BHA FPX 4104 assessment 2 Strategic Analysis and Operational Considerations BHA-FPX4104 Strategic Leadership and Workforce Planning in Health Care

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Strategic Analysis and Operational Considerations

This paper explores the dynamics of competition within the healthcare industry and its implications for strategic planning. It evaluates the frameworks associated with healthcare organizations and their operational impacts. Through a comprehensive examination of internal, external, and general environments, the paper underscores the necessity of strategic planning in navigating the challenges posed by competition and ensuring organizational success.

Competition Within the Healthcare Industry

Competition in the healthcare sector is a contentious issue, with varying perspectives on its effects. Some argue that competition undermines the altruistic goals of healthcare by prioritizing cost reduction, while others advocate for its role in driving efficiency and innovation (Goddard, 2015). In strategic planning, it is essential to recognize and mitigate the external pressures stemming from competition to protect the organization’s mission and vision (Haas, Jellinek, & Kaplan, 2018). St. Anthony Medical Center, like many healthcare providers, must adapt to evolving patient needs and market dynamics to remain viable amidst increasing competition from outpatient facilities and private clinics (Dafny & Lee, 2016).

Strategic Frameworks of Healthcare Organizations

Strategic frameworks are fundamental to organizational planning, providing structured approaches to goal attainment and performance monitoring (Wright, 2018). Two prominent frameworks, the Balanced Scorecard and Porter’s Five Forces, offer valuable insights into organizational strategy. The Balanced Scorecard allows organizations to assess their performance across various dimensions, facilitating informed decision-making (Wright, 2018). Conversely, Porter’s Five Forces framework aids in analyzing the competitive landscape and identifying strategic opportunities and threats (Martin, 2018).

Internal, General, and External Environment

The operational landscape of healthcare organizations is influenced by internal, external, and general environments (Quain, 2018). Internal factors, such as organizational culture and stakeholder dynamics, shape decision-making and behavior within the organization (Quain, 2018). External factors, including market competition and regulatory changes, exert pressure on the organization’s strategic direction (Quain, 2018). General environmental factors, such as economic trends and technological advancements, further complicate the healthcare landscape (Quain, 2018).

Consequences of Not Utilizing Strategic Frameworks

Neglecting to adopt strategic frameworks can have significant repercussions for healthcare organizations, jeopardizing their competitive position and long-term viability. St. Anthony Medical Center’s reluctance to implement strategic initiatives may lead to decreased patient volume and revenue loss, ultimately compromising its ability to serve the community effectively (Glied & Altman, 2017). Strategic interventions, such as enhancing service offerings and improving operational efficiency, are crucial for maintaining the organization’s relevance in a competitive healthcare market (Roy, 2020).

References

Chalkidou, K. (2017). Is Competition Bad for Our Healthcare System? We Simply Do Not Know. The Lancet Oncology, 18(11), 1424–1425.

Dafny, L., & Lee, T. (2016). How to Bring Real Competition to the Health Care Industry. Harvard Business Review.

Delegram, T., & Kloc, C. (2016). The Changing Health Care Landscape. Deloitte.

Glied, S. A., & Altman, S. H. (2017). Boosting Competition Among Hospitals, Health Systems Will Improve Healthcare. STAT.

Goddard, M. (2015). Competition in Healthcare: Good, Bad or Ugly? International Journal of Health Policy and Management, 4(9), 567–569.

Haas, D., Jellinek, M., & Kaplan, R. (2018). Hospital Budget Systems Are Holding Back Innovation. Harvard Business Review.