Strategic Management, Mission And Vision Statements In The Health Care Industry

Senior management of a Healthcare Organization (HCO) has the enormously important task of constructing an operational strategy for the HCO. The goal of the strategy is for all employees to provide quality performance. The Institute of Medicine has created the most widely accepted definition of quality in the health care setting. They define quality as providing services that are current with the most recent scientific knowledge, that produce desired patient and community health outcomes. This definition targets the relationship between the service provider and the patient or population, which also includes the activities and structures needed for the delivery of care (Niles, 2013).

The plan needs to be constant with the HCO’s mission, demonstrating a competitive advantage while accentuating the strengths of the HCO.

For senior management it is integral that their tactical planning for setting long-term objectives involves a macroenvironmental analysis. This examination requires critical thinking of how economic, technologic, sociocultural, demographic, governmental and legal influences will affect the value of their short-term and long-term performance plan goal.

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Two recent changes in the external macroenvironmental atmosphere having influence on senior managers to consider changing their approaches, are the pressures for price transparency and the tax incentives of qualified opportunity zones. The act of price transparency presents a new and essential challenge for healthcare organizations. Traditional access strategies that focus on network design, physician referrals, appointment wait times, and the like will fall short if they don’t include price transparency services (Malenka, 2018). In 2018 Malenka said, “Acknowledging and embracing this imperative is the only way healthcare organizations can effectively meet the demands of a growing market of cost-seeking consumers” (pp.

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4).

Additionally, Quality Opportunity Zones (QOZ) came into existence on December 22, 2017 with the passage of the Tax Cuts and Jobs Act. The QOZ addition to the law, gives incentives for investing in designated poverty rated zones by providing favorable capital gains tax deferment and exclusions. According to Hirsch, Zhao, Bilal, Neckerman & Michael (2020), these zones could spur extraordinary neighborhood change with considerable influence on health resources and outcomes. “Public health collaboration and strategic local governance of QOZ will be crucial for yielding health benefits for existing residents” (Hirsch et al., 2020, pp. 412). It is believed that QOZs might improve health and reduce inequity by creating jobs, raising incomes, and raising the number of health-relevant business in these disadvantaged areas (Hirsch et. al. 2020).

The strategy development we just discussed is one of three areas of strategic management. The other two parts consist of actions for implementation and Human Resource Management’s (HRM) assessment of employee performance. These three areas incorporate five strategic concepts: Mission and Vision Statements, Performance Objectives, Achievement Strategy, Execution and Evaluations plus Corrective Actions. The mission statement is the basis for realistic and maintainable goals for current operations, with the vision being an inspiration for futuristic objectives. Performance drivers are both financial and strategic. Financials are lagging indicators of achievement that are quantifiable with deadlines. Things like annual revenue increases and profit margins fall within this purpose. Strategic aims are more leading indicators of what the organization would like to attain, which include increasing market presence or even acquisitions.

The achievement concept relies on a thorough analysis of strengths, weaknesses, opportunities and threats (SWOT), along with the analysis of business opportunity appeal by utilizing Porter’s Five Forces model. HRM is very involved with the SWOT analysis by providing insight on turning weaknesses into strengths and threats into opportunities. Porter’s model takes into consideration the competition, suppliers, consumer alternatives, barriers for competing and consumer loyalties. The last two concepts of execution and evaluation are directly influenced by HRM. Within those organizations that engage in a high-performance work system of execution, HRM provides training for teamwork, teaches interviewing skills, implements a performance feedback system, coordinates training of technology, ethics and empowerment along with administering a rewards programs and when needed a job redesign initiative. The final concept of evaluation is an appraisal of quality execution by reviewing the financial and strategic results. If they are met, a monitoring of changes in the external opportunity and competition will continue. If they are not met, a review for how to change the strategy will fall back to the begging of the process with senior management.

The successful actions of all employees within the HCO determine the level of strategic management achieved.

References:

Hirsch, J. A.. J. ed., Zhao, Y., Bilal, U., Neckerman, K. M., & Michael, Y. L. (2020). Health and Health-Related Resources in Newly Designated Federally Qualified Opportunity Zones: United States, 2012–2016. American Journal of Public Health, 110(3), 407–415. https://doi-org.wwu.idm.oclc.org/10.2105/AJPH.2019.305489
Malenka, N. (2018). Why Your Access Strategy Demands Pricing Transparency. Hfm (Healthcare Financial Management), 1.
Niles, N. J. (2013). Basic concepts of health care human resource management. Burlington, MA: Jones & Bartlett Learning

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Strategic Management, Mission And Vision Statements In The Health Care Industry. (2022, Apr 30). Retrieved from https://studymoose.com/strategic-management-and-mission-and-vision-statements-in-the-health-care-industry-essay

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