Institute on Aging: When Non-Profits Operate Like For-Profits
(10 pages of text)
In 2012, the Institute on Aging, a US non-profit organization that served seniors in San Francisco, appointed a new chief executive officer (CEO). His mission was to salvage the organization, which was close to bankruptcy. His strategy was to consolidate services and pursue geographic expansion. Through these efforts, net income rose steadily and gross revenue increased from US$28.7 million in 2012 to US$45.2 million in 2017. However, not every outcome was positive. Morale among the line staff had suffered, and the senior leadership raised questions about the long-term business model that the organization should adopt. What more could the CEO do to help the Institute on Aging, an organization that straddled the public and private sectors?
This case is designed for graduate courses in management, public policy, and health administration. By engaging with the materials provided, students will learn to
- identify changes that have shaped the senior care market in the United States;
- evaluate the impact of a turnaround strategy implemented at a non-profit organization;
- assess the practical and symbolic differences that distinguish non-profits from for-profits; and
- examine the role of non-profits in the senior care market.
United States, Large, 2017
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