The business model canvas is a strategic management tool that assists in developing new businesses and the refinement of existing ones. It is a visual representation of a company’s business model, outlining the key areas of its operations. Stanford Hospital, located in California, adopts the use of a business model canvas to assist the management in thinking through their operations and how they can improve the hospital’s services. The business model canvas is a tool that was developed by Alexander Osterwalder, Yves Pigneur, and Alan Smith in their book Business Model Generation (Osterwalder et al., 2020). To provide efficient and quality care to patients, the health center must have a well-thought-out business model. This paper will first provide an overview of the Stanford Hospital healthcare system, followed by a description of each element of the canvas and how they can be improved. After that, conclusions will be drawn, and recommendations will be made.
Stanford Hospital Business Model Canvas
For the success of the healthcare business, an organizational model should be present for the proper functioning of the healthcare sector. A healthcare model comprises vital partners, activities, customer relationships, offers, segments, resources, channels, revenue streams, and cost structure (Sibalija et al., 2021). Stanford Hospital management must constantly work to maintain and improve the status of these sections for the continued delivery of quality care.
Key Partners
Healthcare providers are always looking for ways to improve the quality of care and increase their patient base. Recently, Stanford Hospital and other healthcare centers have been partnering with business organizations to help them achieve these goals. The key partners an organization chooses can make or break its ability to succeed. Some of the key partners in the hospital include pharmaceutical firms, health institutions, Tricare, TriWest Prime (HMO) Tricare, medical product manufacturers, and LabCorp.
Pharmaceutical Firms
In the United States, Pharmaceutical firms are coming under increasing pressure to provide their services to the healthcare sector. There are several reasons for this, but the most pressing one is the rising cost of healthcare. Pharmaceutical firms are uniquely positioned to help address this issue, taking steps to do so. The Affordable Care Act has done much to help, but there is still much work. Pharmaceutical firms are stepping up to the plate, using their expertise and resources to help improve healthcare. They are doing this by developing new drugs and therapies to treat diseases. They are also working on improving the delivery of care and developing new ways to provide more efficient and cost-effective care. Finally, they seek to improve public health, educating people about important health issues and helping to prevent disease. Pharmaceutical firms are a crucial part of the healthcare system and are doing their part to enhance it.
Pharmaceutical firms have a variety of roles in improving healthcare; having them as critical partners means that they will be able to build and bring them to market. The firms often engage in a lengthy and expensive process that can take many years to approve a new drug. Once a drug is approved, pharmaceutical firms must then work to get the drug to as many people as possible. This includes marketing the drug to physicians and patients, negotiating prices with insurance companies and other payers, and ensuring that the drug is available in pharmacies. Pharmaceutical firms also have a role in developing new treatments and technologies. They often fund research in universities and hospitals, and they work with doctors and patients to test new therapies and technologies.
Health Institutions
Health institutions play a critical role in the overall functioning of the healthcare system. They are responsible for developing and implementing health policies and programs and providing essential services to the community. In addition, health institutions also serve as training grounds for future healthcare professionals. By collaborating with health institutions, the healthcare system can ensure that patients receive excellent care and that the system is constantly evolving to meet the community’s needs. Therefore, with the presence of this sector, a healthcare institution can perform its operation successfully and deliver quality healthcare services to patients.
Tricare
Tricare is a health insurance program for members of the military, retired military members, and their dependents. It is administered by the Department of Defense (DOD) and provides benefits for hospitalization, outpatient care, mental health services, and more (Lazarus, 2020). Because the DOD issues Tricare, hospitals that accept Tricare patients must follow specific guidelines and meet specific standards. This helps ensure that military members and their families receive high-quality, affordable medical care. As a healthcare administrator, it is essential to understand Tricare’s role in hospitals.
