Assignment: Shady Acres Healthcare System

Assignment: Shady Acres Healthcare System

Assignment: Shady Acres Healthcare System

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Shady Acres Healthcare System was initially established in the early 1970s as a not-for-profit entity. Its humble beginnings included two community clinics, a nursing home, and a mobile immunization unit. Total employees numbered 107. Since then, it has grown to have a respectable portfolio which boasts seven community clinics, four skilled nursing facilities (one of which is the largest in the state at 275 beds), two assisted living facilities (both moderate size), a home health care unit, a 120-bed hospice facility, a pharmacy distribution service, and a large laboratory capable of enormous growth (currently running at only 33% capacity). There are 742 total employees today.
Reputation in the community is excellent; however, there have been some recent complaints about the downturn in quality in the community clinics.
Newer health systems in the area have actively recruited some of the staff and have offered them more money and better benefits.
All licenses and accreditation are in good standing.
SAHS has not integrated EHR on the level of its competitors.
Recent employee surveys demonstrate a continued high level of satisfaction.
Current Financial Situation
The community where SAHS operates is not unlike most areas in the contiguous United States. The housing slump and levels of unemployment have increased the numbers of individuals without insurance. Also rising are the numbers of homes being converted to apartments and duplexes. Current housing prices are falling. The process of gentrification (revitalizing communities with new dollars) has slowed significantly in the last five years. In summary, the market has slumped, and trends do not indicate any signs of rapid improvement.
As a result of the downturn, the community clinics have seen a sharp rise in use. The current system of SAHS, which was written in the initial bylaws, allows individuals seen at these clinics to pay on a sliding fee scale. Unfortunately, as a result of this policy, the system has been losing money ($75,000 per month) operating these clinics. Until recently, all four of the skilled nursing facilities have been operating at a profit. The changing case mix has increased the number of individuals on state assistance, and the rates paid recently dropped. The flagship skilled nursing facility, at 275 beds, is still operating at a profit; however, current trends have noted a decrease in net operating income.
The two assisted living facilities continue at a small profit; however, a lack of marketing efforts has made them the best kept secret in the community. Both the home health care and the hospice facility are showing signs of decreased occupancy/census as a result of the lagging economy.
The pharmacy distribution service operates at a respectable 40% net operating income (NOI) and continues profitability trends. The laboratory operates on an as-needed basis only and as such is break-even only.
In all, SAHS remains profitable; however, if current trends continue, the system will be non-profitable in 18 months.


Shady Acre Health Systems Analysis: Introduction
Students will be assigned to work on the Shady Acre Health Systems Analysis (SAHS) project. As this project presents a potential real-world scenario, your approach should be as a professionally contracted group hired to work with this organization.

The board of directors for Shady Acre Health Systems has hired you to 1) identify the current issues, 2) suggest plausible solutions to these issues, and 3) recommend a course of action. See SAHS Overview for more detailed information.

You must proofread your paper. But do not strictly rely on your computer’s spell-checker and grammar-checker; failure to do so indicates a lack of effort on your part and you can expect your grade to suffer accordingly. Papers with numerous misspelled words and grammatical mistakes will be penalized. Read over your paper – in silence and then aloud – before handing it in and make corrections as necessary. Often it is advantageous to have a friend proofread your paper for obvious errors. Handwritten corrections are preferable to uncorrected mistakes.

Use a standard 10 to 12 point (10 to 12 characters per inch) typeface. Smaller or compressed type and papers with small margins or single-spacing are hard to read. It is better to let your essay run over the recommended number of pages than to try to compress it into fewer pages.

Likewise, large type, large margins, large indentations, triple-spacing, increased leading (space between lines), increased kerning (space between letters), and any other such attempts at “padding” to increase the length of a paper are unacceptable, wasteful of trees, and will not fool your professor.

The paper must be neatly formatted, double-spaced with a one-inch margin on the top, bottom, and sides of each page. When submitting hard copy, be sure to use white paper and print out using dark ink. If it is hard to read your essay, it will also be hard to follow your argument.


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