Abstract
Purpose. The purpose of this study was to analyze the relationship between strategic planning and its utility in surviving and advancing the solvency of the California Community Health Care Clinic (CHCCs) system within the managed care environment. Methodology. Descriptive research was used for this study. Through the use of survey questionnaires the full membership consisting of seventy-nine clinic corporations of the California Primary Care Association were queried as to the use of strategic planning. Twenty-four clinic corporations responded to the primary instrument. The primary survey instrument consisted of seven descriptive questions and three inferential questions. Descriptive statistics were calculated for each question as well as parametric and nonparametric tests. Correlation analysis, analyses of variance, cross tabulation and reliability analysis were preformed for selected sets. Findings. (1) CHCCs involved in strategic planning were more likely to be FQHCs completing more of the steps necessary to be successful. These clinics were stronger financially and better prepared to manage changes in the industry. Further these clinics remained in active service for longer periods of time some exceeding twenty years. However, the length of time of service and the corresponding levels of funding had no relevance of clinics sustainability. (2) Health clinics are demonstrating greater interest in managed care environments. This is due in large part to the improved relationships between the health provider (CHCCs) and managed care intermediary (HMOs). This has led to higher levels of interest in the area resulting in increased numbers of contracts. (3) By understanding the potential threats and taking advantage of the new opportunities presented, CHCCs who engaged and utilized the strategic planning process increased their probability of surviving the managed care movement. They not only maintained their financial footing but also increased their solvency through increased creative revenue streams developed along the way. Conclusions and recommendations. Strategic planning done correctly, afforded many of the health clinics the chance of success over the long term. Many clinics completed their vision and mission statements, scans of internal and external environments resulting in improved communications that led to higher levels of plan completions. Strategic planning allowed many clinics to enhance their ability to implement some form of managed care contracting without compromising their financial positions. These activities helped shape a more positive perception of strategic planning that led to substantial improvements in the overall effectiveness of clinical operations. CHCCs who engaged and utilized the strategic planning process increased their probability of surviving the managed care movement while maintaining their financial solvency.