Strategic Restructuring for Community Clinics: Options and Examples
June 8, 2009
La Piana Consulting
This is archived content; for historical reference only.
Caught between the nationwide economic slowdown and the state budget crisis, California’s community health centers (CHCs) are coping with a severe set of challenges.
Because they rely so heavily on state and federal reimbursements, community health centers are especially vulnerable to the twin blows of a national economic slowdown and a state budget crisis, occurring now. The prospects for survival among California clinics depend upon both their individual ability to compete for resources and their willingness to collaborate with other organizations to shore up reserves and sustain operations.
Strategic restructuring — establishing formal partnerships ranging from administrative consolidation to fully integrated mergers — could provide the answer. This approach, long used in the for-profit sector, is becoming increasingly common among nonprofits, including the creation of consortia to provide technical and management support.
This issue brief explores various types of partnerships now being used by CHCs and regional consortia, including administrative consolidation and merger. It also examines what opportunities strategic restructuring might offer clinics seeking to strengthen their positions now and remain viable in the years to come.
The complete issue brief is available under Document Downloads.