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OPERATIONAL ANALYSIS

Operational Analysis

Name

Institutional Affiliation
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OPERATIONAL ANALYSIS
Part 1: Healthcare Facility and Analysis
Phoenix Allies for Community Health (PACH) is a nonprofit healthcare institution that

focuses on delivering healthcare services to the deprived neighborhoods. The healthcare facility

also boasts of its intentions to improve patient's healthcare outcomes by offering primary care,

mostly for those who do not have insurance and may not afford quality healthcare services

elsewhere. The healthcare facility depends on donations from public members and sponsors who

care about community welfare. Due to the complexity of the healthcare system, there needs to be

the sale of some services; however, the business does not depend on making profits but has to

pay for paid healthcare providers' services (Macedo, Pinho, & Silva, 2016). Moreover, the

donations and sponsorships help improve the ability to survive through any condition, provide

healthcare services and other medical equipment. The healthcare facility also requires qualified

practitioners to assist in quality service delivery. It is hard for most healthcare workers to

volunteer or work for low prices; however, the business can only manage a minimum wage rate.

Based on the study's outcome, the following will describe an interview conducted with a staff

member of the healthcare facility.

Healthcare Staff Member Interviewed

The Interview focused on the operations manager in the healthcare facility who managed

all the employees and finances involving their remunerations and all activities that took place

within the business. Before the Interview, I contacted Mr. Rashid, who was able to oblige my

demands of conducting a live interview despite the current coronavirus pandemic. The manager

is a highly passionate employee of the nonprofit facility who has worked for the business for

more than 35 years and experienced different transitions of employees in and out of business.

The manager is a highly educated and experienced individual, having achieved the doctorate
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OPERATIONAL ANALYSIS
level of education in operations management and worked in a similar role for more than 20

years. The rest of the 15 years working for the healthcare facility played a junior position in the

institution.

The outcome of the Interview

The first question was on the critical operational decisions that have to be considered

while budgeting. The business prioritizes the different business operations, urgency, and whether

the company can operate efficiently without one of the functions. This enables identifying how

to budget for the business's various components based on the available finances. The operations

manager maintains that operations geared towards the satisfaction of the consumers are

prioritized over other activities. Therefore, the business has to prioritize labor costs and medical

equipment before the business's research activities.

The stakeholders destined to oversee operations and activities in the business include the

employees, sponsors of the company, community members who are also the consumers of their

services, and the local authority. However, the active participants in the business operations are

the sponsors, employees, and customers. The sponsors have to ensure their donations are used

soberly and no act of corruption is involved in the business (Zietlow et al., 2018). Furthermore,

the employees must ensure the business activities run daily, the different departments are

empowered, and the services offered are up to standard to the consumer needs. The consumers

ensure they achieve quality services, which must match up to the healthcare facility's standards.

Furthermore, the consumers must be satisfied with the services offered; hence operations within

the business must proceed successfully. The three sets of business stakeholders ensure the

processes are smooth, activities are maintained, and all funds are managed.
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OPERATIONAL ANALYSIS
The finance management aspect is based on collected income from sponsors, community

members, and organizations that seek to improve healthcare service delivery to the

underprivileged community members (Vermeeren et al., 2014). There are period events

conducted for the collection of finance through sponsors based on annual targets. Different

organizations are invited to sign their corporate social responsibility to offer and improve

healthcare delivery in the United States. Despite their economic conditions, the sponsors are

willing to provide service delivery and improvement (Vermeeren et al., 2014). The finance

management is from the budgeted amounts, such that every revenue is accounted for in the

budget, and every activity operates reliably from the annual budget. The healthcare facility has a

finance manager, who ensures every action is accounted for, priorities are set for the business's

operations, and that all accounts are transparent. This ensures the trust developed between the

institution and the sponsors as every account reflects every expense by the institution.

Furthermore, the institution has three different managers who are signatories to the bank to

ensure not a single individual is in charge of the accounting and spending of expense finances

(Vermeeren et al., 2014). This has managed the business to succeed over the years and accounts

for all its expenses from the annual budgets.

