The Strategic Management of Health Care Organizations

Strategic Management of Health Care Organizations Contents Cases Preface Features of the Text Retained Features New Features Organization of the Text To the Students: Why This Book About Strategic Management Is Important The Author Team Acknowledgments Chapter 1 The Nature of Strategic Management Why the Nature of Strategic Management Is Important Strategic Management Competency Managing in a Dynamic Industry The Nature of Health Care Change Coping with Change The Foundations of Strategic Management Long-Range Planning to Strategic Planning Strategic Planning to Strategic Management Strategic Management in the Health Care System Strategic Management Versus Health Policy The Dimensions of Strategic Management Combining the Analytical and Emergent Views Strategic Thinking Strategic Planning Strategic Momentum The Benefits of Strategic Management What Strategic Management Is Not A Systems Perspective The Level and Orientation of the Strategy The Importance of Leadership Leadership Roles throughout the Organization Chapter Summary Practical Lessons for Health Care Strategic Thinkers Questions for Class Discussion Notes Chapter 2 External Analysis Why External Analysis Is Important Strategic Management Competency The External Nature of Strategic Management The Goals of External Analysis The Limitations of External Analysis The Process of External Analysis Step 1: Organize the External Analysis Process Step 2: Scan the General Environment, Health Care System, and Service Area Step 3: Monitor and Confirm External Issues Step 4: Forecast External Issues Step 5: Assess External Issues Select the Strategic Thinking Framework Step 6: Complete an Issue Map Strategic Momentum: Validating the Strategic Assumptions Chapter Summary Practical Lessons for Health Care Strategic Thinkers Questions for Class Discussion Notes Chapter 3 Service Area Competitor Analysis Why Service Area Competitor Analysis Is Important Strategic Management Competency Further Focus within External Analysis A Process for Service Area Competitor Analysis An Application of Service Area Competitor Analysis Step 1: Review of External Analysis Step 1: Review of External Analysis – Plastic Surgery in Charlotte, NC Step 2: Conduct Service Area Structural Analysis Step 2: Service Area Structural Analysis – Plastic Surgery Step 3: Conduct Competitor Analysis Step 3: Conduct Competitor Analysis – Plastic Surgery Step 4: Analyze Critical Success Factors Step 4: Analyze Critical Success Factors – Plastic Surgery Step 5: Map Strategic Groups Step 5: Map Strategic Groups – Plastic Surgery Step 6: Assess Likely Competitor Actions or Responses Step 6: Assess Likely Competitor Actions or Responses – Plastic Surgery Step 7: Synthesizing the Analyses Step 7: Synthesizing the Analyses – Plastic Surgery Obstacles to Effective Service Area Competitor Analysis Strategic Momentum: Validating the Strategic Assumptions The Use of External Analysis and Competitor Analysis Chapter Summary Practical Lessons for Health Care Strategic Thinkers Notes Chapter 4 Internal Analysis and Competitive Advantage Why Internal Analysis and Competitive Advantage Are Important Strategic Management Competency The Process for Internal Analysis and the Search for Competitive Advantage Step 1: Review Results of External Analysis and Service Area Competitor Analysis Step 2: Organize the Internal Analysis Process – Using the Value Chain Step 3: Identify Organizational Strengths and Weaknesses Step 3: Identify Organizational Strengths and Weaknesses – Hill-Rom Step 4: Determine Competitive Advantages and Disadvantages Step 4: Determine Competitive Advantages and Disadvantages – Hill-Rom Step 5: Synthesize and Determine the Implications of the Competitive Advantages and Disadvantages Step 5: Synthesize and Determine the Implications of the Competitive Advantages and Disadvantages – Hill-Rom A Final Challenge Strategic Momentum Chapter Summary Practical Lessons for Health Care Strategic Thinkers Questions for Class Discussion Notes Chapter 5 Directional Strategies Why Directional Strategies Are Important Strategic Management Competency Directional Strategies The Process for Establishing Directional Strategies Step 1: Review Results of Situational Analysis Step 2: Develop a Statement of Mission Step 3: Develop a Statement of Vision Step 4: Develop a Statement of Values as Guiding Principles Step 5: Develop Strategic Goals Roles and Responsibilities of Boards of Directors (or Trustees) in Strategic Management Health Care Performance and the Usual Suspects Board Process: Missing Link? Strategic Momentum – Evaluating Directional Strategies Chapter Summary Practical Lessons for Health Care Strategic Thinkers Questions for Class Discussion Notes Chapter 6 Identifying Strategic Alternatives Why Identifying Strategic Alternatives Is Important Strategic Management Competency The Process for Identifying Strategy Alternatives Step 1: Understand the Decision Logic of Strategy Development Step 2: Understand the Role of Directional Strategies Step 3: Understand Adaptive Strategy Alternatives Expansion of Scope Strategies Reduction of Scope Strategies Maintenance of Scope Strategies Step 4: Understand Market Entry/Exit Strategy Alternatives Purchase Strategies Cooperation Strategies Development Strategies Market Exit Strategies Market Entry/Exit Strategy Linkage Step 5: Understand Competitive Strategy Alternatives