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Posted: August 26th, 2026
The AHA Environmental Scan for Health Care Strategic Planning
Strategic Planning and Environmental Analysis in Health Care Organizations: A Comprehensive Assignment Guide
Health care organization leaders must systematically analyze their external environment and anticipate significant shifts to maintain competitive positioning, yet many administrators struggle to translate environmental scan data into actionable strategic priorities that align with their organization’s mission and operational realities.
MHA‑FPX5010 Assessment 1
Note: Each assessment in this course builds upon the work you have completed in previous assessments. Therefore, you must complete the assessments in the order they are presented.
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Health care organization leaders need to understand the external environment in which they operate. Additionally, they need to anticipate and respond to the significant shifts taking place within that environment. The American Hospital Association’s annual Environmental Scan provides the foundational data and trend analysis that leaders require to make informed strategic decisions about their organization’s future direction. An organization engages in service area competitor analysis to:
- Determine the geographic service area.
- Analyze the competitors within that service area for strengths and vulnerabilities.
- Assess the impact of its strategic actions against specific competitors.
- Anticipate potential actions a competitor might make that would endanger the organization’s market position.
Analyzing competitors assists organizations in identifying their competitive advantage, the basis on which they are willing to compete with anyone. As Ginter, Duncan, and Swayne (2018) explain in their foundational text, competitor analysis represents a critical component of the external assessment phase, enabling organizations to position themselves strategically within an increasingly crowded and resource-constrained marketplace.
Understanding the Assignment Framework and Organizational Selection
For the first assessment, you will review the most recent Environmental Scan report from the American Hospital Association (AHA) and choose one of the factors identified in the report as the basis for your assessment. You will also select a health care organization you will use for all the assessments in the course. Using the factor you selected, you will examine the importance of strategic planning in general and the importance for your selected organization. Based on that, you will describe the next steps for the organization. The AHA’s 2026 Environmental Scan highlights persistent financial constraints, workforce strain, and shifting demand patterns as conditions that now shape daily operations and long-term strategy rather than emerging issues that can be addressed later.
Reminder: Complete the assessments in this course in the order they are presented. You will complete sections of a strategic management plan in each assessment.
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In this assessment, you’ll select a health care organization (either your current employer or the Nor’easter Medical Center Hospital Overview [PDF] example provided). You are highly encouraged to select your current employer on which to base your work, and if you choose this path, make sure the Learner and Employer Acknowledgement and Release Form from your workplace is completed.
See the Workplace Integrated Learning resource for more information about selecting the health care organization you will use for the assessments in this course.
Professional Context and Strategic Management Imperatives
Health care organizations have embraced strategic management and developed unique processes for their industry. Health care leaders have found that strategic thinking, planning, and managing strategic momentum are essential for coping with the health care industry’s dynamics. Strategic management has become the single clearest demonstration of effective leadership in health care organizations. The AHA’s 2025 Environmental Scan specifically identifies workforce challenges, financial sustainability pressures, and care delivery transformation as the top issues facing hospital and health system leaders, underscoring why strategic management has moved from an optional activity to an operational necessity.
Today’s health care organizations prepare themselves for the present and the future through strategic management. First, they must understand the importance of strategic planning and its key concepts and components. Health care leaders must determine if their organization’s goals align with its mission, vision, and values and if the current strategic plan has been met. The 2026 Environmental Scan Leadership Discussion Guide provides probing questions that help leaders review their business model, reassess their approach to value-based care, and evaluate whether their current strategies remain relevant in a rapidly evolving landscape.
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Once strategic leaders are confident the mission, vision, and values are well formulated, understood, and communicated, they then focus on the activities that will make the most progress toward accomplishing the organization’s mission and move it toward realizing its vision. These activities are called strategic goals. Finally, health care leaders will assess if there are any needed realignments and make recommendations for next steps.
This assessment allows you to consider the importance of strategic planning and understand the core concepts involved.
Assessment Preparation and Environmental Scan Selection
To begin, review the most recent Environmental Scan report from the American Hospital Association (AHA). AHA produces a new Environmental Scan report each year. Go to the web page found at Assessment 1: AHA Guides/Reports to find the latest environmental scan. Scroll down on the page until you find the link to the Environmental Scan for the current year, and click the link. The 2025 Environmental Scan contains data, surveys, trends, thought leadership, and educational resources illustrating the top issues facing the health care field, including workforce dynamics from vacancy rates and remote work trends to tech-driven advancements.
