Strategic Planning Analysis Of Veterans Health Administration

Running head: STRATEGIC PLANNING ANALYSIS 1

Strategic Planning Analysis of Veterans Health Administration

Name

Institution

February 9, 2018

STRATEGIC PLANNING ANALYSIS 2

Abstract

Veterans Health Administration (VHA) is the largest integrated healthcare system in the

US. It was established under the Federal Department of Veteran Affairs in 1930, whose objective

was to provide healthcare services to the veterans and their family members after an honorable

discharge from the military. As a unit of VA, VHA mandate focus on meeting and outpacing the

health and medical needs of the veteran. It has undergone significant challenges both internal and

external as well as proved critical to the well-being of veterans. The primary objective of this

paper is to provide an analysis of the organization stemming from strategic analysis to

competition analysis.

STRATEGIC PLANNING ANALYSIS 3

Strategic Planning Analysis of Veterans Health Administration

Overview and Assessment of VHA

Established on July 21, 1930, VHA is a under the U.S. Department of Veteran Affairs

(VA). It was set under Executive Order 5398 of the President, being an independent agency (VA,

2013). On March 15, 1989, the status of VA was elevated to Cabinet level under the Public Law

No. 100-527 (VA, 2013). VA’s mission is in fulfillment of the promise by President Lincoln’s to

the veterans that the government shall care for the veterans, their windows and family as a token

of appreciation for their devotion and dedication in serving and defending their country (VHA,

2003; VHA, 2014).

Following President Lincoln’s promise and VA goal of providing quality services and

world-class benefits to millions of veterans, the VHA was formed to cater for their medical and

health. VHA is mandated to provide healthcare services to the veterans (VA, 2013). It offers a

wide array of primary care, social support, medical and specialized care services aimed at

meeting and surpassing the health and special needs of the veterans. Medical research and

development are as well prioritized aimed at improving the health needs of their esteem clients

(Beheler et al., 2014).

VHA’s mission statement notes that the nit is endeavored and committed on advancing

the veteran healthcare system through critical and coherent planning, forecasting, and analysis of

information and policies (VHA, 2003; VHA, 2014). VHA considerably depends on the VA

Medical Centers (VAMC) to provide healthcare services to veterans and Veteran Integrated

Service and networks (VISN) that operationalize the VHA goals and objectives. According to

U.S. Government Accountability Office (GAO, 2016) report, VHA manages 168 VAMCs in

addition to more than 1000 outpatient facilities located across the country. In the Financial year

2015, VHA had a budget amounting to over $51 billion from $228 billion in 2013 (GAO, 2016).

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Currently, VHA serves over 6.7 million veterans. Over the years, the healthcare needs of the

veterans have been changing significantly across the demography. From the 54 hospitals under

the VHA program in 1930, VHA has expanded VA hospitals substantially to 167 and it

continues to build more across USA (VA, 2018). At least one hospital is found in the 48

contiguous states, District of Colombia and Puerto Rico. Under the Vision 2020 launched in

2003, VHA prides to establish healthcare facilities under 21 different networks hence serving

more veterans and their families than ever before (VHA, 2003).

Stakeholders

The first and most important VHA stakeholders are the veterans themselves and their

families. Without recognition of their efforts, VA would not have been established. Other critical

stakeholders include the VA Veteran Benefits Administration (VBA), and National Cemetery

Administration (NCA) officials and representatives, veteran-based organizations, health-based

education and research institutions, healthcare insurance companies, auditors, the Center for

Medicare and Medicaid Services, and VHA employees among others (VHA, 2003; VHA, 2014).

Strategic Analysis

To assess and meet the healthcare needs of the Veterans, VHA Directive created a strategic

planning process mandated to evaluate care needs, plan on accommodation of the needs, ensure

policy, and service compliance as stipulated by the VA planning requirements (VHA, 2003;

VHA, 2014). Any healthcare organization and facilities require very timely, disciplined and

coherent planning process with a clearly defined planning framework, responsibilities,

components, cycles, and timeframes. VHA Directive acknowledging this initiated the strategic

planning process outlining the comprehensive planning continuum, for VHA to ensure efficient

integration of activities, tasks, plans, and reports concerning capital assets, budgets, human

resource, information technology, strategic planning and performance metrics among other

STRATEGIC PLANNING ANALYSIS 5

activities of importance to VHA wellbeing (VHA, 2014). Therefore, the Strategic Planning

Framework ensures alignment of the VHA initiatives to the VA action plans for the provision of

exceptionally excellent services. Two primary steps denote the VHA strategic planning process:

(1) environmental assessment or scanning and (2) organizing of annual National Leadership

Council (NLC) summit for strategic planning (GAO, 2016).

i. Environmental Scanning

The environmental scanning is aimed at assessing and identifying the factors that would

potentially affect the future delivery of healthcare services by VHA such estimation of the

veteran population, needs and expectation changes among others (VHA, 2014). The scans are

critical in the development of national and organizational goals, objectives and goals. The

environmental scanning process focuses on reviewing both the current external and internal

capacities and trends in the health sector as well as other related systems such as government

regulations, research, technological advancements, veteran and employee feedbacks, and

emerging practice among others (VHA, 2014).

