Health Care Management

Strategic Planning
The process of identifying a desired future state for an organization and a means to achieve it.
What is the purpose of strategic planning?
Identify market forces and how they may affect the organization and to determine an appropriate strategic direction for the organization to take that will counteract those forces and/or tap their potential.
Explain the strategic planning process
Consists mainly of two interrelated activities: the development of the strategic plan and execution of the organization’s strategy. The development of the plan is most often done with a multiyear time horizon (3 or 5 or 10 years). Strategy execution, on the other hand, is done on a continuous basis and is the critical factor in management of the organization’s strategic intentions, optimally providing continual feedback for the development of any future plans.
List all the steps of the strategic planning process
(1) SWOT Analysis
(2) Strategy Identification and Selection
(3) Strategy Tactical Plans
(4) Rollout and Implementation
(5) Monitoring and Controlling
(6) Feedback
List 2 important functions that SWOT serves
(1) To gather a snapshot of how the organization is currently interacting with the market in comparison to the internal capabilities and intended strategic direction of the organization.
(2) Identify market opportunities and threats that the organization may want to address in the future strategic efforts.
Explain what happens after the strategic plan is completed?
Operating, marketing, and other supporting plans are developed. Control and monitoring of the plan follows and is most effectively done on an ongoing basis throughout the year.
What is the initial planning phase referred to?
SWOT analysis
List the components of SWOT analysis
(1) Market assessment
(2) The statement of the mission, vision, and values of the organization.
(3) Organization assessment
Explain market assessment
Maybe the most complex and time-consuming section of the strategic plan in that, in this component,virtually all aspects of the market must be examined to determine their future implications of the organization.
Explain the Five Forces Model
Identifies five market or industry forces that, when combined, determine the attractiveness of competing in a particular market.
Market Assessment Model
(1) Power of the Healthcare Workforce
(2) Power of the consumer and payers
(3) Innovations in technology
(4) Regulatory environment
(5) Competitive rivalry
Explain the power of the healthcare workforce
Can have significant implications for any healthcare organization as the workforce is composed of the front line of caregivers in providing services. In the SWOT analysis, an organization should look at the availability of all subsets of healthcare providers that are critical to its success.
Define laborists
OBs who hired solely to work in the hospital and deliver babies
Power of Consumers and Payers
they are becoming more significant market force- and one that has required a dramatic shift in the way the industry offers services.
Organizational Volume Forcast
Initiated by identifying the organization’s service area- usually a zip code- defined area where 70-80 % of its patients are drawn from- and determining the population use rates for applicable service line
Strategy identification
Usually begins with the baseline scenario developed for the volume forecast. Important to apply planning assumptions to the scenario and not simply accept baseline.
Strategy tactical plans (final step)
Necessary for translating the plan into action. This step answers the who, what, when, where, and how questions of surgery implementation.
List the two main steps of the rollout plan
(1) Communicated at all levels of the organization
(2) Supporting plans such as the financial and budgeting, operating, marketing, capital, and master facilities plans
What is a dashboard
depict strategic, operational, and/or financial outcome indicators, depending on the organization’s needs, but care must be taken to highlight a manageable number of indicators, or the dashboard will lose its functionality.
Strategy execution
Is crucial for organizational success and cannot be overstated in the terms of importance; unfortunately, this is often an element of strategic planning that many organizations overlook.
Strategy Tactical Plans steps
(1) Implementation steps
(2) Timeframes
(3) Results
Rollout and Implementation steps
(1) Board Approval/ Endorsement
(2) Operating Plan
(3) Marketing Plan
(4) Facilities Plan
(5) Capital Plan
Strategy Identification and selection steps
(1) Scenario Exploration
(2) Assumptions
(3) Resource Matching
(4) Outcomes
What is marketing?
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value of customers, clients, partners, and society at large
Marketing concept
An organization must create, communicate, and deliver customer value to selected target markets more effectively than its competition to achieve its goals and objective.
Customer Value
The difference between the benefits a consumer perceives from the purchase of a product, service, or idea and the cost to acquire those benefits.
Social Marketing
the design, implementation, and control of programs calculated to influence the acceptability of social ideas and involving consideration of product planning pricing, communication, distribution, and marketing research.
Social marketing includes?
