The Relevance of Mission Statement in Healthcare Companies - Research Paper Example

 The Relevance of Mission Statement in Healthcare Companies In contemporary society, health insurance is indispensable to the lives of many people. This is due to the fact that people cannot predict when they would become ill or could suffer an injury. Therefore, it is necessary to carry health insurance for a rainy day. As of 2000, it was reported that 38.7 million people living in the US were not covered by any kind of health insurance ( Macmillan 3). For this reason, the healthcare industry is very competitive since they are many companies offering this type of service. This paper tries to explore the mission statements of three healthcare companies and evaluate the relevance of such mission statements against their action plans. A mission statement is very important for an organization since it is a part of the organizational purpose. The mission is the reason why such organization or company exists. Although a company usually operates to produce profit or serve society, this cannot be considered valid mission statements. The primary role of a mission statement is towards the outward environment: its customers, stakeholders, consumer market as well as interests. Usually, mission statements vary depending on the business of a certain organization. Mission statements can be descriptive of a company’s social and corporate concerns, quality of service, quality of product , location, or other competitive advantages perceived by the customers. For some, mission statements are not just reason for being but corporate philosophy as well. Importance of Mission Statements Before comparing the mission statements of the three healthcare companies it must be understood how mission statements fulfill a crucial role in the organization. It is important to recognize the concepts of King and Cleland ( 2006 ) who have outlined the importance of creating well-written mission statements: 1. To ensure unanimity of purpose within an organization 2. To provide a basis or standard for allocating organizational resources 3. To establish a general tone or organizational climate 4. To serve as focal point for individuals to identify with the organizations purpose and direction and to deter those who cannot from participating further in the organizations activities 5. To facilitate the translation of the objectives into a work structure involving the assignment of tasks into responsible elements within the organization 6. To specify organizational purposes and then translate these purposes into such a way that the cost , time and performance parameters can be assessed and controlled ` The above mentioned rationale for creating mission statements would serve as a guide in criticizing the mission statements that would be presented. In addition to this, due to the changing needs of modern organizations, mission statements should possess the following characteristics: it is a declaration of attitude and outlook and must be broad enough to appeal to its diverse stakeholder ( David, 2006, p.58). Multiculturalism is an important factor that must be considered nowadays by organizations due to the growth of diverse population. The Mission Statement of Blue Cross BlueShield of Western New York (WNY) The following mission statement is from the website of Blue Cross and Blue Shield : “We are an association of Blue Cross and Blue Shield companies dedicated to protecting and strengthening the Blue Cross and Blue Shield Brands, supporting the companies individually and collectively in their pursuit of Blue business and preserving the private healthcare market. We will operate in recognition of our unique structure in which the Blue Cross and Blue Shield companies are our customers, our Member Licensees and our governing Board. The Association leads a System-wide coordinated effort. Establishes a common direction and cooperation between the Association and the 39 Blue companies.” ( bcbcs.com). The mission statement of BCBS strives to establish the core purpose of the organization in all its branches. Its uniqueness is its selling point: structure. BCBS supports 39 companies that must maintain its quality service so people would perceive its consistency as strength. Indeed, it is a challenging mission since each state has its own demographic features as well as state laws. Nevertheless, the company has received numerous awards such as the AARP Bernard Nash Award for Innovation in 2007 as well as listed as one of the “ best places to work in healthcare” ( “ Awards and Recognition”, bcbcs.com). This is a manifestation that the company provides good service to its internal customers – the employees which results to higher productivity and better service. The satisfaction of highly-motivated employees reflects on their work attitude so clients of BCBS would enjoy the services of this company. Although BCBS mission did not elaborate on diversity, it is committed to such issues since it has created a council for diversity; thus, BCBS is an organization attuned to the changing market. Univera Community Health: Mission Statement The Mission Statement of this company is “To serve the needs of the underserved and uninsured in Western New York…” ; furthermore ,this would be accomplished by “ providing affordable insurance options, increased access to health care, improving the quality of care through the cooperative efforts of its partners. ( univeracommunityhealth.org ). This company is different from other healthcare providers since it caters even to people not covered by insurance. The key to this company’s unique purpose is its ability to get good sponsors such as Erie County Medical Center ( ECMC) Healthcare Network which is a top modern health care provider in the country. The main focus is residents of Western New York regardless of their financial abilities . Apparently, Univera’s mission statement is all about public service although it is a private not-for –profit organization. Weighing its mission statements against its programs, it is definitely a healthcare organization that lives up to its mission. Their mission statement is simple, concrete, concise which makes it easy to understand. A lofty mission statement is not the measure of a company’s performance, so a simple mission statement is actually better. The third organization is Independent Health with a “ mission to improve quality, access and affordability of care.” ( independent health.com). It has the same target market with Univera – Western New York although its services is spread nationwide. It is similar to BCBS in terms of workplace environment since it was also cited as one of the best employers to work for . Its main difference with the two organizations is that it has its own foundation . As a foundation, its concerns are more on educating the public and promoting health programs. Independent health has long served New York since it is one the earliest HMOs in Western New York and acknowledged as one of the nation’s best healthcare plan ( Independent Health’s History , independent health.com). It speaks more in action compared to its mission statement which I suggest must be reworded. Perhaps, its early inception was suited to simpler goals but as it expanded, it needs a mission statement that has a declarative attitude as Field suggests. This HMO needs a more expanded vision that would declare to all its stakeholders of its strong market presence as well as good qualities. In conclusion, mission statements are very important to organizations since they communicate to the external market the reasons for being. Each of the HMOs mentioned have their own unique characteristics that create a niche. BCBS has its unique structure and good employer programs, Univera has strong sponsors and great social responsibility while Independent healthcare is unassuming yet very reliable and provide quality service. All three organizations have mission statements that clearly state their purpose and only Independent’s mission must be elaborated. Indeed, a mission statement is only as good as the organization’s action. Works Cited : "BCBSA Mission." Blue Cross Blue Shield Association - Leading the Future of Healthcare. N.p., n.d. Web. 12 Apr. 2010. . Cleland, David I., and Lewis R. Ireland. "Project management: strategic design ... - Google Books." Google Books. Mc-Graw Hill, n.d. Web. 12 Apr. 2010. P.249.. David, Fred R.. "Strategic management: concepts and ... - Google Books." Google Books. , 2006. Web. 12 Apr. 2010. . "Health Insurance." Current Issues: Macmillan Social Science Library. New York: Macmillan Reference USA, 2003. "Sponsors - Univera Community Health." Univera Community Health, a not-for-profit company that provides health insurance to the uninsured. N.p., n.d. Web. 12 Apr. 2010. . “Transforming Health Care in Western New York”. Independent health. Web 10 Apr 2010. Read More