DEVELOPING A STRATEGIC APPROACH 9
Developinga Strategic Approach
Astrategic approach is an important tool for every organization. Inthe healthcare sector, the strategic approach enables organizationsto handle changes that occur within their operational environments.The changes may be social, political or legal and greatly influenceset organizational policies. To change the policies and adopt thesechanges, the strategic approach acts as a guide. It assists inclearly outlining the mission and vision of the organization,adaptive strategy, service delivery and approach in meeting theadaptive strategy. The paper develops a strategic approach forSherrill Hospital, which needs to realign its policy with legalchanges.
Missionand Vision Statement
Thestatement outlines the hospital’s purpose for being in operation.It defines its nature and demonstrates Sherrill’s assurance andintention. According to Zuckerman (1994), the vision forms a mentaloutlook of what organizational leaders plan in prospect. The plansare intended at ensuring an organization progresses to grow, while atthe same time meeting external and internal demands, in addition toproviding exceptional healthcare to clients. Actualization of anorganization’s mission and vision statement mandates dedicatedefforts from major stakeholders. In this case, stakeholders includephysicians, nurses, patients, leaders and other practitioners.
Mission:Sherrill Hospital is dedicated to instigate hope through provision ofthe best healthcare services in Los Angeles. In turn, ensuring andimproving the health of patients that seek the hospital’s services.
Vision:Sherrill Hospital intends to be acknowledged as the best healthcareprovider, the most preferred healthcare employer, desired physicianspartner, law compliant hospital, and healthcare provider withup-to-date infrastructure.
Strategicgoals ought to relate to the statements, thus, providing moreguidance towards the achievement of the mission and vision. The goalsrefer to the planned objectives, which the hospital intends toattain. Managers develop and communicate strategic goals for theirorganization. The objective is to depict to subordinate workers thecompany’s mission and vision (Zuckerman, 1994). Strategic goalsought to be attainable and reflective of a realistic evaluation ofthe present and future business surrounding. Specific strategicgoals, which align to the ideals of the mission and vision statement,are:
Healthcare and services quality: to ensure the provision of high quality healthcare and services to all patients in compliance with the Patient Protection and Affordable Care Act, this in turn avoids litigation and increases the number of patients at Sherrill Hospital.
Infrastructure improvement: to facilitate the provision of specialized care and make healthcare service a better experience for patients. Specialized care enhances the reputation of Sherrill Hospital above its competitors.
Permanent growth: to enhance recognition among patients through training and hiring competent staff progressively enhancing the hospital’s market share.
Adaptivestrategies deal with the kind and capacity of operations and spellout the manner through which the hospital will develop, ensureoperations and decline (Zuckerman, 1994). Any changes made in anorganization require strategy, since even lesser alterations have animpact on the healthcare quality and service delivery. The particularadaptive strategy may involve change, an advent service, or furtheradvancement of a current service. Strategy development in healthcaremay be formulated at a regional or national phase. It might include adiverse size of section, or concentrate on a particular issue orhealth factor (Campobasso & Kucharz, 2012). The recommendedadaptive strategy involves development of scope strategies. Itentails service development and penetration, diversification, marketdevelopment and vertical integration.
Servicedevelopment and penetration permits the introduction of adventtechnology in the hospital. It also facilitates the improvement ofavailable infrastructure, to enhance service delivery. Infrastructureimprovement is important for Sherrill Hospital in ensuring it gains acompetitive advantage in providing healthcare. The hospital has beenthe only provider of CT scanning services: thus, has more experiencein providing specialized care. This means that concentration onproviding special care through introducing new infrastructure andimproving available infrastructure will increase the number ofpatients visiting the hospital. In turn, Sherrill develops theirservice and penetrates into specialized healthcare provision.
Diversificationis important, as the hospital needs to widen its horizon. It shouldundertake advent markets, which can assist and avail new growthchances. Notably, the Patient Protection and Affordable Care Act hasenhanced the figure of individuals registered for health insurance,in turn increasing patients accessing healthcare at Sherrill.Diversification into accident and emergency cases improves thehospital’s reputation compared to that of competitors. Since thehospital has the required infrastructure capacity to deal withemergencies, then it becomes more possible to admit more patients. Asa result, Sherrill generates more resources by widening its horizon.
Marketdevelopment is a strategy that permits the hospital to venture newmarkets using available services, and infrastructure. Since SherrillHospital wants to diversify itself, it should make maximum use of theavailable infrastructure and invest in physicians. It ensures thatthe hospital progresses to be the best in provision of qualityhealthcare. Although investing in physicians may be an expensiveendeavor, in the end it will be beneficial for the hospital. As morepatients learn of the advanced infrastructure in the hospital,experienced physicians, and quality healthcare, they are drawn to thehospital in larger numbers. The more the number of patients, the moreprofit the hospital makes. Providing quality service through hiringexperienced physicians and other medical personnel also ensures thatSherrill avoids litigation, which may arise from malpractice byincompetent practitioners.
Verticalintegration refers to a strategy, which provides basic care, specialcare, or hospitalization as required via interdisplinary andspecialty group effort. It assists the hospital in minimizingexpenses and enhances effectiveness through reducing transportationexpenses and minimizing turnaround time. The strategy is selectedbecause it acts as the hospital’s decision in advancing along thecore operations distribution channels.
