Strategic Planning in Healthcare Account

Healthcare costs are increasing at a significant rate, and the industry needs leaders who can allocate resources more efficiently. Research shows that, taken as a group, hospitals are one of the largest employers in the country, and they are critical to attracting new business to a geographic area. Healthcare also contributes to the United States’ economic and social well-being; 18.5 million Americans were employed in healthcare in 2015 (BLS 2015). The US hospital industry comprises a wide range of hospitals of varying size (see Exhibits 1.1 and 1.2)Strategic Planning in Healthcare Account.

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Organizations, like people, have personalities. This personality develops over time and is shaped by the organization’s history, the environment in which it operates, and the beliefs of its key individuals. These factors are reflected in the organization’s mission, vision, and culture.

The healthcare field changes constantly. As a result, healthcare organizations, like individuals, must continually adapt to survive and prosper. They must develop a culture that supports change and periodically evaluate their mission, vision, and values to make sure they are relevant in the current environment. This evaluation provides a foundation for the strategic planning process.

Growth is important to an organization’s future success. It helps the organization recruit physicians and provides greater economies of scale (see Highlight 1.1), which can result in increased profitability. To grow, organizations need effective infrastructures, high- performance work processes, and skilled personnel, and they must provide their employees with appropriate incentives. Most important to growth is good strategy development, which is a product of excellent leadership and diversity of individuals and expertise. Stra- tegic planning is an effective way for organizations to improve their allocation of resources (see Highlight 1.2). Resources need to be allocated in a way that allows organizations to provide healthcare services as efficiently as possible. Research has shown that the efficient allocation of healthcare resources in the production process is linked to improved quality (Vigen, Duncan, and Coughlin 2013). The following section discusses the role of hospital leaders, particularly their function in strategic planning.

Infrastructure

Underlying➤foundation➤

or➤basic➤framework.

Incentive

Reward➤that➤motivates➤

someone➤to➤take➤action➤

or➤perform,➤such➤as➤

a➤bonus➤payment➤

awarded➤for➤achieving➤

a➤goal.

exHIbIt 1.1 US Hospitals by Category, 2005 to 2014Government, federal

Not-for-profit

For-profit

Government, nonfederal

229

2005Type 2014 Change (no.) Change (%)

3,204 3,118 –86 –2.7

12.21811,6611,480

1,435 1,294 –141 –9.8

210 –19 –8

Total –1–656,2836,348

Source:➤Data➤from➤AHA➤(2005,➤2014).

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EBSCO : eBook Collection (EBSCOhost) – printed on 4/30/2019 4:21 PM via WESTERN KENTUCKY UNIV AN: 1843079 ; Harrison, Jeffrey P..; Essentials of Strategic Planning in Healthcare Account: s8993066.main.ehost Strategic Planning in Healthcare Account

defInItIon of leadersHIp At the most basic level, leadership is the ability to guide, influence, and inspire individuals to meet goals (for the purposes of this book, organizational goals). Competency models that focus on leadership in the healthcare environment have been developed by many organizations, including the Healthcare Leadership Alliance (HLA) and the National Center for Healthcare Leadership (NCHL; see Highlight 1.3). Based on the most current research, these models identify behav- iors and technical skills (competencies) that characterize outstanding leadership performanceStrategic Planning in Healthcare Account.

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