Financial Crisis Of A Health Clinic: A Case Study

Abstract

The Northern Indiana Health Clinic (NIHC) is a small community, non-profit health organization located in northern Indiana. Over the last 18 months, local factories have downsized or closed their doors, residents have left the community, and the number of uninsured individuals has continued to escalate. NIHC is not immune to the economic misfortune and closed out last year with its first operating loss in the last three years. The outlook for the coming year looks even more dismal and places NIHC in financial jeopardy.  The CEO has presented a number of recommendations to the board of directors for consideration. The board hired a consulting company to analyze the CEO’s proposal and provide long-term solutions that will turn around the current financial direction without sacrificing patient care.