Organizational Leaders Must Be Aware Of External Forces
Organizational Leaders Must Be Aware Of External Forces That May Impac
Organizational leaders must be aware of external forces that may impact their organization. Strategic controls and monitoring tools allow leaders to evaluate these forces and develop tactical objectives to limit negative consequences. For this Discussion, you explore how strategic controls, monitoring tools, and tactical objectives might be used to address issues impacting health care organizations. To prepare: In Week 1, the Instructor assigned to you a scenario that involves a health care organization with an issue requiring an evaluation of the organization’s strategic plan. Reflect on the issue and begin identifying and discussing evaluation or monitoring tools that would be useful to address this issue.
Be sure to consider the following: What strategic controls (e.g., promise control, implementation control, strategic surveillance, and special alert control) might you use and why? What monitoring tools (e.g., Gantt Chart, Balanced Scorecard, Dashboard, etc.) might you use and why? What are two tactical objectives that the organization might leverage to effectively address operations requirements and limit negative consequences? Reach a consensus of how the issue can be addressed using strategic controls, monitoring tools, and tactical objectives. Scenario: Lake County Medical Practice is a large physician practice in Tallahassee, Florida providing one-stop medical and ancillary services to their patients.
Of the approximately 80,000 patients Lake County serves annually, 38% are Medicare beneficiaries. Recently, the Centers for Medicare & Medicaid Services reduced reimbursement rates by approximately 11% for office visits, surgical procedures, and a range of diagnostic and therapeutic services. Based on a projection from the chief financial officer, the new reimbursement rates equate to a $5.8 million reduction in revenue for the medical practice. This comes at a time when Lake County Medical Practice has experienced an increase in new Medicare beneficiaries, as one of the area’s medical practices closed its door after the founder and chief executive officer retired four months ago. Other Medicare beneficiaries have been unsuccessful at finding new primary care physicians, as area physicians are not accepting new Medicare patients.
Therefore, Medicare beneficiaries are travelling at least 40 miles to the nearest provider to get medical service. Resources: Walston, S. L. (2014). Strategic healthcare management: Planning and execution . Chicago, IL: Health Administration Press.
Chapter 7, “The External Environment and Its Relationship to Strategy†(pp. 141–168) Chapter 8, “The Internal Environment and Strategy†(pp. 169–200) Chapter 15, “Implementing, Monitoring, and Evaluating Strategy†(pp. 326–334) Wayland, M. S., & McDonald, W. G. (2016). Strategic analysis for healthcare: Concepts and practical applications . Chicago, IL: Health Administration Press. Chapter 3, “Research and Competitive Analysis†(pp. 11–15) Chapter 5, “Strategic Industry Map†(pp. 29–30) Chapter 9, “SWOT: External Opportunities and Threats†(pp. 59–62) Chapter 10, “External Factor Evaluation†(pp. 65–68) Chapter 17, “SWOT: Internal Strengths and Weaknesses†(pp. 115–116) Chapter 18, “Internal Factor Evaluation†(pp. 119–121) Behrouzi, F., Shaharoun, A. M., & Ma’aram, A. (2014). Applications of the balanced scorecard for strategic management and performance measurement in the health sector. Australian Health Review, 38 (2), 208–217. Note: Retrieved from Walden Library databases. Kim, H.-S., Kim, Y.-H., Woo, J.-S., & Hyun, S.-J. (2015). An analysis of organizational performance based on hospital specialization level and strategy type. PLoS One, 10 (7). Note: Retrieved from Walden Library databases. Sadeghifar, J., Jafari, M., Tofighi, S., Ravaghi, H., & Maleki, M. R. (2014). Strategic planning, implementation, and evaluation processes in hospital systems: A survey from Iran. Global Journal of Health Science, 7 (2), 56–65. Retrieved from U.S. Department of Health and Human Services, Office of Disease Prevention and Health Promotion. (2016b). Search the data . Retrieved from Valaitis, R. F., Hanning, R. M., & Herrmann, I. S. (2014). Programme coordinators’ perceptions of strengths, weaknesses, opportunities and threats associated with school nutrition programmes. Public Health Nutrition, 17 (6), 1245–1254. Note: Retrieved from Walden Library databases.
Paper For Above instruction
The rapidly dynamic external environment profoundly influences healthcare organizations, demanding that leaders implement strategic controls and monitoring tools to adapt effectively. The scenario of Lake County Medical Practice underscores the necessity for healthcare leaders to navigate external threats, such as reimbursement rate reductions and shifting patient demographics. This paper explores how strategic controls, monitoring tools, and tactical objectives can be decisively employed to address such external challenges, ensuring organizational resilience and sustainability.