Tricare is important for Stanford Hospital because it offers a reliable and steady income stream. In addition, it helps maintain a high level of patient care for those in the DOD within California. Tricare patients often require fewer tests and procedures so that the hospital can save money on supplies and equipment. Plus, Tricare covers a wide range of services so that various healthcare options can be offered to patients. Finally, Tricare helps the hospital by providing financial stability during times of crisis.
One of the essential benefits of Tricare is that it allows the provision of high-quality care to patients without worrying about the cost. Tricare helps in covering the often-high costs of medical procedures and treatments, which will enable them to focus on providing the best possible care to their patients. Additionally, Tricare helps patients who visit the hospital by providing affordable health insurance covering many medical services. This can be extremely helpful for patients who are not covered by other health insurance plans or need additional coverage. Tricare is an essential part of the healthcare system in the United States, and it plays a vital role in ensuring that hospitals can provide the best possible care to their patients.
Medical Product Manufacturers
Stanford Hospital has partnered with various medical product manufacturers that are responsible for designing, developing, testing, and manufacturing medical devices, pharmaceuticals, and biologics. Some of the medical manufacturers that Stanford Hospital partners with are Johnson & Johnson, Abbott, and Medtronic. In the United States, medical product manufacturers must adhere to the regulations of the Food and Drug Administration (FDA). The FDA ensures that medical products are safe and effective for humans. This is a critical responsibility, as hospitals rely on medical products to save lives. Medical product manufacturers are essential to the safety and efficacy of hospital care.
Medical product manufacturers are essential partners for hospitals, and they place critical roles that are vital for the successful delivery of quality healthcare services. The manufacturers help hospitals by providing products that improve patient care and safety. They also assist hospitals in saving money by offering products at a discount. Additionally, the manufacturers help hospitals meet government regulations by providing products that comply with the rules. Finally, the manufacturers help hospitals keep up with technology by developing new products.
LabCorp
LabCorp is a large healthcare corporation that provides clinical laboratory tests for hospitals, physicians, and other healthcare providers across the United States. LabCorp operates over 2,000 patient service centers in the United States and processes more than 1.5 billion tests each year (Ferrè, Titan & Inker, 2022). The company has been around since the late 1970s and is headquartered in Burlington, North Carolina. LabCorp has been a clinical laboratory providing comprehensive medical testing services to hospitals and other healthcare providers across the United States for over 50 years. LabCorp is unique because it offers various services, ranging from routine blood work to complex genetic testing. This allows hospitals to outsource various diagnostic services to LabCorp, which helps streamline hospital operations. Additionally, LabCorp provides high-quality diagnostic testing at an affordable price, which has made it a popular choice for hospitals throughout the United States.
LabCorp plans to further integrate its technology into hospital systems across the United States. It also plans to expand its services to include genetic sequencing and precision medicine. This will help LabCorp become a one-stop shop for all types of health information, making it an even more valuable resource for hospitals and their patients. There is a promised and reliable delivery of advanced care for various patients with different conditions in the hospital.
Key Activities
The hospital setting can be chaotic and dangerous, so it is essential for staff to be well-organized and focused on critical activities. To minimize the risk of infection, medication error, and other safety concerns, nurses must adhere to a strict schedule of tasks. Hospitals can ensure that patients receive the best possible care by prioritizing key activities. With the current prevailing situation of COVID-19, healthcare practitioners work tirelessly to provide a significant number of vaccinated patients.
Individuals who work in the hospital setting have demanding jobs that require them to be alert and responsive to the needs of their patients. Healthcare workers need to focus on critical activities to facilitate an efficient and productive work environment to meet these needs. By performing these vital activities, workers can minimize distractions and optimize their time at work. This will ultimately lead to a better patient experience and improved outcomes.
Stanford Hospital Offers
Virtual Healthcare
Virtual health services have increased, and hospitals are jumping on board. Virtual health is an alternative way to get medical care when one cannot see a doctor in person. It can be a good option for people who live too far from the closest healthcare facility or with access-related issues such as transportation. Currently, within the United States, patients are being admitted to “telemedicine” rooms, where they spend most of their time engaging in video chats with specialists stationed across town. Virtual healthcare when adopted will lead to an erosion of some fairly hard-earned doctor-patient relationships. Virtual healthcare has proved helpful during the COVID-19 error by reducing congestion in hospitals to contain the spread of the disease.
