Analysis of C.W. Williams Health Center Decision from 1994

The following is an analysis using Strategic Management:

I think that C.W. Williams Health Center should become allies with one or two of the major hospital systems and establish another health center location in the community.

Ms. Marrs, the CEO, is entertaining the idea of building a new health center location in an urban area of North Carolina. She points out the fact that the two year strategic plan first designed in 1995 had not been looked at or talked about since then. The Board and CEO are beginning to develop a new strategic plan. The Board of Directors needs education on strategic management and look at possibility of new members. Part of their strategic plan was to go the people to make it easier for patients to visit C.W. Williams. They are running out of space at C.W. Williams which is inefficient for the doctors since they only have two examination rooms per doctor when ideally they would have three. Patient waiting times are very high. Upon expansion, more space would be available for physicians which will increase recruitment efforts and reduce patient waiting times.

One of the driving forces for change is that they are seeking reimbursement from the government for patients who are uninsured and who do not have Medicare/Medicaid. The poverty level is getting larger, so C.W. Williams would like to give coverage to those who have no money for health care coverage. C.W. Williams was established because Dr. Charles Warren Williams was concerned about the health needs of the poor and wanted to make the world a better place for those less fortunate. A second driving force would be that there has been a shift from “fee-for-service care” to “managed care.” Ms. Marrs states that another driving force of this decision is the need for upgrading technology. It is essential that the board members and Ms. Marrs hire a new CFO and COO before the purchase of a new facility.

Creating a new community health center would be cost effective because through managed care the number of illnesses discovered and treated at earlier stages would save the health center money. Expensive care interventions are often not needed when managed care is available. C.W. Williams staff needs to be educated about managed care in order to continue high quality of care.

We think that since they have no debt on their current building, that the purchase of the new building would be suffice. There are many opportunities when building a new facility including a number of universities in the Charlotte area that could bring in many insured college patients. Also located in the area are many middle-class minority patients as well as Medicaid beneficiaries which would add to the insured population. The staff at C.W. Medical has a high reputation for customer satisfaction and we think this would translate to high quality care at the new facility. However, when building this new facility, they should hire a Medicaid eligibility specialist who is also aware of state assistance programs for those patients in need of medical assistance.

One reason why the hospital should become allies with a few surrounding hospitals is due to the fact that C.W. Williams has been sending a great number of patients who are in need of hospitalization to these other hospitals anyway. Forming alliances would also broaden the range of services available to patients that come to C.W. Williams. C.W. Williams could act as an initial patient base for their allied hospitals.

Critical success factors for C.W. Williams would include: Patient’s satisfaction and good reputation with community, primary care provider with walk-in component, resources for disabled patients, culturally sensitive staff, large patient base, and excellent quality of care. In order to stay competitive, they have to expand their patient base like the dominant health care systems plan to in the area.

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About Brittany Hartwell

Brittany is currently a student at Wichita State University in the Health Administration Program. This is her last year before she ventures out into the eventful healthcare world. This blog will primarily show the latest healthcare topics of our beautiful and ever-changing nation.
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