(1) the application of commercial marketing principles and techniques.
(2) Used to influence behavioral change
(3) focused on a specific target audience
(4) used in order to promote public health
(5) intended to benefit society as a whole
Cause-related marketing
Links a for-profit company and its offering to a social issues, with the goal of building brand equity and increasing profits.
Controllable factors consist of four Ps. What are they?
(1) Promotion
(2) Price
(3) Place
(4) Product
List some uncontrollable factors
(1) Political
(2) Economic
(3) Social and Cultural
(4) Technological
(5) Regulatory
(6) Competitive
Define healthcare marketing management
Is the art and science of selecting target markets, creating, communicating, and delivering value to selected customers in a manner that is both sustainable and differentiated from the competition.
Define segmentation
Refers to the process of dividing the total market into groups or segments that have relatively similar needs for products and services.
Cross-functional teams
Provide input and insights throughout the strategic marketing process
What are the three main levels for the development of a marketing strategy?
(1) Core strategy
(2) Competitive positioning
(3) Implementation
Define core strategy
Effective marketing strategy starts with a detailed and creative assessment of both the company’s capabilities- its strength and weaknesses relative to the competition- and the opportunities and threats posed by the environment.
Define competitive positioning
Target markets are selected, which determines who are the competitors. At the same time, the company’s differential advantage, or competitive edge in serving the customer targets is defined.
Define Implementation
A marketing-oriented organization must be capable of putting the strategy into practice.
Concentration or muti-segment
Refers to the various techniques used by healthcare organizations and providers to positioning the brand image and offerings in the mind of the target market.
Marketing Plan
Is a written document that serves to guide marketing initiative across the organization.
(1) Part of the broader strategic plan with a long term horizon
(2) Contains specific tactical marketing activities that are more short-term in nature
(3) Organizations usually develop tactical implementation plans on an annual or-bi-annual basis.
What are the two categories of strategies?
(1) Concentration
(2) Multisegment
Aspect of the strategic marketing process brings healthcare marketing closer to tactical implementation.
Organizational behavior
Concentrates on organizational buyers, such as employers purchasing healthcare insurance for employees.
Consumer behavior
Refers to the totality of consumer’s decisions with respect to the acquisition,consumption, and disposition of goods, services, time, and ideas by humans over time.
List the 3 levels for consideration for outcomes at three levels
(1) Individual
(2) Organizational
(3) Societal
Healthcare quality
Degree to which health services for individuals or populations increase the likelihood of desired health outcomes and are consistent with the current professional knowledge.
Structural elements
quality involve the material and human resources of an organization and the facility itself.
Involves the actual delivery of care as well as its management
Are the resulting health status of the patient.
Four components of quality care
(1) the technical management of health and illness
(2) the management of the interpersonal relationship between the providers of care and their clients
(3) the amenities of care
(4) the ethical principles that govern the conduct of affairs in general and the healthcare enterprises in particular.
Technical management
focuses o0n the clinical performance of healthcare providers.
Management of interpersonal relationship
Underscores the coproduction of care by providers and patients.
Amenities of care
speak to the patient’s interest in pursuing individual well-being.
Ethical principles
speak to the provider’s interest in furthering societal and organizational well-being.
providing services based on scientific services based on scientific knowledge to all who could benefit and refraining from providing services to this not likely to benefit.
avoiding waste, in -particular waste of equipment, supplies, ideas, and energy.
Stages of Consumer Decision Making Process
(1) Problem recognition
(2) Internal Search
(3) External search
(4) Alternative Evaluation
(5) Purchase
(6) Post-Purchase Evaluation
Common-cause variation
production process- due to natural variations in raw materials, minor electrical voltage fluctuations, etc. – often were impractical to control.
Special-cause variation
due to operator behaviors, incorrectly calibrated machinery, the substituting of different types of raw materials,etc.- could be controlled.
Plan-Do-Check- Act
cycle model for improving production process.
Baldrige Award Criteria
provide a broad strategic framework organizations can use to Improve quality
Common elements of quality improvement
(1) Measurement
(2) Process variation
(3) Statistical process control
the translation of observable events into quantitative terms.
Statistical variation control
is a method by which process variation is measured, tracked, and controlled in an effort to improve the quality of process