, on how to identify the nine components within a mission statement. Keep in mind, this is an example and all nine are not identified. It is an example only.
“At ABC International, we focus on our valued customers (1) and the communities we serve to not only produce a quality product (2), but to maintain a spotless reputation (8).
1. Customers
1. Products or services
1. Markets
1. Technology
1. Concern for survival, growth, and profitability
1. Philosophy
1. Self-concept
1. Concern for public image
1. Concern for employees
Mission
*
Vision
*
5) Let’s say for argument sake that the following is the organizations financial statements. Calculate the ROA, ROE, and Current Ratio. Based on this information. What does this tell you about the organization financials and how they are using their assets and equity? Use this format.
ROA
Show calculations and provide an explanation
ROE
Show calculations and provide an explanation
Current Ratio
Show calculations and provide an explanation
MGT6203.e1CaseStudy HealthCare-RevisedSpring2021ST.docx
Copyrighted© – Dr. Steve Tidwell – February 1, 2021
Background
John and Katie Hamilton own a prosperous home health business called Innovative HealthCare Inc. (IHC). IHC is a home health business with 205 employees. John is very knowledgeable in the world of business as he holds an MBA in Management. Katie has earned a B.S. (Bachelor’s Degree) in Nursing and an M.S. (Master’s degree) in both Occupational (OTR) and Physical Therapy (PT). They have been in existence for 24 years
They specialize in physical therapy, occupational therapy, speech therapy, and various nursing services. They are headquartered in Dallas, Texas, have annual revenues of $39M, and have several stockholders. Their current market is the elderly and disabled and they have been successful with this market in Dallas and Ft. Worth. In fact, many consider the organization to be “the premier organization” when it comes to caring for the elderly and disabled, and when it comes to rehabilitation. The organization has called you in as a consultant to assess the organization’s business to see if they are as efficient as they can be and if there needs to be some corrections made with the business. They need you to provide guidance. Here is some information data that needs to be considered for the assessment.
Current Mission:
“To provide a quality standard of living for patients of all ages. To be the organization that is the first choice of patients in times of health care. Our company is founded upon principles of quality care. We use the latest technology for our patients in serving the communities we serve. The driving force of our organization is our shareholders that are as dedicated to quality care as our employees.
Current Vision:
“To be the primary choice in healthcare and rehabilitation”
Current factors to consider
The organization has grown in employees over the last twenty-two years at an impressive rate, not to mention their customer base. This is due in part to their high quality of work and of course, the booming economy in Dallas and Ft. Worth. Not only has Dallas and Ft. Worth created a good income for them, but within the last year, the organization have been getting a huge amount of calls from areas that are about 30 miles outside of both Dallas and Ft. Worth for care. They are wondering if they need to consider branching out their services to these other locations, but they also know that would be additional expense and costs.
IHC has a strong culture that focuses on the employee and their well-being. The organization has really made a name for themselves in the Dallas area. On numerous occasions, they were showcased as the Company of the Month, and four times, they have won the Organization of the Year. Over the last twenty-two years, they have a retention rate of 94.2% annually. Employees will tell you this is due to organizations economic stability and wonderful reputation. Several years ago, IHC had contemplated branching out to Arlington, Frisco, and Plano, but just never did it. In the Dallas and Ft. Worth service areas, they are adding new employees every month due to their growth. The new employees don’t get a great deal of training which has caused some issues with proper care. The organization feels that training is not necessary because the people they are hiring are very good workers that came highly recommended, and IHC feels they will learn as they go.
In addition to a multitude of office workers, the organization currently has ten OTRs (Registered Occupational Therapist), sixty two COTAs (Certified Occupational Therapy Assistants), eleven PTs (Physical Therapy), sixty two PTAs (Physical Therapy Assistants), thirty two RNs (Registered Nurses) and sixty two LVNs (Licensed Vocational Nurse). The state requires that the COTAs work directly under the supervision of an OTR and the PTAs work under the direct supervisor of a PT. With this said, the COTAs and PTAs are well within the regulatory guidelines to work on their own as long as the OTR and PTAs in charge, see the patients every twelfth visit, which they do. As a result of this regulation that allows the assistants to see the patients, the assistants have just about the same liberties as the OTRs and PTs as for as dealing with patients. This regulation alone saves the organization an incredible amount of money because if the regulation was written to where the OTRs and PTs had to see the patients every visit, the organization would not be able to see as many patients as they do which would reduce the profits substantially.
