In general, the business case for the Centers for Diabetes appears to be positive since the project is closely aligned with the needs of the community and the targets set by the Affordable Care Act (ACA). However, there are potential risks, as outlined in detail in the SWOT analysis, which has to be considered before the final decision is made. This note will detail the risks for the Centers for Diabetes and propose potential ways of mitigating them.
First and foremost, the idea of a community health center that addresses the community health needs is closely aligned with the value-based care and the community focus that are the targets set by ACA. Moreover, the Centers for Disease Control and Prevention and Healthy People 2030 report cites the need to focus on how health issues are managed from a community perspective and not an individual perspective. Hence, there is a threat of other healthcare facilities that receive reimbursements from Medicare and Medicaid in the county choosing to create a similar initiative. This is because diabetes is a common problem in the United States, affecting 10% of the general population and 14% of the Hispanic and African-American community.
The only way to mitigate this risk is to begin marketing and outreach activities as soon as the project is approved and there is funding to support the further stages of operations. In this way, the community will become familiarized with the hospital and the Center, and even if other similar initiatives arise, this Center will already have an established brand image, which can guarantee that it will also have visitors.
The second significant issue identified in the report is the financial statements, since based on the assessments, the reimbursements, revenue, and grant funding will be insufficient to cover the costs of staffing and operations. Hence, there is a need to either add services that can be reimbursed under ACA or obtain an additional source of funding. Alternatively, there can be an option for cutting the costs, for example, having fewer community workers or reducing the expenditures associated with traveling to help ensure that the funds that this Center will have been covering these expenses. However, it is a better option to request additional grant funding as it is vital to make certain that this Center addresses the health education needs of the community in a quality manner. Another alternative to obtain additional funding would be to request help from the hospital, as the community center helps reduce the number of complications and, therefore, expenditures needed to care for the patients with diabetes. Moreover, the hospital can refer its patients to the health center to advocate for their health education and self-care, and in return, support the operations of this facility.
In summary, this note identifies the potential risks that the Center for Diabetes may face. The two main concerns that should be considered before the launch of the Center for Diabetes are the potential threat of other community initiatives addressing the same health disparity. This issue can be resolved through early outreach and marketing. The second problem is the funding issue, as the financial statements make it clear that the revenue and grant will not be enough to cover the operational costs. Hence, the Center has an option of additional services, requesting additional grants, or asking for support from the hospital.