ii. NLC Strategic Planning Process

The NLC committee is mandated with the responsibility of decision-making by

recommending strategic paths that shall meet the VHA mission. The recommendations are drawn

from the findings of the environmental scans undertaken at both national and local levels (VHA,

2014). NLC insights must support the priorities and direction adopted by VHA. Similarly, NLC

is bestowed with the mandate of formulating strategies which be based on to accomplish the

proposed goals of certification by the Secretary for Health. Despite the fact that the planning

process is cyclical, NLC continues to develop and modify the objectives, goals, and strategies

during the planning period. The council also undertakes out-of-cycle planning and revisions in

reference to the emergency issues emanating from unpredicted events and policy change (VHA,

STRATEGIC PLANNING ANALYSIS 6

2014). The NLC deliberations are effected during the NLC annual summits. Key stakeholders at

the summits include officials from the VA central offices, VHA, central offices, VBA, VISNs,

(NCA) and representatives of other veteran-based organizations (GAO, 2016).

The overall VHA priorities are continuous improvement of veterans’ health care

experiences, continual improvement of workforce satisfaction and experience, continual

improvement of internal support services, promotion of strategic partnership improvements.

Also, the Under Secretary for Health recommends prioritization of coherent and consistent

establishment of best health care services, the building of strong and high performing network

and rebuilding of trust of the American people in VHA. (GAO, 2016)

Demographic Analysis

The beneficiary populations of VHA services consist of millions of men and women who

served in active military service and were discharged honorable conditions. Veterans discharged

under dishonorable conditions are exempted from the program. An approximate of 42 million

veterans have served America during wartime of which about 25.6 million are still alive (Beheler

et al., 2014). Over 75 percent of the veterans served in the eras of war dominated with extreme

hostility. Currently, over 6.7 million veterans are enrolled under the VHA program (GAO, 2016).

The Figure 1 bellows shows the veteran population in reference to the period if service:

STRATEGIC PLANNING ANALYSIS 7

Figure 1: Veteran Population by Era of Service (VHA, 2003)

The target market of VHA stretched from the era of Peacetime wars to post 9/11 wars

stemming from Afghanistan to ongoing wars across the globe where the U.S. military troops. All

the soldiers who are discharged from the military are eligible to enroll under the VHA program

(VHA, 2014; VHA, 2003). The veteran population is substantially changing more so with an

increased number of women and the elderly veterans aged between 65 to 84 years enrolling into

the program (VHA, 2014). As the demographic characteristics of the veteran’s population

change, so do the needs. This requires coherent strategic planning and analysis to be able to

meet the VHA objectives and satisfy the needs of the veteran. The Figure 2 below shows an

exclusive representation of demographic information about veterans.

STRATEGIC PLANNING ANALYSIS 8

Figure 2: Demographic Information on Veterans

STRATEGIC PLANNING ANALYSIS 9

Market Needs

The mission statement of VHA affirms that the unit is committed to advancing and

satisfying the needs of the veterans and fulfilling the VA mission of providing quality and

excellent health care services to the veterans (Beheler et al., 2014). In reference to the market

analysis, VHA identified a myriad of specific needs for its clients, which include the provision of

world-class and quality healthcare services optimizing the access to the facilities and augmenting

the importance value. Efficient training, education, and counseling services are prioritized

following suicide rate among veterans remain a compelling and severe public health concern.

The 2017 VHA annual report notes that over 20 veterans commit suicide in the U.S. per day

surpassing the national average rate (VA, 2018).

Post-traumatic stress disorder management and treatment services are a prime needs

among the veterans due to the harsh and hostile war experiences and increased suicide ideations.

Keeping track of the veterans’ medical records is key; therefore, improvement of a robust health

record system, as well as technology, is prime market needs (Beheler et al., 2014). Continual

improvement of the customers’ satisfaction through provision of support services and

management systems that are easy to use is key to meeting the veterans’ health needs. Due to the

ever-changing dynamics of the world economy and health needs that affect the veterans,

continual research is a crucial market need to be projected at proving the envisaged world-class

healthcare services (Beheler et al., 2014). Due to the complex injuries and psychological

complications experienced by the soldiers during and after the war, it is essential to improve

access and care to VHA programs in order to accord the veterans an efficient and seamless

patient experience.

Marketing Strategy

STRATEGIC PLANNING ANALYSIS 10

VHA has a long and outstanding history of caring for veterans. A critical marketing

strategy for it is to ensure it progressively builds trusts and confidence among the veteran

patients and the public at large that it provides quality and exceptionally excellent healthcare

services (Beheler et al., 2014). The marketing campaigns constitute of both internal and external

marketing through strategic communication such as veteran testimonies and stories as well as

posters on the same (VHA, 2014). Due to advancement in digital information technology, use of

online and web-based marketing strategies such as VHA blogs, Facebook, Twitter and Instagram

to name a few can be used to reach more veterans. Used on posters, brochures and flyers placed

in VAMCs, Public and private healthcare facilities and public utilities can enhance awareness

creation on the VHA endeavors (VA, 2018; VHA, 2003; VA, 2017).