The Affordable Care Act (ACA) has created a great deal of issues for all medical professions. In fact, many of those in the home health field are strongly considering leaving the profession due to numerous financial cuts the government has made to this medical field. Although IHC has not yet experienced this problem, other competitors have. Furthermore, many schools are reporting their enrollment numbers are down due to the concern the ACA has created. Morale remains high even though these concerns are lingering. Within the last two months, the organization has hired about ten new COTAs and PTAs due to the growth of the organization. Although the new employees are qualified and excellent workers, they lack the experience.
In Dallas, the organization has a brick and mortar location, but due to technology (texting and email), a large percent of the employees receives their work orders by way of computer or cell phone and thus, come into the office only once a week. This has increased the number of patients the medical personnel can see by two patients per day.
As with many industries, the health care profession is full of competitors and IHC is no exception. Care-For-All Inc has a large percentage of market share. In fact, IHC (15.2%) ranks second regarding market share in the Dallas and Ft. Worth area behind and Care-For-All Inc (17.2%). Based on their market share in Dallas and Ft. Worth, they have often some consultants claim if they would initiate services in the surrounding area of Dallas and Ft. Worth, their reputation and name recognition will be instantly recognized which automatically provides notoriety.
In the Dallas and Ft. Worth areas, there have been several claims filed against IHC due to patients claiming they were not cared for properly and that the caretaker caused them some unnecessary pain. This is an area that they are currently addressing through training. In addition, there have been a couple of male and female employees make mention that they have been made to feel uncomfortable within the workplace due to what seems to be sexual harassment and what some claim to be bullying. Again, training is in place to address this issue as well. Thanks to their growth and prosperity, IHC has been able to buy the latest and greatest in technology that helps the organization remain competitive in the medical world. Although the brick and mortar structure are not where the majority of their business comes from, there are still a few patients that receive treatment at that facility, and some of the door entrances and door latches are not in compliant with the Americans Disabilities Act (ADA). Even though their finances seem to be very good, these items continue to go unrepaired.
IHC has a reputation of taking care of their employees. The owners take great pride in knowing their employees are doing well and enjoying what they do. IHC also knows it takes a younger person to do the job that is required. Within the last year, the organization did not hire four female nurses (ages 52, 54, 55, and 56 years old) because they did not think she could walk upstairs at apartment complexes to see patients.
IHC has provide you with a partial list of their finances. Although they have confidence in you regarding their privacy, they wanted to limit their information to just a few categories they felt were important, and to prevent information overload. Here are the accounts and figures.
Income Statement
Revenue
Patients Care $26,500,000
Governmental Contract Income $12,500,000
Total Revenues $39,000,000
Expenses
Employee Salaries $14,300,000
Employee Benefits $ 5,420,000
Rent Expenses $ 130,000
Utilities $ 65,000
Equipment $ 160,000
Maintenance and Repair $ 85,000
Supplies $ 1,500,000
Taxes $ 4,400,000
Total expenses $26,060,000
Net Income $12,940,000
Balance Sheet
Assets
Current Assets
Cash $ 3,900,000
Accounts Receivable $ 1,100,000
Inventory $ 1,500,000
Investments $ 3.100,000
Total Current Assets $ 9,600,000
Property and Equipment
Equipment $ 1,900,000
Total Assets $ 11,500,000
Current Liabilities and Stockholder Equity
Current Liabilities
Accounts Payable $ 2,000,000
Notes Payable $ 1,200,000
Accrued Expenses $ 1,300,000
Long Term-Debt $ 2,000,000
Total Current Liabilities $ 6,500,000
Stockholder’s Equity
Common Stock $ 1,650,000
Treasury Stock $ 3,350,000
Total Stockholder’s Equity $ 5,000,000
Total Liabilities and Stockholder’s $11,500,000
Equity
Source of Data
https://www.census.gov/quickfacts/fact/table/dallascitytexas/PST045219
https://www.bls.gov/regions/southwest/summary/blssummary_dallasfortworth.pdf
https://www.census.gov/quickfacts/fact/table/fortworthcitytexas/POP060210
