Alameda Health System Case Analysis: Challenges and Strategies

This case analysis examines the Alameda Health System (AHS), focusing on its financial struggles, market competition, and strategic recommendations. The analysis identifies external and internal challenges, including financial losses, rivalry, and the need for updated technologies. The study uses tools like Porter's Five Forces and SWOT analysis to evaluate the system's strengths, weaknesses, opportunities, and threats. Recommendations include adapting financial strategies, seeking government funds, and improving relationships between administration and physicians. The essay concludes by addressing the critical issues and developing alternative solutions for better market completion. Furthermore, the analysis highlights the need for strategic planning, financial management, and enhanced patient care within the healthcare system.

Running head: ALAMEDA HEALTH SYSTEM
ALAMEDA HEALTH SYSTEM
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1ALAMEDA HEALTH SYSTEM
In this case analysis essay a detail insight is provided on the Alameda Health System,
which provides support to various institution that support helpless people. A detail analysis is
performed on this healthcare system focusing on the primary challenge faced by AHS in
converging how public hospital system can evolve and compete within the market with a
large population of people recovering quickly with treatment options that was not existing
previously.
Alameda health system was facing major financial issues and also suffered financial loss
in 2014 as the health care system was incompetent in reducing the capital loan took by the
country of 15 million dollars and was roughly carrying the losses from 1998. Alameda health
system (AHS) had lost a chance to preserve its patients due to absence of large affiliation care
plan, as other state health care exchange system were affiliated from government of
California. Alameda health system (AHS) was facing another major problem of tension or
conflict between the administration and staffs members that will be a threat towards the effort
to transform the accessibility and quality of providing effective care to the patient in AHS.
AHS launched two different community hospitals namely San Leandro Hospital (SLH) and
Alameda Hospital (AH), which were imposing more political pressure or burden on AHS in
order to maintain an effective patient care facility. Hence, in this case analysis the threats
were explicitly identified including external and internal factors. Different operating
evaluation matrix was used for analysing the external forces in operating and general spheres
including industry map and profile stating the condition of AHS by highlighting the financial
condition of the system and porter’s five force model was used for analysing the risk factors
or problems faced by Alameda health system, which includes (Clarke, 2019):
1. Rivalry in the industry- Alameda health system was facing strong rivalry in the
market as other government supported state health system were developing with more
enhanced and extensive care plan that was a big threat for AHS in the market.

2ALAMEDA HEALTH SYSTEM
2. Power of Suppliers- As the system was going through some financial crisis the
marketing head could not take the risk of any further investment leading to a major
drawback in system
3. Power of customers- The system was losing their insured Patients due to lack of
updated and efficient technologies resulting in a major drawback in the competitive
market.
4. Threats of new entrants- The previous CEO had left Alameda health system and
joined a new health system thus leaving AHS in a major threat as he done and
achieved a lot for establishing the Alameda health system to new heights. Hence, it
was very risky to hire a new CEO as there is major doubt whether the person will be
successful or not in achieving the required mark of success.
5. Threat of Substitution- As the system was dealing with major revenue loss or
financial loss any further change in the system will hamper the overall cost of the
system, therefore affecting the overall performance of the system.
Alameda health system should adapt financial strategy to cope with the requirement of
the established system as a standard of practice so that the system can evolve and develop
some better and latest health equipment’s and if the financial strategy does not work then
they must apply for funds from government to expand their health system. Alameda health
system acquired two different community hospitals for increasing the opportunity of
acquiring more competent Facility with lower estimated budget and better renovation for
effective overall improvement of the system, where AHS directly hired specialist physicians
to empower the community of AHS. Hence, this could be a better opportunity for improving
the infrastructure of the system and acquiring more patients with improved health care unit
facility. In order to make it effective they must use different promotion strategies so that more
number of people know about the health system. The system should associate with state

3ALAMEDA HEALTH SYSTEM
government for funds and affiliation to compete in the market and also to develop standard
care of practice. More than 260 community-based specialist physicians were connected with
Alameda hospital setting and 95 physician involved in San Leandro health system. Thus
active improvement in increasing the medical staff was chosen as a major alternative
approach for enhancing the system and if the plan does not work out they should recruit
medical trainees who could assist the specialist and increase the man power force in the
system. AHS used LEAN methods to address the challenges and provide examples to
improve the overall performance of the system by decreasing the waiting list of the patient
under special appointments. SWOT analysis was performed by the new financial officer
David Cox to exhibit the challenges faced by AHS and to determine the prevention strategies
in order to overcome those challenges (Qin et al., 2018). The strength, weakness, opportunity
and threats were clearly identified in the case study as a strategic factor towards success.
Effective recommendations was highlighted to improve the relationship between
administration and physician to increase trust and loyalty, which will in turn help the system
to function efficiently by increasing communication and support among them (Schaff &
Dorfman, 2019). The major area of concern was also highlighted whether to hire CEO who
is externally focused or with greater focus towards internal environment of the system.
Hence, the essay concludes with some major issues faced by the system and developing
alternative to these problems in achieving better completion and position in the market.

4ALAMEDA HEALTH SYSTEM
References:
Clarke, C. (2019). Strategic Planning in Healthcare. In Textbook of Medical Administration
and Leadership (pp. 31-46). Springer, Singapore.
Qin, Y., Zhen, L. I., Gong, B., Wan, H., Tang, K., Yuan, P., & Lianyi, H. E. (2018).
Application status and prospect of health management model of continuous chronic
disease information based on SWOT analysis. Chinese Journal of Practical Nursing,
34(6), 471-476.
Schaff, K., & Dorfman, L. (2019). Local Health Departments Addressing the Social
Determinants of Health: A National Survey on the Foreclosure Crisis. Health equity,
3(1), 30-35.