ACHE-North Texas case study report

Evaluation of the ABC health system’s proposed facilities for expansion was conducted on the basis of selected factors. Detailed analyses were done using available financial and volume statistics. A weighted matrix was structured based on the evaluating factors like projected population growth, relative market share, operating margin, net revenue and cost of project. Additionally relevant market forces were also taken into consideration to finally rank these projects for investment. Since a major reason for expansion has been lack of open beds and capacity constraints, we have also included evaluation on the basis of inpatient volume as an important factor. The entire expansion project of ABC is directed towards increasing quality of care and access while maintaining costs. The recommendation in our ranking accounts for all these factors and helps to build ABC health system’s position strategically and financially. Discussions involve transitioning ABC’s expansion strategy from an asset management view to an operational strategy that would be effective in the long run.