After you have read the report, choose one of the factors identified in the report as the basis of your assessment. In the 2023 report, these factors include:
- Financial Stability.
- Workforce.
- Health Equity.
- Behavioral Health.
- Better Care and Greater Value (affordability and access, quality and safety, value-based delivery, and payment models).
- Rural Health.
- Consumerism.
- Social and Demographic Trends.
Using the factor you chose from the AHA Environmental Scan, and your chosen organization, you will describe the importance of strategic planning. Specifically, why it is important to you and why it is important to your organization. Next, you will describe the core concepts of the strategic plan and its next steps. This will include the vision, mission, objectives, strategy, approach, and tactics.
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Guiding Questions for Strategic Analysis
Asking yourself the following questions will prepare you to complete this assessment.
- Why is strategic management important?
- How often should a strategic plan be developed?
- What are the core concepts of a strategic management plan?
- What type of leadership style is best when creating a strategic management plan?
- What environmental culture, climate, and design are best to achieve success?
- Are goals at the organization you selected currently in progress or met?
- Do current strategies at your selected organization provide value?
- Do current strategies align with the organization’s current mission, vision, and values?
- What directional pathways should the health care organization take to achieve their strategic objectives? What methods/tools would you use to further analyze the organization’s strategies (e.g., SWOT, PESTEL, TOWS, et cetera)?
Executive Summary Instructions
Using the Executive Summary Assessment Template [DOCX] provided, write a 2–3 page executive summary. In the executive summary:
- Describe the purpose of the executive summary, including a brief introduction to your chosen organization.
- Describe strategic planning’s importance to you, and its importance to the organization you selected.
- Using the factor from the AHA’s most recent Environmental Scan report that you selected, analyze the strategic core concepts.
- Analyze the core concepts of a strategic plan in general.
- Analyze what the strategic core concepts are for your organization.
- Consider the organization’s next steps.
- Evaluate the directional pathways the health care organization should take to achieve its strategic objectives.
- Analyze the methods/tools you would use to further analyze the organization’s strategies.
Additional Requirements
- Document Format: Use the Executive Summary Assessment Template [DOCX] to create a professional executive summary.
- Document Length: 2–3 pages.
- Supporting Evidence: Include at least 3 academic or scholarly sources.
- Readers of your summary will want to know the sources of your information, so be sure to include all applicable sources.
- One source should be the AHA’s most recent Environmental Scan report.
- APA Formatting: Format in-text citations and references according to current APA style and formatting. Evidence and APA can help with this.
- Submission Requirements: Submit your Executive Summary, and if using your workplace organization, also submit the Learner and Employer Acknowledgement Release Form in the Assessment area.
Sample Executive Summary Content: Illustrative Example
The following sample content demonstrates how a student might approach this assignment using the Workforce factor from the AHA Environmental Scan and a fictional regional medical center.
Nor’easter Medical Center, a 350-bed regional teaching hospital serving a six-county area in the northeastern United States, faces significant workforce challenges that threaten its ability to maintain quality patient care and financial stability. The 2025 AHA Environmental Scan reveals that workforce shortages, clinician burnout, and administrative burden represent the most pressing operational challenges facing hospitals nationwide, with labor accounting for 60 percent of hospital expenses. Strategic planning has become essential for Nor’easter because the organization must proactively address these workforce pressures rather than reactively respond to staffing crises that compromise patient safety and employee retention. The organization’s current strategic plan, developed in 2022, focused on expanding service lines and increasing market share, yet it did not adequately anticipate the severity of the workforce shortages that have materialized over the past three years.
For this student’s analysis, the core concepts of a strategic plan—vision, mission, objectives, strategy, approach, and tactics—provide the framework for evaluating Nor’easter’s current position and identifying necessary realignments. The organization’s mission statement emphasizes “compassionate, patient-centered care accessible to all members of our community,” yet the workforce shortages have created situations where the hospital must divert patients to other facilities due to insufficient nursing staff. This misalignment between mission and operational reality signals the need for strategic recalibration. Swayne, Duncan, and Ginter (2022) emphasize that effective strategic management requires organizations to continuously scan their environment and adjust their directional strategies accordingly, a process that Nor’easter has not fully embraced.
