Financial or Economic Goal
For Part 2 of the Goals for Stevens District Hospital assignment, you will use the same format you used in Week Three. In this assignment, you will identify 3 additional goals that support the mission and vision of the hospital. For each goal, you will write a 260- to 350-word analysis based on your review of the data provided in the Stevens District Hospital strategic planning scenario and your SWOT analysis.
Financial or Economic Goal
Identify a clear, actionable, and measurable financial or economic goal for the organization that clearly supports the mission and vision.
Analyze how this goal supports the mission and vision of the hospital.
Explain how you would measure progress toward the goal.
- Discuss milestones necessary for progress.
- Discuss the criteria you would use to measure that the goal was completed.
Legal or Regulatory Goal
Identify a clear, actionable, and measurable legal or regulatory goal for the organization that clearly supports the mission and vision.
Analyze how this goal supports the mission and vision of the hospital.
Explain how you would measure progress toward the goal.
- Discuss milestones necessary for progress.
- Discuss the criteria you would use to measure that the goal was completed.
Risk or Quality Management Goal
Identify a clear, actionable, and measurable risk or quality management goal for the organization that clearly supports the mission and vision.
Analyze how this goal supports the mission and vision of the hospital.
Explain how you would measure progress toward the goal.
- Discuss milestones necessary for progress.
- Discuss the criteria you would use to measure that the goal was completed.
References (format using correct APA guidelines)
Cite 4 peer-reviewed, scholarly, or similar references to support your assignment.
Use correct APA in-text citation guidelines and include references above.
Stevens District Hospital & Strategic Planning
Kevin Hawkins
University of Phoenix
Stevens District Hospital & Strategic Planning
Introduction
Strategic planning plays critical roles in the growth and success organizations, especially in the ever-increasing competitive business environment. Through the strategic planning process, an organization is able to set priorities, mobilize resources, strengthen organizational operations, ensuring team members and other key stakeholders are working toward attainment of common goals as well as creating mechanisms of monitoring progresses made. Effective strategic planning and management involve articulation of growth opportunities and ways of harnessing such opportunities. Stevens District Hospital is one of the largest healthcare facility which is not profit-motivated (Kaissi & Begun, 2008). The accreditation and reaccreditation of the healthcare facility have been mainly based on the effective quality management practices put in place by the top management. Therefore, the purpose of this analysis paper is to discuss the strategic analysis of the Stevens District Hospital as discussed below;
Strategic Planning
Generally, strategic planning is critical in providing organizations with a sense of direction and outlines measurable outcomes. Additionally, the day-t-day management and operational decisions are best made using strategic planning as a tool. In other words, an organization is forced to think through its strategic objectives while putting up quantifiable benchmarks for evaluating the outcomes (Kaissi & Begun, 2008).
There are several advantages and disadvantages of conducting SWOT analysis, especially the one involving an individual compared to a group of stakeholders-based analysis. Conducting SWOT analysis by an individual can be advantageous in term of convenience and time required to complete such projects. However, it may not provide greater insights regarding key elements of SWOT analysis. Conversely, carrying out SWOT analysis with a group of stakeholders can be critical in providing greater insight with regard to strengths, weaknesses, and threats as well as opportunities. This can be important in identifying possible of making necessary adjustments. However, this approach can be time-consuming due to consultations with the key stakeholders including taking into consideration their views and objections. Therefore, the approach used in conducting strategic analysis is critical in improving operation and management of Stevens District Hospital (Kaissi & Begun, 2008).
Purpose of Conducting SWOT Analysis
The need for conducting SWOT analysis for Stevens District Hospital. The healthcare facility has had tremendous improvements in the quality of healthcare services it provides to the clients. Despite these improvements, there is a need to harness the existing opportunities to facilitate further growth and business success. This is critical in mobilizing the existing human and financial resources in the achievement of fundamental growth. Additionally, the outcome of the assessment can be used in strengthening the operations of the facility as well as getting the team members and other stakeholders onboard in the attainment of organizational goals and objectives. These can be achieved through effective communication with stakeholders and employees of the healthcare facility. Therefore, performing the strategic analysis is one of the most important management tools (Perera & Peiró, 2012). The following is a summary of SWOT analysis of Stevens District Hospital.
