Asian Americans for Community Involvement (AACI): A Strategic Inflection Point

by Brent Copen
29 Jun 2014

This case illustrates how AACI, a non-profit organization that provides health care services to mainly low-income immigrants in San Jose, California, is confronted with the strategic choice of whether to expand its services to a satellite site on the city's east side while an expansion project is currently underway at its central city location. As the tenth largest city in the U.S., San Jose is now 32 percent Asian, with a large portion of that segment being recent immigrants within the last 10 years. AACI's patient case load is expected to increase in the immediate future, due to the continued influx of both Asian and Latino immigrants and the rollout of the Affordable Care Act. Lew and her management team must decide how to best meet this increased demand for social and health services. The case examines whether AACI has the financial reserves to undertake an aggressive multi-site expansion plan, and how the nonprofit should weigh any strategic decision against other fiscal demands, including ongoing maintenance for the office building that it owns, operates and partially rents out to another tenant.

Learning Objectives

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The purposes of the Asian American for Community Involvement (AACI) case are two-fold: 1) to demonstrate how the analysis of financial statements of non-profits differ from for-profit companies under FASB statement 116. 2) to show how non-profit organizations can make use of financial metrics and the 'dual bottom-line matrix' to inform strategic decisions. Under the leadership of Michele Lew, AACI's President and CEO, this case illustrates how this San Jose, California-based non-profit must choose whether to expand geographically with a satellite site while an expansion at its current central city location is already underway. The Affordable Care Act, which will greatly increase the number of patients requiring health care services nationwide through Community Health Care Centers, such as AACI, is the driving force behind the strategic decision.

Details

Pub Date: Jun 29, 2014

Discipline: Accounting

Subjects: Accounting, Health care, Cost benefit analysis, Decision making, Nonprofit organizations, Leadership

Product #: B5813-PDF-ENG

Industry: Health care services

Geography: United States, California

Length: 20 page(s)