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Based on this analysis, the recommended next steps for Nor’easter Medical Center include developing a comprehensive workforce strategy that addresses recruitment, retention, and professional development through targeted investments in technology that reduces administrative burden, partnerships with nursing schools to create pipeline programs, and redesigned care delivery models that optimize the use of existing clinical staff. The student would employ SWOT analysis to assess Nor’easter’s internal strengths and weaknesses relative to workforce challenges, while PESTEL analysis would examine the political, economic, social, technological, environmental, and legal factors affecting the organization’s ability to attract and retain talent. These analytical tools, combined with insights from the AHA Environmental Scan, provide the evidence base for strategic recommendations that align with the organization’s mission and position it for sustainable success in an increasingly competitive health care environment.
Research, Writing, Citation and Referencing Guidance
To produce a high-quality executive summary that demonstrates strategic thinking and meets academic standards, students should integrate peer-reviewed sources that provide theoretical frameworks and empirical evidence supporting their analysis. The foundational text by Ginter, Duncan, and Swayne (2018) offers comprehensive coverage of strategic management processes specifically tailored to health care organizations, including detailed guidance on conducting environmental scans, competitor analysis, and strategy formulation. Students should reference this work when discussing the theoretical underpinnings of strategic planning and when explaining why environmental scanning represents a critical first step in the strategic management process.
When analyzing the specific factor selected from the AHA Environmental Scan, students should cite the report directly and connect its findings to their chosen organization’s situation. The AHA’s annual Environmental Scan provides authoritative data on industry trends, making it an essential source for establishing the external context within which the organization operates. For example, a student analyzing workforce challenges might reference the scan’s findings on clinician burnout, vacancy rates, and the impact of technology on workforce satisfaction, then discuss how these national trends manifest at their local organization.
Additional scholarly sources should be selected based on their relevance to the specific factor being analyzed. For financial stability analysis, sources on health care finance and reimbursement models would be appropriate. For health equity analysis, sources on social determinants of health and disparities reduction would strengthen the argument. All sources should be cited in APA format, with in-text citations integrated naturally into the narrative rather than tacked on at the end of sentences. The reference list should include complete citations with DOIs or URLs where available, demonstrating the credibility and verifiability of the evidence presented.
Why This Matters in Practice
The ability to conduct environmental analysis and translate findings into strategic action distinguishes effective health care leaders from those who merely react to industry changes. Hospital and health system boards increasingly expect executives to demonstrate strategic thinking and provide evidence-based rationales for resource allocation decisions. Organizations that fail to engage in systematic environmental scanning risk making strategic decisions based on outdated assumptions, potentially compromising their competitive position and their ability to fulfill their mission. The AHA’s Environmental Scan and Leadership Discussion Guide provide practical tools that bridge the gap between data analysis and strategic action, enabling leaders to ask the right questions and develop responses that address both immediate challenges and long-term opportunities. This assignment prepares students for these real-world responsibilities by developing the analytical and communication skills essential for effective strategic leadership in health care organizations.
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Frequently Asked Questions
What is the purpose of an environmental scan in health care strategic planning?
An environmental scan provides health care leaders with systematic data and trend analysis about the external factors affecting their organization’s operations and strategic position. The AHA Environmental Scan serves as a foundational resource that leaders use to identify emerging challenges, assess competitive dynamics, and inform strategic decision-making.
How do I select the right factor from the AHA Environmental Scan for my analysis?
Select the factor that most directly relates to your chosen organization’s most pressing strategic challenge or opportunity. Consider which factor has the greatest potential impact on your organization’s ability to achieve its mission and which factor aligns with your personal interests or professional experience. The factor you select will shape your entire analysis, so choose one that offers sufficient depth for a comprehensive executive summary.
What strategic analysis tools should I use beyond the AHA Environmental Scan?
SWOT analysis (examining Strengths, Weaknesses, Opportunities, and Threats) and PESTEL analysis (examining Political, Economic, Social, Technological, Environmental, and Legal factors) are standard tools that complement the environmental scan. These frameworks help organize your findings and identify specific strategic actions your organization should consider.
How do I connect the AHA Environmental Scan findings to my specific organization?
Begin by identifying the national trends the scan describes, then analyze how those trends manifest at your local organization. Consider whether your organization faces the same challenges as the national average, whether it is better or worse positioned, and what specific factors (local demographics, competitive dynamics, organizational history) explain any differences.
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What leadership style is most effective for strategic planning in health care?
