Science

Analysis of existing information from Community Hospital strategic planning scenario

Perceived strength (internal)

The Stevens District Hospital’s mission and vision statements foster its competitive edge in the healthcare industry market. For instance, its mission states: To improve health by providing high-quality care, a comprehensive range of services, and exceptional service. The key words of “high quality”, “comprehensive range of services”, and “exceptional service” serve to build its brand image and to draw in customer loyalty because they form the foundation of successful health care organizations.

The hospital has an unlimited capacity to provide efficient and high quality services in terms of achieving four of the six criteria of the HCAPS scores, having an adequate bed capacity for acute care.

Analysis of existing information from Community Hospital strategic planning scenario

Perceived strength (internal)

The company has a stronger competitive advantage in terms of management, which influences strategy formulation and implementation. Private health care facilities maximize patient’s value for money (MedicareHelp, 2017). The hospital was previously county owned but is now being managed by an independent board of directors. This ensures that it is efficient in decision-making and problem solving compared to a publicly owned facility, which faces bureaucracy limitations.

The strength that stands out is its strategy plan in increasing service delivery, which is evidenced in the increased number of surgeries and ER Visits from the previous year.

Analysis of existing information from Community Hospital strategic planning scenario

Perceived weakness (internal)

The shift of the hospital from being managed by the county administration could have limited its ability to hire more medical practitioners. Its staff consists of three family practice physicians, one obstetrician, one medical oncologist, and one non-invasive cardiologist. This could have affected its admission rates which increased by small margin.

The hospital faces the challenge of limited staff capacity, which limits it service delivery due to poor financial management. This introduces the risk of medical errors and negligence in case of sudden increase in admissions.

Analysis of existing information from Community Hospital strategic planning scenario

Perceived weakness (internal)

The hospital’s management faces the challenge of maintaining and sustaining its 162-bed capacity in terms of diagnosis, treatment and after care programs. Its five-year plan indicates the hospital’s plan to establish a six family practice, which will offer services in cardiology, oncology and women’s service. This plan has the possibility of taking more than five years if the management cannot devise a plan to maintain its overhead costs and increase its sales revenues.

The hospital has an inefficient human resource system which is revealed in its significant increase in the salary package which indicate that there is more cash flow outs that flow ins.

Analysis of existing information from Community Hospital strategic planning scenario

Perceived opportunity (external)

The hospital operates in a market, which has an upsurge of healthcare providers including the government. The Affordable Care Act has helped to link low-income earners to better healthcare services thus increasing traffic in health care institutions. Insurance costs have always been a contentious issue in health care since it usually involves legal and moral battles between insurance providers and patients with healthcare institution caught in the middle. The hospital therefore needs to be compliant to healthcare providers such as insurance companies and government health schemes.

New entrants in the healthcare industry such as Affordable Care Act ensures that the hospital increases its admissions and expands its operations in a six family practice as the challenges of payment of services which will be eliminated.

Analysis of existing information from Community Hospital strategic planning scenario

Perceived opportunity (external)

The hospital faces the challenge of increasing overhead costs such as salaries and benefits and supplies and other expenses. This shows an underlying problem in its financial and management accounting systems, which need to be monitored for instance duplicated employee positions, and high vendor costs. This is in consideration to its primary competitors: Hanover County Hospital and Medical Center in County South of Stevens being able to attract patients from its facility.

Technology offers the platform of e-commerce in which the hospital can automate its services such as booking appointments with its healthcare staff, after care of patients at home and effective record keeping. This overall minimizes pressure on the staff and the overhead costs. “Technology drives healthcare more than any other force and in the future it will continue to develop in dramatic ways” (Thimbleby, 2013, par.2).

Analysis of existing information from Community Hospital strategic planning scenario

Perceived threat (external)

Favorable market conditions such as globalization and technology have introduced the risk of new entrants into the healthcare market. The hospital faces two significant competitors in both the local and non-local market. This implies that it needs to continuously update its marketing strategies in order to be among the key players in the market.

It faces the threat of limited patient admission and treatment due to its competitors such as Medical Center in County South of Stevens, which has a robust investment in its systems. The hospital has managed to draw in patients in primary and specialty care from Stevens hospital. This therefore undermines its five-year plan.

Analysis of existing information from Community Hospital strategic planning scenario

Perceived threat (external)

The advent of new entrants such as Affordable Care Act places the hospital in a precarious position in terms of regulations and payment conditions. Other insurance companies also introduce new problems such as determining which services can be covered by insurance. This also leads to the need for emergency care when there is an upsurge of patient admissions.

Favorable and improved policymaking has enabled a significant number of people to afford care. This introduces the problem of managing the admission and treatment capacity to the hospital. If it cannot manage the influx of patients, the hospital risks its brand image and market position.