Strategy Development
Strategy Formulation Strategies
Strategy Development (SD) is a powerful concept that can make many healthcare organizations successful. Healthcare providers can use various strategies in order to implement their SDs.
- Directional Strategy: This concept refers to “the missions, goals, objectives, visions, and values targeted by a specific organization” (Moseley, 2012, p. 16). According to Ginter, Duncan, and Swayne (2013, p. 28), “such directional strategies are also called the ends”. A good example is when a healthcare institution identifies its mission or vision.
- Adaptive Strategies: These are powerful concepts that make it easier for health organizations to achieve their directional goals. These adaptive concepts “are concerned with the scopes that define the operations of an organization” (Ginter et al., 2013, p. 64). For example, a healthcare facility might decide to maintain, reduce, improve, or expand its operations.
- Market-entry Strategies: It is appropriate for a facility to achieve its adaptive strategies. This objective results in market-entry strategies. These strategies highlight the best ideas that can support the above adaptive goals (Hagen, 2013). For example, a healthcare institution might decide to purchase new resources or change its internal structure.
- Competitive Strategies: These strategies ensure an organization competes effectively by providing quality services. For example, a healthcare facility might use different programs in order to improve its services.
A Specific Value-Added Service
A healthcare institution can support its competitive strategy using different value-added services. A good example of a specific value-added service is a “Corporate Wellness Program”. This program can ensure every institution empowers its caregivers. The practice will encourage every employee to offer the best services. The “program will empower more nurses to support the targeted goals” (Hagen, 2013, p. 39). The approach will reduce most of medical costs incurred by the facility. This value-added service will support the institution’s competitive strategy.
Strategic Alternatives
Cost Leadership Strategy
According to Cuellar and Gertler (2002, p. 5), “cost leadership strategies encourages healthcare organizations to offer low cost services without incurring numerous expenses”. This goal “is achieved by reducing an institution’s operational costs compared to those of its competitors” (Moseley, 2012, p. 108).
Cost leadership can produce various challenges in different healthcare institutions. The first challenge is the loss of experienced nurses and caregivers. The above strategy minimizes an institution’s operational costs. The practice might affect the morale of different workers. The second challenge is the inability to offer quality services to different patients.
Healthcare institutions should find the best solutions to the above challenges. The targeted institution can embrace new programs in order to support the changing demands of its workers. The facility should also offer good salaries. New sources of motivation will make the healthcare facility successful. The institution can address the second challenge by improving the quality of its healthcare services (Cuellar & Gertler, 2002). The institution should ensure its caregivers use evidence-based concepts in order to offer the best services.
Vertical and Horizontal Integration
According to Moseley (2012, p. 95), “horizontal integration takes place when two or more institutions merge”. Most of these institutions are usually at the same level of healthcare delivery. A good example is when two hospitals merge in order to offer better health services. A hospital providing cancer care can merge with another one providing quality care for different cancer types.
On the other hand, “vertical integration will occur when two or more health institutions offering medical care at different levels merge” (Hagen, 2013, p. 47). For example, a Community Health Institution (CHI) might merge with a Tertiary Healthcare Facility (THF).
Reference List
Cuellar, A., & Gertler, P. (2002). Strategic Integration of Hospitals and Physicians. Web.
Ginter, P., Duncan, W., & Swayne, L. (2013). Strategic Management of Health Care Organizations. Francisco, CA: Jossey-Bass.
Hagen, J. (2013). Concepts in Health Care Entrepreneurship. New York, NY: Remedy Books.
Moseley, G. (2012). Managing Health Care Business Strategy. New York, NY: Jones and Bartlett Learning.