Strategic Health Care
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
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
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.
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
New medical technology led to high costs causing problems to its adaptability.
The aging population
Poor time management among the staffs.
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
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
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
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
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.
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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