ASOCIACION CHILENA DE SEGURIDAD (ACHS)

This case outlines the history of the Asociación Chilena de Seguridad (ACHS), a non-profit organization dedicated to the prevention, treatment and rehabilitation of work-related accidents and illnesses. ACHS is part of the Chilean system of «workers insurance organizations,» known generically as mutuales. By law these organizations may not be administered directly or indirectly by any for-profit company. At the end of 2003, ACHS administered 7 hospitals, 27 clinics, and 70 medical centers throughout Chile. However, due to efficiency in accident prevention and advancements in medical treatment, hospital infrastructure far exceeded demand. To deal with this problem ACHS is reviewing a possible alliance with one of its competitors. The case focuses on this dilemma, along with the pending succession of the organization’s president for 45 years. The case illustrates the delicate balance between pursuing financial goals and remaining loyal to the organization’s mission. Teaching Purpose: To sharpen strategic analysis skills, examine the importance of balancing financial goals and mission attainment when managing a non-profit organization, and raise awareness regarding the need to plan for leadership succession. Chile, Prevention, Treatment and Rehabilitation of Work-related Accidents and Illnesses, Non-profit Industry (mandated by law), $165 million yearly revenues, 2003-2005, Case, Field and Pub.Mat.