Strategic Posture Positioning Strategies: Marketwide or Focus Step 6: Understand Combination Strategies Chapter Summary Practical Lessons for Health Care Strategic Thinkers Questions for Class Discussion Notes Chapter 7 Evaluation of Alternatives and Strategic Choice Why Evaluation of Alternatives and Strategic Choice Are Important Strategic Management Competency A Process for the Evaluation of the Alternatives Step 1: Link Strategy with Situational Analysis Step 2: Evaluate and Select Adaptive Strategies Step 3: Evaluate and Select Market Entry/Exit Strategies Step 4: Evaluate and Select Competitive Strategies Step 5: Synthesize and Identify Implications of Strategy Choices – Strategy Map Strategy Map: An Example Strategic Momentum: Adaptive, Market Entry/Exit, and Competitive Strategies Chapter Summary Practical Lessons for Health Care Strategic Thinkers Questions for Class Discussion Notes Chapter 8 Value-Adding Service Delivery Strategies Why Value-Adding Service Delivery Strategies Are Important Strategic Management Competency Implementation Strategies Strategies Based on the Value Chain Decision Logic for the Value-Adding Service Delivery Strategies Process for Developing Service Delivery Strategies Step 1: Identify the Service Delivery Requirements of the Strategy and Service Delivery Value-Adding Potential The Value-Adding Service Delivery Strategies Potential Pre-Service Delivery Strategies Point-of-Service Delivery Strategies After-Service Strategies Step 2: Compare the Strategy Requirements with the Results of the Service Delivery Internal Analysis Step 3: Decide to Maintain or Change Pre-Service Delivery Step 4: Decide to Maintain or Change Point-of-Service Step 5: Decide to Maintain or Change After-Service Step 6: Provide Guidance to Organizational Units Strategic Momentum: Service Delivery Strategies Chapter Summary Practical Lessons for Health Care Strategic Thinkers Questions for Class Discussion Notes Chapter 9 Value-Adding Support Strategies Why Value-Adding Support Strategies Are Important Strategic Management Competency Implementing Support Strategies Decision Logic for the Value-Adding Support Strategies Process for Developing Support Strategies Step 1: Identify the Support Requirements of the Strategy and Support Value-Adding Potential Value-Adding Support Strategies Potential Organizational Culture Strategies Organizational Structure Strategies Strategic Resources Strategies Step 2: Compare the Strategy Requirements with the Results of the Support Activities Internal Analysis Step 3: Decide to Maintain or Change Organizational Culture Step 4: Decide to Maintain or Change the Organization Structure Step 5: Decide to Maintain or Change Strategic Resources Step 6: Provide Guidance to Organizational Units Strategic Momentum: Support Strategies Chapter Summary Practical Lessons for Health Care Strategic Thinkers Questions for Class Discussion Notes Chapter 10 Communicating Strategy and Developing Action Plans Why Communicating the Strategy and Developing Action Plans Are Important Strategic Management Competency Implementation Through Action Plans The Level and Orientation of the Strategy Decision Logic for Developing Action Plans Action Plan Development Responsibilities Communicating Strategy to Initiate Action Planning The Process of Developing Action Plans The Process of Developing Action Plans – Cardiac Rehab Example Step 1: Review the Broader Strategic Decisions Step 1: Review the Broader Strategic Decisions – Cardiac Rehab Lab Step 2: Set Unit Objectives Step 2: Set Unit Objectives – Cardiac Rehab Lab Step 3: Identify Actions Required to Accomplish Unit Objectives Step 3: Identify Actions Required to Accomplish Unit Objectives – Cardiac Rehab Lab Step 4: Set Timelines to Accomplish Each Action Step 4: Set Timelines – Cardiac Rehab Lab Step 5: Assign Responsibility to Accomplish Each Action Step 5: Assign Responsibility – Cardiac Rehab Lab Step 6: Determine Resources Requirements to Accomplish Each Action Step 6: Determine Resources Requirements – Cardiac Rehab Lab Step 7: Determine How Results will be Measured Step 7: Determine How Results will be Measured – Cardiac Rehab Lab Managing the Strategic Momentum Focusing on Strategy through Implementation: A Balanced Scorecard Approach Implementation Challenges Contingency Planning Strategic Momentum: A New Beginning The Map and Compass Chapter Summary Practical Lessons for Health Care Strategic Thinkers Questions for Class Discussion Notes Resource 1 Analyzing Strategic Health Care Cases An Overview of Case Analysis Cases, Strategic Management, and Health Care Organizations Risk Taking in Case Analysis Solving Case Problems Alternative Perspectives: Passion or Objectivity Reading the Case Gathering Information Case Analysis Using the Strategic Thinking Maps Tips on Surfacing the Issues Tips on Analyzing the Situation Tips on Formulating the Strategy Tips on Developing Implementation Strategies Making Recommendations Finalizing the Report Conclusions Resource 2 Health Care Organization Accounting, Finance, and Performance Analysis Basis of Accounting Financial Reporting The Balance Sheet/Statement of Financial Position Assets Liabilities and Equity/Net Assets The Income Statement/Statement of Activities The Statement of Cash Flows Financial Performance Analysis Financial Forecasting Notes Resource 3 Health Care Acronyms Resource 4 Glossary of Strategic Management Terms Index EULA

