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Community health centers and clinics are experiencing greater demands on their services as health reform implementation proceeds, often with fewer resources. As their role as key providers of primary care increases, health centers need financial data to assess their current performance and develop strategies for improvement.
Building on prior work in this area, Capital Link conducted a study sponsored by Blue Shield of California Foundation and the California HealthCare Foundation examining California clinic financial trends and highlighting strengths and weaknesses in their overall performance. The purpose of the research was to better understand the critical factors influencing clinic performance to positively influence the development of high performance health centers.
Covering the period from 2008 to 2011, the study updated the previous analysis. The resulting profile shows the consistent growth of these clinics in terms of patient utilization, revenue, and number of sites operated per clinic organization. The data also illustrated the ongoing significance of the Medi-Cal program to clinic operations while demonstrating the critical role clinics play in providing services to the uninsured residents in their communities. At the same time, it is also clear that the majority of clinics continue to operate with very tight margins and with limited cash reserves, with at least 25% of clinics operating from a distressed financial position.
This study further focused on determining which organizational factors most influence clinic financial and operating performance...