- Teaching Notes
- Supplementary Resources
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.