Table 1: SWOT Analysis
| Analysis of existing information from Stevens District Hospital strategic planning scenario | Perceived strength (internal) |
| -Capacity for facility upgrade.
-Financial and human resources. |
-The facility has developed capacity for facility upgrade to cope with competitors.
-The facility has the required financial and human resources required for the expansion. |
| Analysis of existing information from Stevens District Hospital strategic planning scenario | Perceived weakness (internal) |
| -Aging Equipment
-Weak market image -Lower Quality Scores |
-Most of the equipment used by healthcare facility are outdated.
-The healthcare has not been able to establish strong positive market image – Healthcare services provided by the health center are not of exceptional standards |
| Analysis of existing information from Stevens District Hospital strategic planning scenario | Perceived opportunity (external) |
| -Technological advancement
-Large market share |
-The healthcare facility can leverage the benefits of technology in providing medical services to their clients.
-The hospital is located in Jefferson City, which is a city of 50,000 with 80,000 in the regional market. |
| Analysis of existing information from Stevens District Hospital strategic planning scenario | Perceived threat (external) |
| -Competition from other healthcare facility.
-Capital-intensive expansion. – |
-Stevens District Hospital faces stiff competition from other healthcare providers such as Hannover County Hospital
-The healthcare facility has no sufficient capital for expansion of its services due to lack of funding from government agencies. |
References
Kaissi, A. A., & Begun, W. J. (2008). Strategic planning processes and hospital financial performance. Journal of Healthcare Management, 53(3), 197-208.
Perera, D. F., & Peiró, M. (2012). Strategic planning in healthcare organizations. Revista Española de Cardiología (English Edition), 65(8), 749-754.
Work Sheet
Kevin Hawkins
University of Phoenix
Stevens District Hospital formulated a goal based on technology that will help the organization to attain its vison. The hospital aimed at upgrading the quality score of HCAPS (Hospital Consumer Assessment of Healthcare Providers and Systems) in all six norms. The hospital managed to improve HCAPS scores in four of the norms whereby the two elements, inpatient satisfaction, and primary care patient satisfaction were not attained. By attaining all the scores in the HCAPS, this will help the organization create an efficient physician practice system that will allow them to offer a variety of services to its clients therefore, helping to achieve its goal of improving the quality care and expanding its services in a wide range.
In order to determine the progress of the organization, I would consider whether Steven District Hospital has been able to accomplish some of the desired goals. First milestone necessary for the progress is technology. A competing hospital should be technologically fabricated with devices and equipment used in offering services. It should adopt the e-visit way of treatments of patients, as it is simplified and efficient way because patients can be treated from any region at any time.
The norm that I would use to measure the goal attainment is the number of patients that were served with the organization. By implementing new technology in hospitals, patients will be more comfortable with the new system used. Individually, patients will be able to manage their own health states when they get informed how the devices work. Secondly, Professionals will be able to come up with solutions easily. Thirdly, Technology advancement in an organization will ensure easy communication and interaction with the public.
In conclusion, Stevens District Hospital visions can be achieved only if the organization implements the modern scientific technology in offering its services in treating patients. These activities will ensure quality services are offered and produce greater outcomes in future.
References
Morilla, M. D. R., Sans, M., Casasa, A., & Giménez, N. (2017). Implementing technology in healthcare: insights from physicians. BMC medical informatics and decision making, 17(1), 92.
