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Running Head: STRATEGIC HEALTHCARE

Strategic Health Care

Name

Institution

STRATEGIC HEALTHCARE 2

Strategic Health Care

Executive Summary

The analysis presents a physician named DR. Louis Michel’s role in a healthcare facility.

Based on the case, Dr. Louis ran and co-managed a healthcare facility together with other two

practitioners in the 1900s. During the period starting from the 1900s to the 1950s, the U.S.

healthcare sector took significant strides of advancements that included medical technology and

other specialized abilities. Additionally, the demographical aspect of the U.S. also changed

within the five decades, and this led to the adjustments in the government insurance programs.

As a result, institutions in the medical sector experienced a tremendous rise in the operating costs

due to the significant changes in the manner in which healthcare was being managed, examined

and billed. As a practitioner, Dr. Louise was among the people dealing with the adjustments

issues. Particularly, he was required to develop a strategy to sustain his business, offer quality

care services to the patients and observe changing regulatory matters. Conversely, Dr. Louise

was having financial struggles concerning his partners, employees’ issues regarding time

management capabilities and issues with the changing technology. When Dr. Louise was

initiating the healthcare facility in the area in 1900, only a few people had started the business.

However, as time went by, more people ventured into the business leading to competition.

Therefore, Dr. Michael was required to compete with new healthcare facilities entering the

medical industry. Serious scrutiny of Dr. Louise practices’ issues provides a study that could

result in availing solutions for progress and advancement.

Situation Analysis

The concept explains a group of techniques used by managers to examine a firm’s

internal and external environment to have a clear image of its capabilities, consumers and

STRATEGIC HEALTHCARE 3

economic environment (Pahl & Richter, 2007). A situation analysis is a significant concept in

any business and requires regular reviews to keep it updated for optimal performance and for its

efficiency, which ensures the firms operations run smoothly. The case under study reveals that

Dr. Louise was faced with competition from emerging physicians within the locality. The doctor

held employees privileges in a minor healthcare facility. Two more prominent hospitals operated

for the last 40 years. The hospitals competed with Dr. Louise for the market share. As a result of

competition, the larger hospitals caused massive problems when they started to contend for

available physicians. Another issue in the case is the aging patient of Dr. Louise. Based on the

case, Dr. Louise began with most of his patients during the formation of his healthcare. Majority

of the patients were aging with others going away for the most of the year and living in other

parts of the country and visiting other doctors. Additionally, the changing hospital Advanced

medical technology was changing the manner in which payments and patient listing and records

were maintained. The new technology allowed procedures to be conducted in a quicker and

easier reimbursement, with optimal efficiency and reduced errors. During the period, the doctor

was tasked with creating a plan to reach more patient via some rounds. Technically, the doctor

seemed the only one committed to his duties and responsibilities. The doctor is also aging, and

he needs to decide his replacement or successor in the business.

SWOT Analysis

Strengths

 The doctor can sustain his staff.

 Since the healthcare facility begun in 1900, the doctor was able to maintain customers

some of whom became his friends.

Weaknesses

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 Some of the regular customers of Dr. Louise may move and spend some time in other

parts of the country while visiting other doctors. The scenario would cause loss of

income.

 New medical technology led to high costs causing problems to its adaptability.

 The aging population

 Poor time management among the staffs.

Opportunities

 The advancement of new medical technology may lead effectiveness and efficiency in the

record keeping.

 Increasing population could be beneficial to the facility.

 Changing medical sector present the doctor with a huge diversity of opportunities in

medicine.

Threats

 Increasing competition from new healthcare facilities within the area.

 The aging population.

Mission Statement

The provision of quality healthcare services to our customers, in time and with much care.

Organizational Strategy

Presently, Dr. Louise’s facility intends to accept a fee schedule from additional major

third parties including PPO and HMO’s which will help cover patient’s expenses. An

organization strategy refers a group of activities a firm proposes to accomplish its long-term

objectives (Sinofsky & Iansiti, 2010).