Strategic Controls in Healthcare Context
Strategic controls serve as essential mechanisms guiding healthcare organizations through external uncertainties (Walston, 2014). Among these, strategic surveillance and special alert controls are particularly pertinent. Strategic surveillance involves ongoing environmental scanning to detect early signs of external change—a necessity amid reimbursement policy shifts and demographic changes influencing patient volumes. For Lake County Medical Practice, continuous monitoring of CMS policy updates and regional healthcare trends could preemptively inform operational adjustments (Wayland & McDonald, 2016).
Special alert control allows immediate responses to critical external events—such as sudden reimbursement cuts. Implementation of this control can establish rapid-response teams to evaluate financial impacts and pivot care models or revenue strategies swiftly. For example, if further Medicare rate reductions occur, the organization might promptly initiate cost containment or diversify income sources, thus mitigating the financial blow (Sadeghifar et al., 2014).
Monitoring Tools for External Forces
Effective monitoring tools are vital for organizing and visualizing external environmental data. The Balanced Scorecard (BSC) integrates financial, customer, process, and learning perspectives, providing a comprehensive view of organizational performance amidst external pressures (Behrouzi, Shaharoun & Ma’aram, 2014). For Lake County Medical Practice, a BSC could include indicators such as patient retention rates, payer mix, reimbursement levels, and regional healthcare market dynamics.
Dashboards offer real-time visualization of key metrics, allowing leadership to detect deviations early. For instance, a dashboard tracking patient visit trends, reimbursement changes, and operational costs enables rapid decision-making. Gantt charts could be employed to schedule and track critical strategic initiatives—like diversification projects or operational reorganizations—in response to external financial threats.
Tactical Objectives to Address External Threats
Tactical objectives translate strategic measures into actionable steps. For Lake County Medical Practice, two pivotal tactical objectives could be:
1. Diversify Revenue Streams: Developing ancillary services such as outpatient diagnostics, telemedicine, or specialty clinics can reduce dependence solely on Medicare reimbursements (Kim et al., 2015). This diversification could buffer revenue declines and attract a broader payer base.
2. Enhance Patient Engagement and Retention: Implementing targeted outreach for Medicare beneficiaries, such as community health programs or transportation assistance, can improve patient loyalty amid increased travel distances. It also helps attract new patients through positive word-of-mouth, counteracting demographic shifts (Valaitis, Hanning & Herrmann, 2014).
Integrated Approach for Issue Resolution
Addressing external threats at Lake County Medical Practice necessitates a synergistic approach. Deploying strategic controls like environmental surveillance and rapid alert mechanisms ensures early detection and swift response, maintaining strategic agility. Simultaneously, management should leverage monitoring tools—integrating dashboards and balanced scorecards—to continuously track critical indicators, facilitating timely interventions. Tactical objectives like diversifying revenue and engaging patients serve as practical measures aligned with strategic insights, effectively staving off negative financial and operational impacts.
In conclusion, healthcare organizations must harness a combination of strategic controls, robust monitoring tools, and targeted tactical objectives to navigate external challenges effectively. In the case of Lake County Medical Practice, such an integrated strategy enables resilience against reimbursement reductions and demographic shifts, ensuring organizational continuity and enhanced patient care.
References
- Behrouzi, F., Shaharoun, A. M., & Ma’aram, A. (2014). Applications of the balanced scorecard for strategic management and performance measurement in the health sector. Australian Health Review, 38(2), 208–217.
- Kim, H.-S., Kim, Y.-H., Woo, J.-S., & Hyun, S.-J. (2015). An analysis of organizational performance based on hospital specialization level and strategy type. PLoS One, 10(7).
- Sadeghifar, J., Jafari, M., Tofighi, S., Ravaghi, H., & Maleki, M. R. (2014). Strategic planning, implementation, and evaluation processes in hospital systems: A survey from Iran. Global Journal of Health Science, 7(2), 56–65.
- Valaitis, R. F., Hanning, R. M., & Herrmann, I. S. (2014). Programme coordinators’ perceptions of strengths, weaknesses, opportunities and threats associated with school nutrition programmes. Public Health Nutrition, 17(6), 1245–1254.
- Walston, S. L. (2014). Strategic healthcare management: Planning and execution. Chicago, IL: Health Administration Press.
- Wayland, M. S., & McDonald, W. G. (2016). Strategic analysis for healthcare: Concepts and practical applications. Chicago, IL: Health Administration Press.