Mental Health Services
There have been several cases of mental health problems; the situation has worsened due to the fear and worry caused by the pandemic. One in three people has mental illness each year, yet not enough attention is being given to this issue in today’s world. The problem of mental illness is a serious condition, but the solutions are not always clear. Hospitals are often an integral cog of the mental health care system, an appropriate function that Stanford Hospital does. They provide short-term stabilization and long-term treatment for individuals who cannot be discharged to their community due to their psychiatric symptoms or threats of self-destructive behavior, such as suicidal thoughts or homicidal ideation.
Customer Relationships
An organization’s effectiveness and productivity primarily depend upon the strength of customer relationships. Hospitals can help in customer relationships in several ways, including enhanced patient experience, improved operational efficiency, promotion of medical education, and alignment with public policy initiatives. For instance, in improving the patient experience: Stanford Hospital has a reputation for excellence in health care. They offer a consistently high level of quality care to patients, which leads to improved patient satisfaction.
Key Resources
Some of the resources that are required within the hospital include civilian staff health agency funding and government building and equipment. At least in developed countries, most hospitals have several critical resources that allow them to function. These range from surgical instruments to robust software programs for imaging. Hospitals can also provide some patients with equipment and healthcare professionals if they cannot afford it. Just as importantly, many hospitals maintain donors’ databases for organ transplants or bone marrow matches. Offering a variety of resources for both staff and patients, including various art collections and a health education library, Stanford Hospital today should provide an environment that is comfortable, convenient, and culturally diverse. And while advances in technology have changed the way we work in many industries, they can be especially beneficial to Stanford Hospital as they help provide even better care.
Channels
Channels are crucial to hospitals and healthcare facilities for several reasons. Hospitals are often used as a center for education, helping patients learn about their diseases and recovery; channels help disseminate this information on-site. Channels provide healthcare facilities with an inexhaustible supply of fresh air, which can be helpful in areas where there is particle pollution in the air, and it’s too difficult for people to stay healthy without cleaner air.
Cost Structure
Hospitals are constantly faced with the problem of maintaining a healthy balance between revenue and expenditure. The income is mainly generated from patient billing, which in turn is dependent on the cost structure that is levied on patients. Therefore, different components of cost structures and their effect on hospital performance should be known. Therefore, Stanford Hospital management should always consider cost structures to manage them properly while minimizing misuse.
Revenue Streams
With the revenue streams from insurance company reimbursements, private payments, and Medicare, the hospital can maintain a proper flow of money utilized to advance and pay off its staff. With the presence of Medicare, there is a provision of inclusive healthcare services to various classes of people, such as individuals from the department of defense. Therefore, Stanford Hospital should always adopt and maintain multiple revenue streams to ensure a flow of revenue to improve and deliver good healthcare services.
Behavioral Trends in Stanford Hospital
Some of the behavioral trends that the hospital should adopt are the integrator, business strategies, and business model design. Through the integrator, the hospital should adopt services that include conventions of various roles and systematically work across different hospital sectors to improve healthcare services that lead to the well-being of multiple patients. Integration in various clinics and healthcare includes proactive care plans that are well developed, proactive care, availability of transitions in healthcare, patient empowerment, and responding to the needs of the patients. When the hospital begins to integrate various services, it promotes an influx of clients from different parts of the world because of the quality services and affordable prices. Utilization of various model designs such as “Duster” plays a significant role in ensuring a proper flow of information concerning the patient to multiple sectors within a hospital setting. This ensures that service delivery is quick and there is no delay in administering to the patients. This service has helped reduce errors in various other hospitals, such as Rotterdam Eye Hospital.
