A SWOT analysis provides practical insights into internal and external factors affecting the organization. According to Imaji (2019), companies use this information for the mission, vision, and strategic planning and action. This paper will conduct a SWOT analysis for California Correctional Health Care Services (CCHCS) and then develop its mission and vision statements. CCHCS is a correction and rehabilitative center that provides medical services, substance abuse treatment, mental health/psychiatry services, and dental services to inmates in all correctional and rehabilitation centers in California.
CCHCS has adequate infrastructural resources: it has enough housing facilities and can comfortably accommodate patients at full or maximum capacity.
The facility has strong stakeholder relationships, including the government, which can provide funding and financial support to the organization. CCHCS also runs several community programs, including health promotion, community reintegration, and restorative programs, strengthening its relationship with the community.
The organization has a strong reputation, a valuable resource in attracting and retaining key stakeholders.
Weak Financial Capabilities
The government and insurance companies cover most healthcare expenses, while patients cover the rest in co-payments. However, most inmates cannot afford the co-payment fee system, shifting the financial burden to the service provider (CCHCS). Also, charging incarcerated individuals cannot create enough monetary returns to meet the organization’s financial needs. The organization mainly relies on state and federal funding, which may be insufficient.
The organization is struggling with severe workforce shortages and staffing challenges, including recruitment and retention. The organization’s buildings are noisy, lack air conditioning, and most staff work indoors with little natural light. Additionally, overtime is mandated, yet compensation is uncompetitive. Moreover, the offender population’s characteristics can make the job dangerous, a common deterrent for professionals. Without adequate staff, it will be challenging for the organization to achieve its strategic goals.
Poor Health Services/Customer Services
The organization has serious capacity deficiencies regarding its service delivery. The organization’s reported a total of 452 inmate deaths, 204 of which were unexpected in 2018 alone (Imaji, 2019). These deaths were attributed to inadequate emergency response, lack of follow-up on abnormal laboratory/diagnostic reports, ineffective complex care management, erroneous decision-making due to missing critical clinical signs and symptoms, delays in initiating treatment, and physicians not ordering life-sustaining treatment for end-of-life patients (Imaji, 2019). The report recommended improving organizational health outcomes by implementing a system-wide improvement plan to reduce preventable deaths.
Since the Institute of Medicine (IoM) report’s publication, patient safety has become the central focus of the healthcare system. Technology provides numerous opportunities for improving and transforming healthcare. Studies have shown that health technology reduces medical errors, reduces workload, and improves coordination (Alotaibi & Federico, 2017). It reduces workload by automating medical processes such as documentation, drug dispensation, and patient billing. This resource provides an opportunity for CCHCS to reduce the staff workload and improve their service delivery.
Substance use and treatment are becoming a public health priority, especially with the increasing prescription drug overdose cases. This issue presents an opportunity for a new market, given that CCHCS runs a community program on substance use disorders. The organization can provide healthcare services on substance use to community members. Formerly incarcerated individuals they have helped safely reenter the community are also a customer group of interest. The organization can also seek grants or funding for the community programs as an alternative source of revenue stream.
Lack Of Dominant Competition
As mentioned earlier, CCHCS is the primary public institution through which the Californian state provides health services to inmates. This market position offers the company the power to influence and control the market and protect itself against new entrants. The company can also leverage this market position to justify its request for funding to expand its service line.
Rising Healthcare Costs
The U.S healthcare system is one of the most expensive healthcare systems in the world due to its high healthcare costs. According to the Centers for Medicare & Medicaid Services (CMS), these costs will account for 20.1% of the GDP by 2025, partially because of the rising pharmaceutical cost and government regulations and protocols (Branning & Vater, 2016, p. 446). Patients want to minimize out-of-pocket spending, while the government aims to limit taxpayers’ spending as much as possible.
On the other hand, insurance companies are now pushing patients to pay more of their care upfront and demanding high-deductible health plans. CCHCS already has weak financial capability because its customers cannot generate enough cash flows to sustain it. If the healthcare costs keep rising and the government and insurance companies cut on healthcare spending, operating the company will not be economically feasible, leading to closure/bankruptcy.
The coronavirus pandemic has sparked fear of an impending economic recession. The federal government has responded by decreasing interest rates, providing unemployment compensation, and purchasing bonds to boost the economy. Additionally, healthcare spending has shifted to disease prevention initiatives, significantly reducing funding for other essential health services. The economic slowdown also means that the government, the organization’s primary source of income, has other priorities other than healthcare and has less to invest in new ventures. The pandemic also negatively affected individual and household incomes, meaning that consumers have less to spend on healthcare.
Adverse Regulatory Policies
A myriad of government regulations guides the healthcare system. For example, hospital reimbursements are currently tied to patient satisfaction scores. The CMS assesses the quality of healthcare services provided by a healthcare system by conducting a Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS). Patients fill the HCAHPS survey to rate the organization’s healthcare services. This information (performance scores) determines hospital reimbursement; the higher the scores, the higher reimbursement received by hospitals. Given the nature of services described earlier, CHCHS is likely to receive poor rating scores and subsequent reimbursement, further affecting its finances.
CHCHS is a reputable healthcare organization with strong stakeholder support. However, it faces challenges related to staffing, healthcare costs, and inadequate revenue streams to grow financially. Most importantly, the organization’s service delivery model is seriously flawed as characterized by the high death rates. This weakness is strategic because such adverse outcomes can negatively affect the company’s reputation and weaken stakeholder relationships. The key priorities for this organization are to transform the service delivery model to retain its competencies and provide affordable healthcare services. Although healthcare costs are expected to rise, providing affordable healthcare service is one of the primary objectives of the U.S healthcare system. In a patient-centered approach, patients’ needs surpass business needs; hence, their interests will be prioritized over the business.
To provide quality patient-focused care with an unrelenting commitment to service excellence and patient safety.
To be a nationally recognized medical system renowned for service excellence, innovation, and cost-effective health services.
Alotaibi, Y., & Federico, F. (2017). The impact of health information technology on patient safety. Saudi Medical Journal, 38(12), 1173–1180. Web.
Branning, G., & Vater, M. (2016). Healthcare spending: Plenty of blame to go around. American Health & Drug Benefits, 9(8), 445–447. Web.
Imaji, K. (2019). Analysis Of 2018 inmate mortality reviews in the California correctional healthcare system. CCHCS. Web.