(“HCS 499 Capstone: Goals for Stevens District Hospital Healthcare Capstone Paper Help – Precision Essays”, 2018)
HCS 499 Capstone
Strategic Planning Scenario
Background
Stevens District Hospital is a 162-bed acute care hospital that is qualified as a not for profit facility. The hospital was originally a county-owned facility and its status was transferred to an independent facility three years ago. The hospital receives no external funding from government agencies for operations. The hospital is accredited by The Joint Commission and received reaccreditation during their triannual survey last year. The hospital has an aggressive quality management program and a low volume of medical malpractice claims. The hospital is located in Jefferson City, which is a city of 50,000 with 80,000 in the regional market. The hospital provides a general range of acute care services, including medical/surgical, rehab, and emergency care.
Current Performance Analysis
Mission and Vision
Our mission: To improve health by providing high-quality care, a comprehensive range of services, and exceptional service.
Our vision: Stevens District Hospital and its affiliates will be the health care provider of choice for physicians and patients. Our five year vision is to create a large, multispecialty physician practice system that would include at least six family practice physicians and specialists in cardiology, oncology, and women’s services. Currently, the hospital employs three family practice physicians, one obstetrician, one medical oncologist, and one non-invasive cardiologist.
Previous Strategic Plan Review
| Goal | Accomplishments |
| Increase market share by recruiting three family practice physicians. | The hospital was able to recruit only one family practice physician to increase primary care market this past year. The limited number of state medical school graduates makes local recruitment difficult. |
| Improve quality HCAPS scores in all six criteria to a baseline of the 85th percentile. | The hospital improved HCAPS scores in four of six criteria. Lagging elements in HCAPS scores are inpatient patient satisfaction and primary care patient satisfaction. |
Market Forces Affecting the Hospital
Volumes
Patients
The continued growth of chronic disease will require changes to the care management model.
Percent of Population by Age
| Five Years Ago | Five Years From Now | |
| Under 18 | 24 | 18 |
| 18 to 44 | 46 | 32 |
| 45 to 65 | 26 | 30 |
| Over 65 | 4 | 20 |
More than 53 percent of residents have at least some college education, with just over 29 percent having an associate, bachelor’s, or graduate degree. More than 90 percent of residents have at least a high school diploma.
The average unemployment rate in the county is 9.9 percent:
Market share distribution percentage with a major competitor.
| Five Years Ago | Last Year | |
| Stevens District Hospital | 48 | 35 |
| Competitor | 30 | 43 |
| Out of County Hospitals | 22 | 22 |
Patient Origin by Zip Code
Payment
There will be continued focus on pay for performance and increased wellness programs. The Affordable Care Act is creating more covered lives; however, there are often high deductibles.
The median household income for county residents is $59,548. On average, households in the county earn more than the state median household income of $44,446 and more than the national average of $53,650. The addition of a new automotive manufacturing plant to the local market this coming year is projected to add 1,500 production line jobs and 300 administrative jobs by year end. Median income for the production positions is estimated at $45,000 and will provide health, vision, and dental insurance benefits.
As part of your review of this data, consider that a portion of the population will become Medicare eligible, the addition of manufacturing positions that include benefits will increase commercial insurance coverage, and changes from the Affordable Care Act will increase the number of patients in the market with insurance coverage.
Employers
There is expected growth in large employers with the addition of the automotive factory in the northwest sector of the county.
Physicians
The continued shortage of medical staff, especially in orthopedics, oncology, and primary care, will require increased recruitment efforts.
Competitors
Hanover County Hospital, which is the other hospital in the county, has an updated facility that has drawn more market share to its facility.
| Competitor | Key Areas of Competition | New Programs and Facilities | Risk to Market Share |
| Primary Competitors | |||
| Hanover County Hospital | Facility upgrade
Quality scores |
Significant renovation of core hospital to update aesthetics
Added new wide-bore MRI machine last year Reaches the 95th percentile in five of six HCAPS categories |
Drawing patients to newer facility
Accommodates heavier patients Patient perception of higher quality and patient satisfaction |
| Medical Center in County South of Stevens | Physician clinics
Financial stability |
E-visits with specialists
Low debt and high cash on hand |
Drawing patients out of primary and specialty care at Stevens
Ability to cash flow projects |
| Secondary Competitors | |||
| Retail Pharmacy Instant Clinic | Low acuity office visits | Pharmacy added instant clinic in north end of county 6 months ago | Loss of patients from primary care physicians’ practices |
Technology
A competing hospital has added e-visits for physician practices, which is causing a shift of patients to the competitor hospital’s physician practices.