A comprehensive guide to effective strategic management of health care organizations.

Strategic Management of Health Care Organizations provides essential guidance for leading health care organizations through strategic management. This structured approach to strategic management examines the processes of strategic thinking, consensus building and documentation of that thinking into a strategic plan, and creating and maintaining strategic momentum - all essential for coping with the rapidly evolving health care industry. Strategic Management of Health Care Organizations fully explains how strategic managers must become strategic thinkers with the ability to evaluate a changing industry, analyze data, question assumptions, and develop new ideas. The book guides readers through the strategic planning process demonstrating how to incorporate strategic thinking and create and document a clear and coherent plan of action. In addition, the all-important processes of creating and maintaining the strategic momentum of the organization are fully described. Finally, the text demonstrates how strategic managers in carrying out the strategic plan, must evaluate its success, learn more about what works, and incorporate new strategic thinking into operations and subsequent planning.

This strategic management approach has become the de facto standard for health care management as leadership and strategic management are more critical than ever in coping with an industry in flux. This book provides heath care management students as well as health care administrators with foundational guidance on strategic management concepts and practices, tailored to the unique needs of the health care industry. Included are a clear discussion of health services external analysis, organizational internal analysis, the development of directional strategies, strategy alternative identification and evaluation, and the development and management of implementation strategies providing an informative and insightful resource for anyone in the field.

This new eighth edition has been fully updated to reflect new insights into strategic thinking, new methods to conceptualize and document critical environmental issues, practical steps for carrying out each of the strategic management processes, industry and management essentials for strategic thinkers , and new case studies for applying the strategic management processes. More specifically, readers of this edition will be able to:

• Create a process for developing a strategic plan for a health care organization.
• Map and analyze external issues, trends, and events in the general environment, the health care system, and the service area.
• Conduct a comprehensive service area competitor analysis.
• Perform an internal analysis and determine the competitive advantages and competitive disadvantages.
• Develop directional strategies.
• Identify strategic alternatives and make rational strategic decisions for a health care organization.
• Develop a comprehensive strategy for a health care organization.
• Create effective value-adding service delivery and support strategies.
• Translate service delivery and support plans into specific action plans.

The health care industry’s revolutionary change remains ongoing and organizational success depends on leadership. Strategic management has become the single clearest manifestation of effective leadership of health care organizations and the strategic management framework’s strengths are needed now more than ever. The Strategic Management of Health Care Organizations provides comprehensive guidance and up-to-date practices to help leaders keep their organizations on track.

