Franklin Health Associates Harvard Case Solution & Analysis

TO: Paul Johnson



SUBJECT:  To discuss the organizational structure and strategies. Creation of new responsibility center and steps required in order to control the management process.

FHA is currently implementing the corporate strategy. The program includes the area wide delivery of comprehensive primary medical care without the discrimination of  fee-for service and free patients, recruitment of only board certified, peer review audit, support of education to its providers, teaching of pre-doctoral and post-doctoral health professional students, research along with demonstration of projects in different areas.

Responsibility center has been established according to their departmental work. A separate marketing responsibility center should be added in R&D as the organization is facing a problem in bringing up awareness and marketing whereas, in FAHP, center should be divided in community action programs, home insulation program, a food stamp distribution and parenting program rather than just social worker programs so, resources should be allocated accordingly. The recommended corporate structure is in Exibit.1.

There are weaknesses in the management control process. The meeting should be held on a weekly or monthly basis. M.D.s belongs to similar age groups and if they retire the organization would face shortfalls, which affect the responsibility center drastically. Different age of M.D s should be hired and rotation of M.D s should be made so that, they may avoid the routine office work and isolation overload of solo practice. Rotation should be made outdoor too for changing their atmosphere hence; they may take more interest in the job without being bored. New marketing strategies should be introduced as they are unable to reach patients and people don’t understand how to use the system properly. Therefore, they should introduce free trainings sessions, pump flats, free visits at home and community gatherings. There is politics in the company, which is a problem so the rotation of every head should be made to avoid the reporting problem and politics. A proper promotion or incentives should be introduced to motivate employees. The major problem that the company is facing is in administration expenses. This should be controlled by making the salary of unprofessional employees’ variable like the physician therefore, the allocation would be made on a fair basis and the company will generate some revenue rather than keep on facing losses. Another problem area is..................

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