Collaborative leadership that engages diverse stakeholders across the organization tends to produce more effective strategic plans because it builds buy-in and incorporates multiple perspectives. Leaders who facilitate inclusive planning processes while maintaining clear strategic direction are better positioned to develop plans that reflect organizational realities and gain the support needed for successful implementation.
References
American Hospital Association. (2024). 2025 Environmental Scan. https://www.aha.org/system/files/media/file/2024/11/Environmental-Scan-2025.pdf
American Hospital Association. (2025). 2026 Environmental Scan. https://www.aha.org/system/files/media/file/2025/12/Environmental-Scan-2026.pdf
American Hospital Association. (2025). 2026 Environmental Scan Leadership Discussion Guide. https://www.aha.org/system/files/media/file/2025/12/2026_Environmental_Scan_Leadership_Guide.pdf
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Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health care organizations (8th ed.). Wiley. https://www.wiley.com/en-us/The+Strategic+Management+of+Health+Care+Organizations%2C+8th+Edition-p-9781119349709
Swayne, L. E., Duncan, W. J., & Ginter, P. M. (2022). Strategic management of health care organizations (8th ed.). Wiley.
Write a 2-3 page executive summary analyzing a selected factor from the AHA Environmental Scan and its implications for strategic planning in a health care organization of your choice, incorporating at least three scholarly sources in APA format.
Sample paper:
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Executive Summary: Workforce Strategy and Strategic Planning at Nor’easter Medical Center
Purpose and Organizational Context
Nor’easter Medical Center serves as the focus of this executive summary, a 350-bed regional teaching hospital that covers a six-county area in the northeastern United States. The summary explains why strategic planning matters for a hospital under pressure, and it connects that reasoning to one dominant external force: the health care workforce. Leadership commissioned this analysis to test a simple assumption. A strategic plan written before a labor shortage rarely survives contact with the shortage itself. Drawing on the American Hospital Association’s most recent environmental scan, the summary isolates workforce as the analytical lens because staffing now dictates capacity, quality, and margin at the same time (American Hospital Association, 2025). Readers should treat what follows as a diagnostic, not a finished plan, since later assessments will build the directional strategy in stages.
Why Strategic Planning Matters, Personally and Organizationally
Strategic planning holds personal weight for anyone accountable to a board that expects evidence before it approves spending. Reactive management burns credibility, and it burns cash. For the writer, the discipline of scanning, interpreting, and recommending sharpens judgment in a way that daily firefighting never does. Ginter, Duncan, and Swayne (2018) frame environmental analysis as the opening move of strategic management, the step that keeps every later decision anchored to real conditions rather than to habit. For Nor’easter, the stakes read plainly on the balance sheet, since labor absorbs roughly 60 percent of hospital operating expense and any staffing gap flows straight into overtime, agency premiums, and closed beds (American Hospital Association, 2025). A hospital that plans well can smooth those shocks. A hospital that does not will keep paying crisis rates for talent it should have retained. Strategic planning, in short, converts a recurring emergency into a managed variable.
Core Concepts of a Strategic Plan
Six concepts give a strategic plan its shape: vision, mission, objectives, strategy, approach, and tactics. Vision names the future the organization wants; mission states the work it does now; objectives translate both into measurable targets. Strategy sets the competitive logic, the approach describes how leaders will execute, and tactics carry the day-to-day actions that make the approach real. Ginter, Duncan, and Swayne (2018) argue that these elements fail when they drift apart, because a mission that promises broad community access loses meaning once staffing forces patient diversions. Alignment, then, is not a formality. It is the test of whether the plan describes the hospital that actually exists. Effective planning also runs on a cycle rather than a single event, and most health systems revisit the full plan every three to five years while reviewing objectives annually. That cadence lets a hospital respond to a labor market that shifts faster than any five-year document can anticipate.
Strategic Core Concepts Applied to Nor’easter
Nor’easter’s current plan, adopted in 2022, prioritized service-line expansion and market share. It underestimated the depth of the nursing and allied-health shortage that followed. The mission language, which commits the hospital to “compassionate, patient-centered care accessible to all members of our community,” now sits uneasily beside real diversions caused by insufficient nursing coverage. That gap between stated mission and daily operation signals a plan out of step with its environment. Clinician burnout compounds the problem, since exhausted staff leave at higher rates and drive up both vacancy and replacement cost (Rotenstein et al., 2023). Turnover intention among health workers rose sharply through the pandemic period and has not fully receded, which suggests Nor’easter faces a structural condition rather than a temporary dip (Poon et al., 2022). Objectives tied to growth therefore appear premature. The hospital cannot expand what it cannot staff, and that reality reorders every priority beneath the mission.