Proper Integration

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The doctor should establish an effective vertical and horizontal integration system in the

healthcare. The top management of the facility needs to have a healthy relationship with the

staff, patients and the community which helps in avoiding misunderstandings and conflicts

within the hospital. Therefore, Dr. Louise and his partners need to deal with complex issues,

such as partnerships, culture, organizational structure, efficiencies and infrastructural

requirements (Menaker, 2009). The changing trends in medical sector require an adequate

response in all the mentioned areas.

The CEO/Founder as a Crucial Element of Change

During the early days, CEOs were recognized for their excellent healthcare

administration who portrayed financial and operational expertise within the firm, with the

support and cooperation of their junior staff. The scenario is presented in the case where Dr.

Louise is tasked with overseeing daily operations of the facility. However, Dr. Louise’s

weaknesses are evident based on how employees are conducting themselves. This shows how

demotivated they are in their jobs (Menaker, 2009). The role of CEO has changed where they are

perceived as agents of change and are required to win hearts of various stakeholders including

staff, community, and other physicians. Since Dr. Louise was becoming old, he should have

begun the process of finding a replacement. The changed world requires a CEO with adequate

vision and a complete understanding of complex, strategic and practical activities to ensure the

success of the organization.

Organizational Culture

The concept explains the framework of mutual traditions, beliefs, and values which

regulates the manner in which individuals within an organization (Alvesson, 2013). Such

universal values hold a robust impact on staff within an organization and direct their dressing

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code, activities, and performance of their duties. Dr. Louise facility requires a new set of values

that prioritizes patients’ services. Based on the case, timekeeping was a major issue among the

facility’s staff hence need for a new culture.

New Executive Skills

In the contemporary, CEOs all over the world agree that creating a care-centric delivery

system requires staff with a perfect combination of relational and analytical abilities. Dr. Louise

facility needs him to employ people who are willing to work as a team-team player. Also, the

new health care demands staffs to think critically, operate effectively and efficiently. People with

analytical skills possess the ability to understand extreme changes within the medical sector.

Regarding relationships, the new kind of executive need to establish partnerships, build trust and

execute changes in the medical field accompanied by strategic associates (Menaker, 2009). As

the CEO, Dr. Louise should prioritize reorganization of his team to enhance more significant

impact with the available personnel.

Concentrate on the Important

Presently, managers in various sectors are concerned with the volume and the velocity of

job faced by their staff. Improving the intensity and productivity of the staff, managers should

introduce new practices to assure that the prevailing interaction and interdependence within the

teams. For this matter, CEOs need to make their priorities right by focusing on the most

significant tasks in their organization. They should put in place appropriate infrastructures,

equipment, personnel, culture, and resources to attain organizational goals and objectives. Dr.

Louise should establish a system that gives priorities to the patients. Also, he should create

marketing strategies to attract new patients while maintaining the old one for a successful

business.

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Recommendations

Since Dr. Louise is reluctant to retire, he needs to learn new techniques for managing his

staff which seems demotivated. Additionally, Dr. Louise should identify his successor and train

him or her to conduct his activities in the facility. Besides, he needs to oversee a structural and

behavioral change especially by establishing a new organizational culture. The healthcare facility

should also adopt new technological methods and maintain proper updates in relation to the

medical sector. As the CEO, Dr. Louise needs to act as the new inspiration and element of

change to his healthcare.

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References

Alvesson, M. (2013). Understanding organizational culture. Los Angeles: SAGE.

Menaker, R. (2009). Leadership strategies in healthcare. J Med Pract Manage, 24(6), 339-343.

Pahl, N., Richter, A., & University of Applied Science Berlin. (2007). SWOT analysis: Idea,

methodology and a practical approach. Munchen: GRIN Verlag.

Sinofsky, S., & Iansiti, M. (2010). One strategy: Organization, planning, and decision making.

Hoboken, N.J: Wiley.

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