Essay Example on Freeman Health System









Freeman Health System HC 6225 Health Systems Strategic Analysis January 14 2018 Freeman Health System is a large rural medical non for profit health system located in Joplin Missouri It consists of Freeman Hospital West Freeman Hospital East Freeman Neosho Hospital the Ozark Center for behavioral health services two urgent care clinics and dozens of physician clinics and specialty services With more than 300 physicians on staff Freeman Health System provides a multitude of services including heart and vascular care cancer treatments neurology and neurosurgery orthopedics women's services and children's services Freeman Health System is a premier healthcare institution in Southwest Missouri and the Four State Area Financial Performance When evaluating Freeman Health System for the purpose of generating an internal audit information was based on financial statements from 2013 and information provided by nonprofits findthecompany com The financial statement provided for 2013 will be provided at the end of the document Liquidity Current ratio 2 66 per group median 2 44 The metric is the ability to meet short term obligations The hospital s ratio being well above 1 indicates that it has significant financial liquidity and debt paying capacity Days cash on hand 24 per group median 27 

This is an indicator of how long the organization could go on paying its outstanding debts if cash receipts stopped completely Freeman Health System is very similar to other organizations with this metric Profitability Total functional revenue 497 million Total functional expenses 493 million Profit 3 18 million Total Margin 0 00805 Represents profits from all sources Freeman Health System is a nonprofit organization and therefore cannot distribute the extra income to shareholders Profitability may not necessarily be a strong indicator of performance Freeman Health System does have excess of revenue over expenses to safeguard against unexpected drop in revenue From 2009 2013 the system has shown a steady increase in program service revenue Nevertheless Freeman Health System proves to have strong liquidity and a marginal profitability Strategic Resources Strategic resources are tangible or intangible possessions that are owned by the business and contribute towards its core competencies They are the building blocks towards building a competitive advantage within the marketplace

 Some of the tangible resources Freeman Health System possesses include cash on hand valuing 6 79 million and a credit rating that was recently raised to A in 2016 by the S P due to solid financial performance In addition the system owns a reported 148 million in land buildings and equipment Its location in Southwest Missouri along the Four State Area provides a steady large influx of patients requiring extensive medical care due to a large incidence of obesity diabetes and other chronic diseases The location also provides a relatively high volume of Medicare inpatients for multiple disease treatments and procedures Freeman Health System also provides intangible resources such as a highly skilled staff and a favorable reputation The system employs around 4 500 employees including specialized physicians mid level providers and nurses Their individual skills experience and organizational knowledge contribute as a strategic resource for the system Also Freeman Health System has the reputation for being the top hospital in the region It is one of only two level 2 trauma centers within a 70 mile radius and accepts many of the referrals from outlying facilities Core Competencies 

The core competencies are the defining advantages or capabilities that distinguish an enterprise from its competitors They are the product of a combination of resources The following core competencies were obtained from U S News and World Report s High Performing Hospitals 2017 U S New and World Report gave Freeman Health System a high performance rating in two adult procedures conditions and positive ratings in various others Colon cancer surgery Number of patients very high Relative volume of Medicare inpatients age 65 and over that had this procedure or condition in 2011 15 Higher volume is associated with better outcomes COPD Survival above average Relative survival 30 days after undergoing this procedure compared to other hospitals treating similar patients Number of patients very high Relative volume of Medicare inpatients age 65 and over that had this procedure or condition in 2011 15 Higher volume is associated with better outcomes Enabling discharge to home very high How often patients can go directly home from the hospital rather than being discharged to another facility Knee and hip replacement Preventing infections after knee replacement excellent How well hospital prevents surgical infections in knee replacement patients

 Preventing readmissions after hip replacement excellent How well hospital keeps patients who had hip replacement from being readmitted in the first 7 days after discharge These competencies are focal points for Freeman Health System s marketing strategy as they demonstrate areas that a competitive advantage exists Internal Value Chain A value chain specific for Freeman Health System was not publically available but the Hospital Value Chain provided in the text fit appropriately The blue boxes display the primary activities of the organization from attracting patients through marketing and promotion to discharging referrals and follow up These activities occur sequentially so that value for the service is passed on to the patient The boxes above and below the primary activities consist of the support activities These support activities include various procedures and departments required to maintain the flow of the primary activities As previously mentioned the goal is to provide value to the consumer

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