Business Reengineering_en

EAMS

GRANADA, SPAIN

UHWC

GAZA, PALESTINE

Staying Healthy with

the Union of Health Working Committees:

Improving Business Process for Survival

A Case Study

Written by: Emad ABU-SHAABAN, under the supervision of Ms. CELIA DE ANCA

MASTER IN MANAGEMENT DEVELOPMENT PROGRAMME

DECEMBER 1999

ABISTRACT:

The main concern for a non-governmental, non-profit, health institution is sustainability. Sustainability requires a special approach since the costing, pricing, financial control and communication must take the non-profitability feature into account. This case shows how standard financial and management concepts are adapted and applied when a non-profit health institution health institutions face with financial crisis.

One of the financial concept that the case presents is the costing/pricing, a key concept in all institutions and more crucial for non-profit health institution for survival. Relating the price of the service to its costs helps in generating sufficient revenues that covers the costs without losing money and in some instance have an extra funds for cost recovery of the investment cost in order to maintain quality of the service. The second concept, which moves along the first one, is the communication process among the related departments. This case illustrates how the cross-functionality among the financial department, management department, the clinics, and the board contribute to success of preparing a proper price list for the health services provided. Finally, preparing the proper price list is not an objective in itself, since the price list should be used by the clinics when charging the patients for the health services. The process of controlling the clinics when using the price list is the third concept, which the case presents, it highlights the control procedures needed to control the financial activities of the clinics when charging the patients.

The Union of Health Working Committees, UHWC is a Palestinian, non-profit, non-governmental health organization, established in 1985 by community of a volunteer group of medical and paramedical professionals. The UHWC’s main goal is to participate in improving and promoting the health situation in Palestine. From its viewpoint, this may be achieved through offering the primary health care and therapeutic services and health education programs.

In 1997, the UHWC started to suffer from financial problem. This problem reflected in the financial statement as a negative result. Also, the UHWC was unable to payoff its debts and its employee’s salaries. The financial crisis can be referred to three groups of reasons. These are political reasons, financial reasons, and managerial reasons.

The main concepts addressed in the case are cost analysis/pricing, financial control, and communication.

A Word from General Director of UHWC

Our philosophy, since UHWC was established, has seriously and continuously challenged and worked hard to accomplished its main goal and affirms its development philosophy. The UHWC believes in its work and considers it competitive to the governmental one, not just a complementary and subsidiary one.

Dr. Rabah Mohana

General Director

TABLE OF CONTENTS

Abstract

A Word from General Director of UHWC

1. . Background

1.1. Institution History

1.2. Main Activities

1.3. Organization Structure

1.4. Financial Indicators

2. Main Problem to be Solved: Financial Crisis

2.1. Political Reasons

2.2. Financial Reasons

2.3. Managerial Reasons

3. .Improving The Financial Process at UHWC

3.1. Reasons for decision to Improve Business Process

3.2. Mapping The Old Process

3.3. Modeling of The Business Process Improvement

3.4. Mapping the New Business Process

3.5. Implementation at The UHWC

4. Future Outlook

5. Appendices

Appendix I: Financial Statements

Appendix II: Organization Chart

6. . Figures

Figure One: Mapping the Old Process

Figure two: mapping The New Process

End