Webster Health System is a hospital and for-profit organization that is accredited by the American Osteopathic Association and is an affiliate of the OHA (Osteopathic Hospitals of America, Inc.) (Seidel & Lewis, 2014). Its main competitor in the market is the Middleboro Community Hospital, currently named MIDCARE. Being an affiliate member of OHA presents both opportunities to the hospital but also results in some weaknesses that affect its efficiency. The paper aims to show the company’s strengths (or business advantages), weaknesses (areas where improvement is needed), opportunities (potential beneficial areas that the company can use), and threats (external factors that can negatively affect the company).
SWOT Analysis
Figure 1. SWOT analysis of WHS.
WHS has undergone a modernization, which resulted in the creation of a modern unit where more technologically advanced tools are used; a new maternity unit was also established. Affiliate membership of OHA also provides the following advantages: board education, the development of a strategic plan and quality assurance system, and continuing medical education. Technological advances include the use of electronic health records and tele-med services. Economic strengths include the OMC program, access to capital at the prime rate +0.2%, and consulting services in financial management (Seidel & Lewis, 2014). Low turnover of nurses also reduces the costs of hiring new employees. Competition is achieved through regional and community advertisements provided by OHA.
Terminated education agreement with MIDCARE is a sign of a change in competitiveness that will grow considerably in the future, which, together with other weaknesses, can negatively affect WHS. Affiliate membership of OHA has downsides: regulatory specifics of the contract stress that WHS has to provide patient information to OHA, as well as the draft of its revenue/expense budget, and provide a fee ($1 million or 0.5 of hospital’s charges). However, the hospital faces uncertain future despite being an affiliate with OHA, as the competitive power of MIDCARE grows as well (Seidel & Lewis, 2014). As medical staff at WHS provides primary care mostly, and patients can be referred to OHA, its competitiveness is lower than that of MIDCARE.
Multiple trends can be seen as opportunities and can have a positive impact on the hospital. First, the change in the governing board would be effective: instead of replacing it every two years the hospital would profit from a multiple-year governing of the same board executives. Changes in competitive strategy could attract patients of MIDCARE, decreasing its competitiveness, and assisting the hospital in capturing the ambulatory/inpatient market (Seidel & Lewis, 2014). Presence outside of Middleboro and expansion of outpatient services would be backed up by the qualified and loyal staff of the hospital, increasing the satisfaction of clients and WHS’ effectiveness. Economic benefits could be caused by the transformation of semiprivate rooms to private rooms, as they can bring serious benefits and address OHA-affiliated hospitals’ needs for patient beds (Whittaker & Chee, 2015). Drug and alcohol addiction treatment units are currently not present but can be added to the expansion plans to increase WHS’ competitiveness.
Changes in the market and marketing dynamics can negatively affect the hospital, which can result in financial losses and decreased inefficiency (doubled my staff’s negative perception of OMC’s obligatory preference of physicians and the lack of experienced governing board). Lack of qualified professionals can also undermine the hospital’s ability to provide quality care (Al-Sawai, 2013). With the shortage of qualified staff, the hospital will not be able to compete with a regional accountable care organization successfully, and this issue, coupled with financial changes in the system (mostly negative ones), casts a dark shadow on the hospital’s future.
Vulnerability, Constraint, Leverage, Problem
The identified vulnerability: due to the lack of qualified staff in the market (threat), it will be difficult to maintain the qualification of the hospital’s staff (strength). The identified constraint: since medical staff at WHS provides mostly primary care and no cancer treatment to patients is available (weakness), it will be challenging to capture the ambulatory patient market that uses services of MIDCARE. The identified leverage: skilled and dedicated staff (strength) can be used to ensure quality improvement at WHS (opportunity). The identified problem: no cancer treatment at the hospital (weakness) is aggravated by the lack of qualified professionals in the market (threat), which severely undermines the hospital’s ability to compete with other local and state healthcare facilities, especially MIDCARE. Thus, WHS needs to determine how qualified hospital staff can be recruited, and after that plan expansion and outpatient services.
References
Al-Sawai, A. (2013). Leadership of healthcare professionals: Where do we stand? Oman Medical Journal, 28(4), 285-287.
Seidel, L.F., & Lewis, J. (2014). The Middleboro casebook: Healthcare strategy and operations. Chicago, IL: Health Administration Press.
Whittaker, A., & Chee, H. L. (2015). Perceptions of an ‘international hospital’ in Thailand by medical travel patients: Cross-cultural tensions in a transnational space. Social Science & Medicine, 124, 290-297.