For proper functioning, Stanford Hospital must adopt a good strategic plan that is implemented, evaluated, and formatted effectively. To ensure that a strategic business model is established, the hospital must consider adopting frequent inspections through a joint commission to monitor all functions within a clinical setting. After periodic inspections, the attainment of a better score is an indication that the hospital can deliver quality services, and if not, the facility should improve its service delivery.
Appropriate Theory
Several theories play significant roles in healthcare; one of the most critical theories is the health belief theory. With the utilization of this theory, Stanford Hospital can try and make predictions on health behaviors. The hospital applies the integrator model and incorporates the idea to influence and enlighten the patients regarding the picture. Healthcare personnel always rely on this theory to explain the concept of perceived susceptibility, perceived severity, and perceived benefits (Sheppard & Thomas, 2021). Therefore, by understanding health behaviors, medical practitioners can guide the promotion of healthcare and disease prevention programs.
Additionally, another significant theory that is quality-oriented and goal-directedness is the systems theory. The theory is a transdisciplinary and management methodology that is based on an organization abstract by considering the temporal scale of existence. The theory can be used to evaluate the business model of Stanford Hospital, and it considers all the nine key sectors of the business canvas model. The theory focuses on improving systems such as communication to achieve the organization’s goal. There must be quality communication.
Metaphors
Metaphors play significant roles in the hospital setting as they are applicable in some situations to describe terminal conditions to patients; this offers relief from terminology. Metaphor is therefore applied in classifying a given disease that resists classification (Bradley, 2018). Some of the most common analogies always in use are war, machine, and machine metaphors. The usage of metaphors in the hospital has helped in clear communication and economical and effective transfer of meaning.
Frames
Medical framing is the process of using pictures and words to communicate important medical information to patients. It is a way to “frame” the information to make it easy for patients to understand (Negrini et al., 2020). Medical framing is always used in various Stanford Hospital settings, such as ER, patient charts, and waiting areas. It is a valuable tool for healthcare professionals because it helps them communicate with patients effectively and efficiently.
There are various ways medical framing is applied in different hospital settings to improve patient care. For example, in the Intensive Care Unit, the medical frame enhances communication between patients and doctors. The medical structure is used in hospitals to educate patients about their health conditions and treatment. In addition, the method is used to create a positive environment for patients and improve their overall hospital experience.
Application of Osterwalder/Pigneur Text in Stanford Hospital
The Osterwalder and Pigneur text has become a popular tool for assessing and diagnosing an organization’s business model. Considering that Osterwalder and Pigneur’s text is a framework for understanding, designing, and improving your organization’s business model, it is necessary to consider the recommendations of the text (Vovk & Kister, 2021). Firstly, the text highly recommends an organization cover the nine elements in its business model, which is present in my organization’s business model. Through the texts, the key components present in the business can be integrated appropriately, designed, and improved accordingly per the hospital’s needs and advancement. Additionally, one can track the hospital’s business progress as per the nine critical components through the texts.
Recommendations for Improvement at Stanford Hospital
However, the theory and other assessment tools, such as the metaphor and frames, play a significant role in hospital settings; there are some improvements that I recommend. Firstly, the hospital should incorporate modern technologies across all its nine segments; this will speed up the work in each piece. Incorporating advanced technologies such as barcoding helps limit errors and streamline the patients’ admittance process (Hutton, Ding & Wellman, 2021). For hospital survival, there must be possible value-based care attained through the promotion of diagnosis that is more well-informed, and those diagnostic exams are modernized.
Additionally, there should be transparency among the personnel within the hospital setting. This will lead to reliable services that lead to quality services for the patients. The hospital should also incorporate connected care, such as mobile devices to monitor patients remotely, leading to better patient outcomes. To maintain customer relations, the hospital should rely on an online portal for easy follow-up of patients who have been discharged; this will lead to more positive outcomes among patients. Additionally, Stanford Hospital management should ensure that the medical personnel is happy with the provided workplace environment, leading to more positive and quality outcomes among patients.
References
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