Barbara was recently hired as a regional manager for the Urgent Care Clinic Organization (UCCO). One of her first tasks is to compile a strategic plan for the executive committee to review. The overall goal of the strategic plan is to identify specific actionable items that can better position the clinic organization.
For this assignment on UCCO, complete a minimum 2-page summary to explain why the organization should devote time to planning and why a strategic plan is needed.
Visit the Rasmussen online Library and search for a minimum of 2 articles (attached)covering the topics What can a healthcare organization accomplish with the strategic planning process?
· What would you recommend as areas of focus for Barbara’s strategic plan?
· Discuss how Barbara can achieve a balance between historical and current topics in healthcare?
o How should she apply them for her strategic plan?
· What type(s) of primary and secondary research would you recommend Barbara conduct? What are the benefits? Explain.
· APA formatted reference page and in-text citations.
Essentials of strategic Planning in Healthcare Introduction Healthcare spending in the United States in 2006 rose 6.7 percent from the previous year, to $2.1 trillion. This figure equates to an expenditure of $7,026 per person and 16 percent of the gross domestic product. During this same period, prescription drug spending increased 8.5 percent (Catlin et al. 2008). Healthcare costs are increasing at a significant rate, and the industry needs leaders who can allocate resources more ef-ficiently. Research shows that hospitals are one of the largest employers in the country and are critical to attracting new business to a geographic area. The healthcare industry also contributes to the United States’ economic and social well-being; the Bureau of Labor Statistics (2007) reported 13.6 million Americans were employed in the health-care industry in 2006. As noted in Exhibit 1.1, the U.S. hospital industry comprises a wide range of hospitals of varying size. Growth is important to an organization’s future success. It helps the organization recruit physicians and provides for greater economies of scale(see Highlight 1.1), which can result in increased profitability. To grow, organizations need effective infrastructures, high-performance work processes, and skilled personnel, and they must provide their employees with appropriate incentives. Most important to growth is good strategy development, which is a product of excellent leadership and diversity of individuals and expertise (Goldman and Dubow 2007). Strategic planning is an effective way for organizations to improve their allocation of resources(see Highlight 1.2). Resources need to be allocated in a way that allows organizations to provide healthcare services as efficiently as possible. Research has shown that the efficient allocation of healthcare resources in the production process is linked to improved quality (Harrison and Cop-pola 2007). The following section discusses the role of hospital leaders, particularly their function in strategic planning. Defintion of leadership
The most basic level, leadership is the ability to guide, influence, and inspire individuals to meet goals (for purposes of this book, organizational goals). Competency models that focus on leadership in the healthcare industry have been developed by many organiza-tions, including the Healthcare Leadership Alliance and the National Center for Healthcare Leadership (see Highlight 1.3). Based on the most current research, these models identify behaviors and technical skills (competencies) that characterize outstanding leadership performance. In this rapidly changing healthcare industry, strategic planning is becoming in-creasingly important to overall organizational success. Strategic planning involves the de-velopment of organizational objectives (i.e., what the organization wants to accomplish), the management of action plans, and the measurement of ongoing performance. Key to strategic planning is the development of relationships with key stakeholders, such as patients, physicians, employers, insurers, community groups, and government agencies (Griffith and White 2005).In healthcare organizations, the board of directors and the chief executive officer (CEO) are at the top of the leadership structure. The board of directors is the governing body appointed to hold fiduciary responsibility for the organization. (An example of Pied-mont Healthcare’s (Atlanta, Georgia) board of directors is illustrated in Exhibit 1.2.) As part of this responsibility, the board makes policy decisions, which guide the future of the organization. An essential area of the board of directors’ responsibility is the development of a strategic plan consistent with the organization’s mission and vision.Many believe that an organizational culture that embraces continuous quality im-provement is necessary for long-term success and that the board of di-rectors should focus on measuring performance to ensure healthcare quality. The Institute of Medicine (IOM) (see Highlight 1.5) believes that improving the healthcare industry will require changes to the structure and processes of the delivery system, as well as a focus on coordination of care across all services (IOM 2001). In addition, successful delivery of healthcare in the future will depend on the use of health information technology, such as electronic medical records.The CEO is the highest ranking executive in an organization and is responsible for strategic planning, hiring senior leadership, and managing operations. The CEO is often a member of the board of directors and is a key interface between the board and opera-tions. The CEO also represents the organization to key stakeholders, including regulatory authorities and community groups. A competent CEO emphasizes organizational transformation by envisioning, energizing, and fostering change. Analytical thinking, a community orientation, innovative thinking, and strategic planning are essential to this focus. At the execution level, CEOs must demonstrate an ability to manage change, communicate, influence staff, and measure performance. They also need to dem-onstrate excellent people skills; they must build relationships, uphold professional ethics, develop talent, and lead teams (Calhoun et al. 2008). Most important, CEOs should focus on organizational values, direction, and performance expectations. MLA (Modern Language Assoc.) Harrison, Jeffrey, and Association of University Programs in Health Administration. Essentials of Strategic Planning in Healthcare. Health Administration Press, 2010. APA (American Psychological Assoc.) Harrison, J., & Association of University Programs in Health Administration. (2010). Essentials of Strategic Planning in Healthcare. Chicago, Ill: Health Administration Press.