Opportunities: Palomar Health System despite its present weaknesses and trends has several opportunities that can strengthen its position in the market, expand market service area (MSA), and increase its financial sustainability. PHS serves Northern San Diego County and farther county locations such as Riverside. The opportunity for expansion within this area has high potential due to the conveniently located ExpressCare Clinics. The ExpressCare clinics provide urgent care and treatment for common medical conditions with no appointment needed (Palomar Health, 2014). The walk-in clinics are strategically located in a 30 mile radius from Escondido to Temecula in local Albertson Grocery and Sav-On Pharmacy stores (Palomar Health, 2014). PHS potentially
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Palomar Health System has the risk of not having adequate diversification called concentration of credit risk, which can be a lack in substantial investments leading to negative outcomes affecting the health system as a whole (Palomar Health Audit, 2014). These outcomes affect every level of an organization ranging from economic to geographic entities. Palomar Health System may be facing a dilemma such as this if it doesn’t reorganize its investments. After analyzing Palomar Health System’s financial statements for the years 2012-2014, there has been an increase in operating expenses at $508,006,000, $616,425,000, and $620,480,000 where these trends stem from increased overhead to overutilization of services (Palomar Health Audit, 2014). The nonoperating expenses have increased to more than $17,000,000 from 2013 to 2014 at $8,545,000 and $25,404,000. Operating activities section displayed a trend in the increase of payments to suppliers from the years 2012-2014 (Palomar Health Audit, 2014). The 2012-2013 audit displays an increase in spending from $267,638 to $291,145, which still increases during the audit year of 2014. The total net assets for the years 2012-2014 displayed a decreasing trend at $1,615,145, $1,643,026, and $1,695,963 respectively (Palomar Health Audit, 2014). The accumulation
Palomar Health System has the risk of not having adequate diversification called concentration of credit risk, which can be a lack in substantial investments leading to negative outcomes affecting the health system as a whole (Palomar Health Audit, 2014). These outcomes affect every level of an organization ranging from economic to geographic entities. Palomar Health System may be facing a dilemma such as this if it doesn’t reorganize its investments. After analyzing Palomar Health System’s financial statements for the years 2012-2014, there has been an increase in operating expenses at $508,006,000, $616,425,000, and $620,480,000 where these trends stem from increased overhead to overutilization of services (Palomar Health Audit, 2014). The nonoperating expenses have increased to more than $17,000,000 from 2013 to 2014 at $8,545,000 and $25,404,000. Operating activities section displayed a trend in the increase of payments to suppliers from the years 2012-2014 (Palomar Health Audit, 2014). The 2012-2013 audit displays an increase in spending from $267,638 to $291,145, which still increases during the audit year of 2014. The total net assets for the years 2012-2014 displayed a decreasing trend at $1,615,145, $1,643,026, and $1,695,963 respectively (Palomar Health Audit, 2014). The accumulation