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AP is an incorporated clinic offering medical services run by 10 physicians serving as the Board of Directors. Each physician is also an employee of

AP is an incorporated clinic offering medical services run by 10 physicians serving as the Board of Directors. Each physician is also an employee of the corporation. The Board has hired a Chief Executive Officer (CEO) to run the daily operations. The CEO has in addition to a Chief Financial Officer (CFO) and an attorney, two other direct reports. One is the Chief Medical Officer, who supervises clinical professional staff and nurses. The other is the Director of Support Services (DSS) who supervises the support and clerical staff.

The clinic has 50 support and clerical staff, where turnover is 30%. Clinical and nursing staff have less than 5% turnover of their 30 staff. Surveys and exit interviews suggest support and clerical staff leave due to low pay and non-support from the DSS.

Physicians, nurses, and clinical staff are between 40 and 70 in age. About half are women. About half are Caucasian. A fourth are Hispanic and a fourth are African American. About 90% of support staff are African-American or Hispanic women.

Metrics used by the CEO include monthly reports on revenue and expenses by physician and the overall organization. Revenue has been steady, but expenses climbing. The CFO says support services consistently overspends budgeted line items. The CFO also explains that a small profit would really be an overall loss if not but for the CFO investing AP liquid assets into high risk, high earnings investments. The concern is that this puts the organization into financial risk. When confronted on excessive expenses, the DSS argues an updated electronic system would solve the problem, but that request has been denied due to lack of capital funding. There are ten other clinics within an hour's drive of this clinic located in a medium size city. The market share among the clinics and AP range between 8-12%.

Patient satisfaction surveys indicate medical treatment by professional staff is rated 90%. Patients rate support services in the 50% range. Two patients filed lawsuits claiming damages when the support staff and clerical staff neglected the patients and overcharged for medical services. Furthermore the patients claim they were treated with disrespect and threatened with retaliation by the DSS when filing grievances in accordance with the AP's own policies and procedures. The DSS argues all this could have been avoided if the CEO would have hired a Human Services Director who could then recruit better quality support staff.

Financial ratios201920182017Industry Standard (2019)

Days in Accounts Receivable63524130

Days Cash on Hand90807075

Current Ratio2.32.02.11.8

Debt Ratio25302030%

Operating Margin15141212%

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