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Posted: March 3rd, 2023
A Comprehensive Analysis of Strategic Management in Healthcare
A Comprehensive Analysis of Strategic Management in Healthcare: A Case Study of Huntington Hospital
Introduction
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In recent times, healthcare institutions have experienced several changes, from evolving regulations to an ever-growing demand for better quality care. As a result, healthcare organizations have to take a more strategic approach to remain relevant and offer high-quality care. Huntington Hospital, located in Pasadena, California, is a 625-bed non-profit medical center that was named one of the top-performing hospitals in 2012 by U.S. News and World Report. Jim Noble, the executive VP=COO/CFO of Huntington Hospital, desired to improve the Business Services Office’s operations while maintaining high-quality care. In response, he hired Kim Markey, who utilized an external analysis approach to identify areas of improvement for the organization.
External Analysis in Healthcare
An External Analysis is a strategic management approach utilized by healthcare organizations to identify opportunities and threats in their environment. The primary objective of the External Analysis is to identify current and future issues that may affect the organization. The six steps of an external analysis include: Organize the External Analysis Process, Scan the General Environment, Health Care System, and Service Area, Monitor and Confirm External Issues, Forecast External Issues, Assess External Issues, and Complete an Issue Map (Ginter et al., 2018).
Organize the External Analysis Process
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The first step in the External Analysis process involves organizing the analysis approach by identifying the organization’s goals and determining how changes in one area may impact other areas. Kim Markey identified the need to manage the metrics better and looked into the departments she oversaw, including Admitting, Business Services, Data Services, Medical Records, and Revenue Integrity (Drabkin & Soule, 2015).
Scan the General Environment, Healthcare System, and Service Area
In the second step of the External Analysis process, Markey conducted a scan of the general environment, healthcare system, and service area to identify the external organizations that are pertinent to the issue. Markey looked into the barriers patients experienced in each department and staff’s mindset in those departments to identify the overall issues affecting the organization’s goals.
Monitor and Confirm External Issues
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The third step of the External Analysis process involves monitoring and confirming the external issues identified in the previous steps. In this step, Markey conversed with staff and managers to identify issues such as low morale, tense and stressed staff, and managers not working together cohesively (Drabkin & Soule, 2015).
Forecast External Issues
In the fourth step, Markey forecasted and anticipated external issues by identifying what was causing the low morale, stress, and tenseness of the staff. Through her conversations and observations, she identified that management was over-managing employees, and there was a lack of trust between managers and staff.
Assess External Issues
The fifth step in the External Analysis process is assessing external issues by making sense of all the observed and forecasted issues and determining how the changes Markey makes will affect the organization. Markey improved staff morale by reducing the rigid management approach to clocking in or out and utilized a suggestion box to hear from staff and managers.
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Complete an Issue Map
Finally, in the sixth step, Markey created an issue map that identified the issues, who and where they are, and how they affect the organization from staff morale to the financial impact. The issue map allowed Markey to create a plan that aligned with the organization’s mission, values, and goals (Drabkin & Soule, 2015).
Conclusion
The External Analysis approach is a strategic management tool that can be utilized in healthcare organizations to identify current and future issues that may affect the organization. Huntington Hospital utilized the External Analysis approach to improve its Business Services Office operations while maintaining high-quality care. Through the External Analysis process,
A Comprehensive Analysis of Strategic Management in Healthcare: A Case Study of Huntington Hospital
Introduction
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In recent times, healthcare institutions have experienced several changes, from evolving regulations to an ever-growing demand for better quality care. As a result, healthcare organizations have to take a more strategic approach to remain relevant and offer high-quality care. Huntington Hospital, located in Pasadena, California, is a 625-bed non-profit medical center that was named one of the top-performing hospitals in 2012 by U.S. News and World Report. Jim Noble, the executive VP=COO/CFO of Huntington Hospital, desired to improve the Business Services Office’s operations while maintaining high-quality care. In response, he hired Kim Markey, who utilized an external analysis approach to identify areas of improvement for the organization.
External Analysis in Healthcare
An External Analysis is a strategic management approach utilized by healthcare organizations to identify opportunities and threats in their environment. The primary objective of the External Analysis is to identify current and future issues that may affect the organization. The six steps of an external analysis include: Organize the External Analysis Process, Scan the General Environment, Health Care System, and Service Area, Monitor and Confirm External Issues, Forecast External Issues, Assess External Issues, and Complete an Issue Map (Ginter et al., 2018).
Organize the External Analysis Process
The first step in the External Analysis process involves organizing the analysis approach by identifying the organization’s goals and determining how changes in one area may impact other areas. Kim Markey identified the need to manage the metrics better and looked into the departments she oversaw, including Admitting, Business Services, Data Services, Medical Records, and Revenue Integrity (Drabkin & Soule, 2015).
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Scan the General Environment, Healthcare System, and Service Area
In the second step of the External Analysis process, Markey conducted a scan of the general environment, healthcare system, and service area to identify the external organizations that are pertinent to the issue. Markey looked into the barriers patients experienced in each department and staff’s mindset in those departments to identify the overall issues affecting the organization’s goals.
Monitor and Confirm External Issues
The third step of the External Analysis process involves monitoring and confirming the external issues identified in the previous steps. In this step, Markey conversed with staff and managers to identify issues such as low morale, tense and stressed staff, and managers not working together cohesively (Drabkin & Soule, 2015).
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Forecast External Issues
In the fourth step, Markey forecasted and anticipated external issues by identifying what was causing the low morale, stress, and tenseness of the staff. Through her conversations and observations, she identified that management was over-managing employees, and there was a lack of trust between managers and staff.
Assess External Issues
The fifth step in the External Analysis process is assessing external issues by making sense of all the observed and forecasted issues and determining how the changes Markey makes will affect the organization. Markey improved staff morale by reducing the rigid management approach to clocking in or out and utilized a suggestion box to hear from staff and managers.
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Complete an Issue Map
Finally, in the sixth step, Markey created an issue map that identified the issues, who and where they are, and how they affect the organization from staff morale to the financial impact. The issue map allowed Markey to create a plan that aligned with the organization’s mission, values, and goals (Drabkin & Soule, 2015).
Conclusion
The External Analysis approach is a strategic management tool that can be utilized in healthcare organizations to identify current and future issues that may affect the organization. Huntington Hospital utilized the External Analysis approach to improve its Business Services Office operations while maintaining high-quality care. Through the External Analysis process,
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