Regulatory Changes
Health care reform through the Affordable Care Act has increased the number of patients with some form of insurance payment. These patients are now seeking care in greater numbers from a primary care physician. Stevens District Hospital struggles with accommodating patient scheduling requests to establish care with a primary care physician.
Plan
Planning Components Explanation |
|||
| Goal | Objective | Actions | |
| Definition | Organization goals that cover broad strategic issues, such as quality, finances, growth | Broad action items that address organizational goals, such as increasing market share, increased use of technology, increased physician satisfaction | Action item that meets an objective, such as implementing EMR, renovating physician lounge, increasing marketing for specific products |
| Examples | – Improve HCAPS scores by 5%
– Improve operating margin by 3% – Increase market share in 96103 zip code by 5% |
– Improve emergency department patient satisfaction survey by 5%
– Grow urgent care visits by 10% |
– Implement urgent care center in north zip code
– Purchase tablets for physicians for EMR rounding |
| Measurement | – % increase in operating margin
– % change in market share |
– % change in ED satisfaction survey
– % change in urgent care visits |
– Number of patient visits at new urgent care center
– % increased use of EMR |
Financial Summary
| This year | Last year | |
| Operating Revenues | ||
| Net revenues from services to patients | 343,737,280 | 344,726,245 |
| Other operating revenues | 16,846,309 | 20,311,534 |
| Total operating revenues | 360,583,589 | 365,037,779 |
| Operating Expenses | ||
| Salaries and benefits | 192,053,379 | 182,853,245 |
| Supplies and other expenses | 130,173,477 | 135,560,131 |
| Depreciation | 18,969,799 | 20,644,157 |
| Interest | 2,695,623 | 2,226,437 |
| Foundation | 628,184 | 1,182,308 |
| Total operating expenses | 344,520,462 | 342,466,278 |
| Income from operations | 16,063,127 | 22,571,501 |
96101 is Stevens District Hospital zip code
94963 is major competitor hospital zip code
Projected Payer Mix 5-years
Current Payer Mix
Percentage of Population by Insurance
_1521445885.xls
Chart1
| 0.42 | 0.42 |
| 0.12 | 0.12 |
| 0.16 | 0.16 |
| 0.2 | 0.2 |
Sheet1
| Column1 | Column2 |
| 96101 | 42% |
| 93921 | 12% |
| 92106 | 16% |
| 94963 | 20% |
_1521446193.xls
Chart1
| 4458 | 5147 |
| 20930 | 26292 |
| 405 | 472 |
| 6365 | 7284 |
Sheet1
| Last year | This year | |
| Admission | 4458 | 5147 |
| ER visits | 20930 | 26292 |
| Deliveries | 405 | 472 |
| Surgeries | 6365 | 7284 |
_1521447893.xls
Chart1
| 0.35 |
| 0.3 |
| 0.24 |
| 0.09 |
| 0.02 |
Sheet1
| US Age Distribution 2010 | |
| Medicaid | 35% |
| Medicare | 30% |
| Commercial | 24% |
| Uninsured | 9% |
| Other | 2% |
| To resize chart data range, drag lower right corner of range. |
_1521445882.xls
Chart1
| 0.15 | 0.26 |
| 0.05 | 0.12 |
| 0.12 | 0.22 |
Sheet1
| 5 yrs ago | 5 yrs ahead | |
| Obesity | 15% | 26% |
| Diabetes | 5% | 12% |
| Heart Disease | 12% | 22% |