"A comprehensive guide to effective strategic management of health care organizations. Strategic Management of Health Care Organizations provides essential guidance for leading health care organizations through strategic management. This structured approach to strategic management examines the processes of strategic thinking, consensus building and documentation of that thinking into a strategic plan, and creating and maintaining strategic momentum all essential for coping with the rapidly evolving health care industry. Strategic Management of Health Care Organizations fully explains how strategic managers must become strategic thinkers with the ability to evaluate a changing industry, analyze data, question assumptions, and develop new ideas. The book guides readers through the strategic planning process demonstrating how to incorporate strategic thinking and create and document a clear and coherent plan of action. In addition, the all-important processes of creating and maintaining the strategic momentum of the organization are fully described. Finally, the text demonstrates how strategic managers in carrying out the strategic plan, must evaluate its success, learn more about what works, and incorporate new strategic thinking into operations and subsequent planning. This strategic management approach has become the de facto standard for health care management as leadership and strategic management are more critical than ever in coping with an industry in flux. This book provides heath care management students as well as health care administrators with foundational guidance on strategic management concepts and practices, tailored to the unique needs of the health care industry. Included are a clear discussion of health services external analysis, organizational internal analysis, the development of directional strategies, strategy alternative identification and evaluation, and the development and management of implementation strategies providing an informative and insightful resource for anyone in the field. This new eighth edition has been fully updated to reflect new insights into strategic thinking, new methods to conceptualize and document critical environmental issues, practical steps for carrying out each of the strategic management processes, industry and management essentials for strategic thinkers, and new case studies for applying the strategic management processes. More specifically, readers of this edition will be able to: Create a process for developing a strategic plan for a health care organization. Map and analyze external issues, trends, and events in the general environment, the health care system, and the service area. Conduct a comprehensive service area competitor analysis. Perform an internal analysis and determine the competitive advantages and competitive disadvantages. Develop directional strategies. Identify strategic alternatives and make rational strategic decisions for a health care organization. Develop a comprehensive strategy for a health care organization. Create effective value-adding service delivery and support strategies. Translate service delivery and support plans into specific action plans. The health care industrys revolutionary change remains ongoing and organizational success depends on leadership. Strategic management has become the single clearest manifestation of effective leadership of health care organizations and the strategic management framework strengths are needed now more than ever. The Strategic Management of Health Care Organizations provides comprehensive guidance and up-to-date practices to help leaders keep their organizations on track"-- Provided by publisher The 6th edition of this established text is streamlined to a more manageable format, with the Appendices moved to the web-site and a significant shortening of the main text. There is a greater focus on the global analysis of industry and competition; and analysis of the internal environment. In consultation with feedback from their adopters, the authors have concentrated on the fundamentals of strategy analysis and the underlying sources of profit. This reflects waning interest among senior executives in the pursuit of short-term shareholder value. As ever students are provided with the guidance they need to strategic planning, analysis of the health services environment (internal and external) and lessons on implementation; with additional discussionssion of organizational capability, deeper treatment of sustainability and corporate social responsibility and more coverageof the sources of organizational inertia and competency traps. This edition is rich in new examples from real-world health care organizations. Chapters are brought to life by the 'Introductory Incidents', 'Learning Objectives', 'Perspectives', 'Strategy Capsules', useful chapter summaries; and questions for class discussion. All cases and examples have been updated or replaced. In this edition the teaching materials and web supplements have been greatly enhanced, with power-point slides, to give lecturers a unique resource. Table of Contents: The nature of strategic management Understanding and analyzing the general environment of the health care environment Service area competitor analysis Internal environmental analysis and competitive advantage Directional strategies Developing strategic alternatives Evaluation of alternatives and strategic choice Value adding service delivery strategies - Value adding support strategies Communicating the strategy and developing action plans. Appendices: Analyzing strategic health care cases Financial analysis for health care organizations. Cases in the Health Care Sector: The pharmaceutical industry: an industry note Salix Pharmaceuticals, Inc.: Succeeding on the road less traveled Community Blood Center of the Carolinas: Donations, donations, donations OR Solutions reaches a crossroad Can this relationship be saved? The Midwestern Medical Group's integration journey Ellen Zane: Leading change at Tufts-NEMC Indian Health Service: Creating a climate for change Dr. Louis Mickael: the physician as strategic manager Governance challenges at Good Hand Healthcare (A) The Rosemont Behavioral Health Center Riverview Regional Medical Center: an HMA facility AIDSCAP Nepal Emanuel Medical Center: Crisis in the health care industry Cooper Green Hospital and the Community Care Plan So, Doctor, Can you fix this? A case involving a medical spa C. W. Williams Health Center: A community asset Pacific Cataract and Laser Institute: competing in the LASIK eye surgery market The Premier Health Care Alliance emerges The case for open heart surgery at Cabarrus Memorial Hospital Emergency Care Group