SWOT Analysis

SWOT analysis is projected at assessing the organizational internal strengths and

weakness as well as opportunities and threats from the external environment. The Table 1 below

shows a SWOT analysis of VHA.

STRENGTHS

WEAKNESS

1.The long-standing history of caring for the

veteran from 1930, hence confidence among

veterans in it.

2.Is government based organization

appreciating the work of veterans,

3.The most extensive and most coherently

integrated healthcare system in the U.S.

1.Poor communication and dissemination of best

practices throughout VHA and other related

healthcare systems.

2.Government interference being a government

agency

3.Limited access to outpatient systems leading to

long waiting times and long distances

STRATEGIC PLANNING ANALYSIS 11

4.Strong reputation on medical merit due

excellent medical education institutions and

programs, advanced medical research, and

robust impatient stricture.

5.Decentralized leadership and management,

which allows easy integration of veterans into

service network.

6. Strong and update strategic planning

process and team.

7.Commitment to embrace and integrated

technology in its services.

8.A stable pool of motivated employees.

4.Lack of proper leadership training in decision-

making, strategic analysis, and contract negotiations.

OPPORTUNITIES

THREATS

1.The capability of providing medical care to a

specific, unique, and growing population.

2.The largest and leading integrated healthcare

system which focuses on the health of its

clients as opposed to healthcare.

3.Use of technology such as electronic

Healthcare information system to store record

and GIS to map and manage veteran

populations.

4.Potential to grow and expand its services.

1.Uncertainties in healthcare systems, policies,

reforms, and technology among others.

2.Ever increasing the cost of healthcare services,

demand for quality services and shortages of staff.

3.An ever-escalating and expanding national deficit

limiting funding by the government.

4.Government bureaucracies.

STRATEGIC PLANNING ANALYSIS 12

Competition Analysis

VHA is the United States largest integrated healthcare system providing services to a

specific and unique population. Their consumers are primarily composed of veterans hence there

is negligible competition from other healthcare systems (Beheler et al., 2014). VHA focuses on

assisting the veterans to live positive and healthy lives as well as contributing to the country’s

development, training of healthcare professional, support of disasters, and conducting medical

research. It collaborates with other medical and healthcare institutions both public and private in

an effort of enhancing health care services and outcomes. Nonetheless, VHA being a government

agency, it is prone to bureaucracies limiting its capacity to modify and implement changes hence

proving a substantial competitive challenge to private healthcare systems (GAO, 2016).

Conclusion

The analysis above vindicates that VHA is unique organization and healthcare system for

it services and target market is specific and unique. The market is exclusive and only

differentiated based on demographic and geographical attributes. Unlike many organizations, the

markets are often very diverse but VHA’s in exceptionally specific. VHA has been in operation

for 88 years hence undergone a significant transformation to ensure it meets the customers’

needs. Following the public concern on suicides and suicidal ideation, VHA has an immense

responsibility to mitigate the cases among the veterans being they account for the higher number.

However, it is crystal clear that VHA is committed to providing quality and continuously

improve healthcare services to the veterans.

STRATEGIC PLANNING ANALYSIS 13

References

Beheler, J., Durando, P., Gonzalez, E., Kessinger, S., & Smith, M. (2014, Dec 16). Veterans

Health Administration Marketing Plan. Retrieved Feb 8, 2018, from U.S Army-Baylor

Program:

http://stephaniekessinger.weebly.com/uploads/4/8/4/5/48452649/vamarketing_plan.pdf.

GAO. (2016). Veterans Health Care: Improvements Needed in Operationalizing Strategic Goals

and Objectives (Report to Congressional Requesters). Washington, DC: United States

Government Accountability Office. Retrieved Feb 8, 2018, from

https://www.gao.gov/assets/690/680581.pdf

VA. (2013). FY 2014-2020 Strategic Plan. Washington, DC: Department of Veterans Affairs.

Retrieved Feb 8, 2018, from https://www.va.gov/op3/docs/StrategicPlanning/VA2014-

2020strategicPlan.pdf

VA. (2017). FY 2018 / FY 2016Annual Performance Plan and Report (APP&R). Washington,

DC: Department of Veteran Affairs. Retrieved Feb 8, 2018, from

https://www.va.gov/budget/docs/VAapprFY2018.pdf.

VA. (2018). Agency Financial Report Fiscal Year 2017. Washington, DC: Department of

Veterans Affairs. Retrieved Feb 8, 2018, from

https://www.va.gov/finance/docs/afr/2017VAafrCover.pdf

VHA. (2003). VHA Vision 2020. Washington, DC: Department of Veteran Affairs. Retrieved

Feb 8, 2018, from https://www.va.gov/healthpolicyplanning/vision2020.pdf

VHA. (2014). Strategic Planning Process (VHA Directive 1075). Washington, DC: Department

of Veterans Affairs. Retrieved Feb 8, 2018, from

https://www.va.gov/vhapublications/ViewPublication.asp?pub_ID=2994

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