PART 2: EMAIL

To: AHS Leadership

RE: FINANCE RESOURCE AND MANAGEMENT IN THE ORGANIZATION

Finance resources are part of the four primary resources in an organization that helps in

its operational benefits. In this case, the analysis was specific on the financial resources that

included income sources, available current assets of the business, and debts owed by lenders.
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OPERATIONAL ANALYSIS
Financial management is critical in every institution to ensure the smooth running of activities,

management of expenses, and proper direction to the institution. This provides the ultimate

demand to concentrate on this type of resource for the institution. The outcome of the

investigation on the financial resources will evaluate the benefits of proper management of the

specific resource in the healthcare institution.

The selection of this resource is due to its benefits when adequately managed in a

business. The choice of financial resources will improve the business's ability to administer

finances for different forms of budgets. Furthermore, the financial resources are used in every

operation level, from the service delivery, purchase of medical equipment, remuneration of

employees, and the income of the business (Spath & Kelly, 2017). The different levels of

operation are all affected since their continued operations are based on the institution's

availability of finances. Additionally, the ability to offer quality services by the business is based

on managing the finances of the business properly.

The four essential resources are all beneficial to the business; however, the company will

improve its management of finances, proper budgeting, and management of other activities by

identifying the best finance resource management. This is a benefit that will be achieved by the

business, making it the essential resource for the continuity of operations of the company.

Therefore, this analysis will enhance the business's financial management, decision-making, and

ability to improve on their future investments.

The decision made in the business will be based on the financial resources, whereby the

availability of finances will accurately enable budgeting of all processes and operations of the

company. Decision-making is critical in an organization; therefore, the business decisions will be

affected by the finance management, whereby proper finance management leads to reliable
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OPERATIONAL ANALYSIS
services by the business (Ginter, Duncan, & Swayne, 2018). As an institution, leveraging the

trade credit will improve the cash flows through cash available within the system to sponsor

different institution activities. This prevents any delays in the business processes due to credit by

other stakeholders of the business.

Moreover, the business can conduct lease financing on some of its assets, enabling it to

save some amounts for other investments. The business valuation should understand the

business's abilities, whether to purchase or conduct lease business activities. This will enable the

small nonprofit organization to use its available finances in working business decisions on its

budgets (Butler & Wilson, 2015). In this case, the business has little ability to purchase property

but should engage in lease business activities. Furthermore, on capital investment, the firm

should not conduct capital investments. It has an unstable income based on sponsors; it is also a

small business, making it hard to invest in significant capital investments.

As a small institution, the project risk analysis will enhance the ability to recognize risks

and provide counter-risk management approaches. This will help the business to manage and

improve on its risk-averse nature for foreseeable risks. This can also include auditing the

business financials and activities. It will help identify the business's weaknesses and strengths,

which will improve the financial management by the nonprofit institution. The post-audit

information will improve the budgeting, forecasting, and strategic direction of the business

expenses.
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References

Butler, R., & Wilson, D. C. (2015). Managing voluntary and nonprofit organizations: Strategy

and structure. Routledge.

Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health care

organizations. John Wiley & Sons.

Macedo, I. M., Pinho, J. C., & Silva, A. M. (2016). Revisiting the link between mission

statements and organizational performance in the nonprofit sector: The mediating effect

of organizational commitment. European Management Journal, 34(1), 36-46.

Pirozzi, M. G., & Ferulano, G. P. (2016). Intellectual capital and performance measurement in

healthcare organizations: an integrated new model. Journal of Intellectual Capital.

Spath, P., & Kelly, D. L. (2017). Applying quality management in healthcare: A systems

approach. Chicago: Health Administration Press.

Vermeeren, B., Steijn, B., Tummers, L., Lankhaar, M., Poerstamper, R. J., & Van Beek, S.

(2014). HRM and its effect on employee, organizational and financial outcomes in health

care organizations. Human resources for health, 12(1), 1-9.

Zietlow, J., Hankin, J. A., Seidner, A., & O'Brien, T. (2018). Financial management for

nonprofit organizations: policies and practices. John Wiley & Sons.