Updated: Aug 1, 2019
The challenges of the healthcare industry today require hospitals and health systems to apply all available resources to a strategy toward reducing cost and improving quality.
Healthcare Business Strategy
This is a long-term method that concentrates on what business units require to compete in the marketplace. It defines the game plan the business has chosen to maximize its long-term value to clients, and it outlines the resource deployments crucial to succeed. According to Vadarajan & Clark, the business strategy converges on the measures business units need to put in place to compete in the healthcare marketplace.
Managers do not choose the development plan of action articulated in the strategy in an emptiness. They are obtained from a meticulous process; a full review of strategy growth has exceeded the extent of this text. However, it is essential to understand the basic framework utilized to improve strategies. It usually begins with a broad knowledge of the industry and the environment in which it operates a business.
This process is identified as a SWOT analysis.
SWOT Analysis Identifies the business’s internal strengths (S), weaknesses (W), evaluates the environmental opportunities (O), and threats (T). SWOT Analysis helps to leverage the business’s inherent abilities and to benefit from market possibilities while mitigating external risks. This matching scheme encourages the firm to assess the viability of multiple approaches and place itself fairly in the marketplace.
SWOT Analysis to Help Identify Prospective Strategies.
The possible courses of action are further estimated through the knowledge of the various functional sources to support them. Top management (CEO and other senior-level executives) ultimately chooses the strategy that produces the best fit between the opportunities in the healthcare environment and the organization’s strengths and practical support. All functional policies are relatively substantial. However, as our focus is on operations, let us not forget to take a close look at the competing priorities in operations strategy.
• Quality: Competing on quality means accomplishing better
patient outcomes (clinical and experiential) than those produced
by your competition.
• Cost: Competing on cost refers to the ability to offer services
at lower prices than those charged by the competition.
• Delivery: Competing on delivery refers to the ability to
provide services on time (on-time delivery) or to deliver the
services faster (fast delivery) than the competition.
• Flexibility: Competing on flexibility refers to the ability to
respond to changes with minimal penalties and uniform
outcomes for services.
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