ServiceDelivery and Support Components
Theeffectiveness of health systems is determined by the services thehospital provides. Service delivery is an important aspect of thehospital’s value chain (Campobasso & Kucharz, 2012). It isintended at attaining the strategic goals of Sherrill Hospital. Thethree service delivery components involve:
Availability:regards to the physical access or reach of services, which conform tostandards. It is necessary to ensure that patients are capable ofaccessing services provided in the hospital. Service delivery isgeared towards guaranteeing that Sherrill provides healthcare needsunmatched to those of competitors. Availability also affects thefigure of practitioners in the hospital. In delivering services, thehospital realizes the need to ensure that the needed number ofphysicians and nurses are employed. The PPACA acts as the guidingstandards by which all available services conform. This ensures thatin line with the strategic goals, quality of healthcare remains high,and the figure of patients increase.
Affordability:refers to the capability of patients to pay for healthcare services.Legal changes and shortage of practitioners affect the chargestransferred to patients for services they receive from Sherrill.Increasing service charges seems as a viable solution in dealing withthe monetary challenges the organization faces as it re-aligns itselfto conform to the changes. However, affordability as a servicedelivery component should not be disregarded as a major factor inensuring strategic goals is actualized. Charging patients higherprices may compel them to seek services elsewhere from competitorsthat charge less. In making healthcare affordable, the hospitalshould focus on other avenues likely to generate income. Theseinclude infrastructure improvement, which enables the hospital toprovide specialized care, currently unavailable in other hospitals.
Accountability:regards to the methods intended at holding providers responsible forquality and access of healthcare from the hospital. The hospitalrealizes the need to train its practitioners. As a result, trainingensures that services provided conform to PPACA stipulations. It alsoavoids the possibility of malpractice, which is not only costly forthe hospital, but negatively affects its image. The component is inline with the strategic goals, as it promotes growth, as morepatients will access healthcare from Sherrill.
Thesupport components, which will be important in attaining thestrategic goals include:
Healthinformation structures: quality healthcare is made possible withaccess to appropriate information on health problems, on the widersurrounding where health structure functions, and on the conduct ofthe structure (Campobasso & Kucharz, 2012). Health information isachieved through training practitioners within the hospital. Thisentails timely intelligence on advancement in meeting health problemsand collective goals, healthcare access and quality of servicesavailed, and health financing involving via national health accounts.
Healthfinancing: it can be a major support component to enhance access tohealthcare. Health financing also involves an evaluation of monetarychallenges patients might face. It ensures that despite increases inprices that Sherrill charges to patients, they are still able toaccess the services from the hospital instead of shifting to otherhospitals. Such a measure is achieved if the hospital works withinsurance companies that charge fewer premiums. Insurance safeguardsthe insured when in need of costly healthcare services. Healthfinancing can be achieved through a structure that draws monetaryresources across different patient groups thus, sharing fiscalrisks.
Managementand governance: the support component plays an important function inensuring that practitioners are accountable for providing qualityhealthcare. It enables the hospital to manage the availableresources, patients and physicians in manners that guaranteeeffective care for all patients. The physicians and otherpractitioners are guided by rules and incentives created bymanagement, as a result meeting the legal changes.
Approachto Maintaining the Selected Adaptive Strategy
Astrategic planning process is one specific approach to ensuring thechosen adaptive strategies in guaranteeing that Sherrill realizes itsmission and vision. The strategic plan avails the organization with aroad map, by classifying the objectives towards which Sherrill willput more effort to actualize its mission and vision.
Theplan entails several steps. First is evaluating the situation.Sherrill Hospital needs to assess the legal changes that haveoccurred and determine what policies to amend to conform to the law.This ensures that the organization effectively retorts to changes.Situation evaluation begins with acquiring available information onSherrill’s performance, strengths and weaknesses. The informationdepicts the critical matters, which Sherrill faces and that must betackled in the strategic plan. Second is the yearly operational planthat determines the roles Sherrill Hospital will undertake in thesubsequent year. It is a one-year outline of practical action,involving, goals, actions and deadlines. This means that any actiontaken by Sherrill in the year ought to move the organization in linewith the mission and vision. Third is the yearly financial plan. Itentails the formation of a budget and behavior of several proceduresto observe the monetary condition of Sherrill. In coming up with thefinancial plan, employees should meet with organization heads andform an activity budget for every department (Jacquin, 2014). Thefinancial plan determines the salaries and benefits to be paid, moneyfor resources required, projects to be completed and all othermoney-related issues (Jacquin, 2014). The cash flow analysis isemployed to determine if Sherrill will raise the money needed inmeeting budget needs. It is necessary to be aware whether the fundswill enter into the hospital in a timely way, which ensures allexpenses are catered for accordingly.
SherrillHospital needs to develop a strategic approach. The objective of theapproach is to realign the organization’s policies with the legalchanges. Such an approach is achieved through establishment of aclear mission and vision statements. These statements assist inoutlining the strategic goals of Sherrill Hospital. The strategicapproach provides a channel for the organization to access itscurrent strengths and weaknesses. It then derives strategies formeeting the strategic goals thus, conforming to legal changes andactualizing the mission and vision.
Campobasso,F., & Kucharz, J. (2012). Developing healthcare facilities for achanging environment.Healthcare Management, 66 (5),102-6.
Jacquin,L. (2014). A strategic approach to healthcare transformation.Healthcare Financial Management, 68 (4),74-9.
Zuckerman,A. (1994). Hospital and medical staff strategic planning: developingan integrated approach. PhysicianExecutive,20(8),15-17.