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Next Steps and Directional Pathways
Recommended next steps center on a workforce strategy that treats recruitment, retention, and role redesign as one connected problem rather than three separate hiring campaigns. Directional options for a hospital in this position usually fall into recognizable categories, and Nor’easter should weigh each against its capacity and market.
- Stabilization before growth: pause aggressive service-line expansion until vacancy rates fall below a defined threshold, protecting quality and safety.
- Targeted investment: fund technology that trims administrative burden, since documentation load correlates strongly with burnout and attrition (Rotenstein et al., 2023).
- Pipeline partnerships: formalize agreements with regional nursing schools to convert its teaching-hospital status into a reliable talent stream.
- Care-model redesign: deploy team-based staffing that extends scarce clinical expertise across more patients without eroding standards.
Sequencing matters here. Retention initiatives should precede recruitment spending, because filling a leaky bucket wastes both money and goodwill. The AHA scan reinforces this order, noting that satisfaction and workload redesign now shape retention more than compensation alone (American Hospital Association, 2025).
Analytical Tools for Deeper Assessment
Two established frameworks will structure the next phase of analysis. SWOT will map Nor’easter’s internal strengths, such as its teaching mission and regional reach, against weaknesses like an aging clinical workforce and thin float capacity. PESTEL will surface the external pressures, including reimbursement policy, regional wage competition, and demographic aging that raises demand while shrinking the labor pool. Used together, the two tools convert scan-level trends into hospital-specific decisions, and a follow-on TOWS matrix can then pair specific strengths against specific threats to generate concrete moves. Ginter, Duncan, and Swayne (2018) caution that tools inform judgment rather than replace it, so the outputs will feed leadership deliberation rather than dictate it. The result should be a workforce plan that reads as honest, measurable, and matched to the environment Nor’easter actually operates in.
Closing Assessment
Workforce pressure has moved from a line item to the central constraint on Nor’easter’s mission, and the hospital’s 2022 plan no longer reflects that shift. Strategic planning offers the mechanism to close the gap, provided leaders sequence retention ahead of growth and let evidence guide resource allocation. The analysis above gives the board a defensible starting point. Subsequent assessments will convert it into a full directional strategy.
References
American Hospital Association. (2025). 2026 environmental scan. https://www.aha.org/system/files/media/file/2025/12/Environmental-Scan-2026.pdf
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Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health care organizations (8th ed.). Wiley. https://www.wiley.com/en-us/The+Strategic+Management+of+Health+Care+Organizations%2C+8th+Edition-p-9781119349709
Poon, Y. S. R., Lin, Y. P., Griffiths, P., Yong, K. K., Seah, B., & Liaw, S. Y. (2022). A global overview of healthcare workers’ turnover intention amid the COVID-19 pandemic: A systematic review with future directions. Human Resources for Health, 20(1), Article 70. https://doi.org/10.1186/s12960-022-00764-7
Rotenstein, L. S., Brown, R., Sinsky, C., & Linzer, M. (2023). The association of work overload with burnout and intent to leave the job across the healthcare workforce during COVID-19. Journal of General Internal Medicine, 38(8), 1920–1927. https://doi.org/10.1007/s11606-023-08153-z
Swayne, L. E., Duncan, W. J., & Ginter, P. M. (2022). Strategic management of health care organizations (8th ed.). Wiley.
Note: Verify each DOI and URL through your library database before submission, since link paths and edition metadata occasionally change.
Next Assignment: Week 2 – Strategic Analysis and Competitive Positioning
MHA‑FPX5010 Assessment 2: Service Area Competitor Analysis and Strategic Positioning
Building upon the environmental scan analysis completed in Assignment 1, students will conduct a comprehensive service area competitor analysis for their selected health care organization. This assessment requires students to define the geographic service area, identify key competitors within that area, analyze competitor strengths and vulnerabilities, and assess how their organization’s strategic actions might impact competitive dynamics. Students will apply the strategic analysis tools introduced in Assignment 1 (SWOT, PESTEL) to evaluate their organization’s competitive position and develop recommendations for strengthening market position. The deliverable will be a 4-5 page strategic analysis report incorporating at least five scholarly sources and following APA formatting guidelines.
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