Rosemont Behavioural Health Center - Case Study Example

MENT OF STRATEGIC INTENT (SOSI) The Rosemont behavioral health center does not have any clear ment of Strategic Intent (SOSI). The management of the hospital has not been able to develop and communicate the standard vision and mission to all departments. STAKEHOLDER ANALYSIS The detailed stakeholder analysis is presented in the appendix. On the basis of this thorough stakeholder analysis the five most important and top stakeholders of the Rosemont behavioral health center are as follow: 1. Patients 2. Physicians 3. Employees 4. Board of directors 5. Potential referring physicians In order to improve the financial condition of the hospital, the management needs to pay attention to these stakeholders and develop healthy relations with all of them. In order to attract more customers, the management of the hospital will have to take into consideration the concerns of the potential referring physicians and other physicians. Along with this in order to provide the patients with high quality services the employees and staff of the health center should be trained and motivated. Hence, the Rosemont behavioral health care center has to immediately work on the development of healthy relations with all these stakeholders, to overcome the financial and other operational issues and challenges. TREND ANALYSIS The detailed trend analysis has been presented in the appendix. The trend analysis allowed to identify the important issues and trends which can have a direct impact on the operations of the Rosemont behavioral health center. The top three trends or issues identified with the help of the trend analysis are as follow: 1. Loss of Medicare contract because of the bad condition of the buildings 2. Reduction in the motivation and morale level of employees of the hospital because of the low salaries 3. Loss of association with the potential referring physicians because of the ineffective networking and linkage building with them Other important issues and trend are as follow: 1. Loss of customers because of ineffective marketing activities 2. Shift from the psychiatric hospitals to managed care 3. Start of different employee assistance programs by large multinational organizations in the United States 4. Increasing partnerships of the psychiatric hospitals with different organizations and institutions including not for profit systems All these issues and trends imply that the management of Rosemont behavioral health center is facing different challenges from both internal and external environment. The management of the health center has to come up with effective and efficient strategies to overcome and rectify all this issues and to exploit all opportunities. SERVICE AREA COMPETITOR ANALYSIS The four main competitors of the Rosemont behavioral health center are as follow: 1. Charter Medical 2. National Medical Enterprises 3. Community Psychiatric Centers 4. Hospital Corporation of America The detailed Porter’s five forces model is presented in the appendix. The overall results of the Porter’s five forces model analysis of the Rosemont behavioral health center are presented in the table below: Bargaining power of Suppliers Moderate to low Bargaining power of Buyers Moderate to high Threat of substitute products or services High Threat of new entrants Low Rivalry among existing competitors High This presents the complete outlook of the service area competitive landscape and demands the management of the Rosemont behavioral health center to formulate effective and efficient strategies accordingly. VALUE CHAIN ANALYSIS Rosemont behavioral health center is lacking in delivering high quality and value added services to the patients. This is because of the lack of integration among the important players of the overall value chain. The staff of the health center is demotivated and is not trained to provide appropriate pre and post services to the patients. Most of the calls from patients are not converted into closed sales. Along with this, every department and functional unit of the health care is working in its own dimension with lack of communication. The management has not been able to communicate the standard strategic direction. In order to provide the customers with high value added services overcome the current financial crisis, it is important for the health center to rectify all these issues and develop effective and efficient value chain as presented in the appendix. SWOT ANALYSIS The detailed SWOT analysis is presented in the appendix. With the help of the SWOT analysis following strategies have been recommended to the Rosemont behavioral health center in order to overcome the current financial and operational crisis: 1. Development of different employee assistance programs for different organizations 2. Getting contracts from the Medicare and Medicaid in order to increase the number of patients 3. Establish association with renowned names in the industry 4. Introduction of different value addition services like ambulatory care program for creating competitive edge over other competitors 5. Development of clear and well communicated Statement of Strategic Intent (SOSI) and vision and mission in order to exploit the opportunities presented in the market 6. Enter into association of merger with some key player in the industry in order to overcome the financials and other associated issues REFERENCE Swayne, L., Duncan, W., and Ginter, P. (2013). Strategic Management of Health Care Organizations, MA: Blackwell Publishing APPENDIX STAKEHOLDER ANALYSIS FOR THE ROSEMONT BEHAVIORAL HEALTH CENTER It is important for the management of Rosemont behavioral health center to perform a stakeholder analysis in order to identify important stakeholders who can influence or effect the formulation and implementation of different strategies and tactics. Important stakeholders of the Rosemont behavioral health center are presented below. The stakeholders are numbered according to their importance and rank order. In order to understand the impact of these stakeholders, it will be good to classify all these stakeholders on the basis of following matrix: MEET THEIR NEEDS Keep satisfied and meet their needs KEY PLAYERS Engage closely and influence actively LEAST IMPORTANT Monitor (minimum effort) SHOW CONSIDERATION Keep informed According to these matrix all identified stakeholders are classified as followed: 6. Patients – patients have high power and have low interest in reference to the Rosemont behavioral health center and for this reason they should be keep satisfied and their needs should be met. 7. Physicians – the working physicians of the Rosemount behavioral health center have high interest and have high power so they are the key players and should be treated accordingly 8. Employees – same is the case of other employees and staff of the Rosemount behavioral health center. They are the key players and should be engaged closely 9. Board of directors – Board of directors are also key players as they have high power and at the same time have high power. It is important for the Rosemont behavioral health center to engage them closely and influence actively 10. Potential referring physicians – the potential referring physicians have low interest and high power so the management of Rosemont behavioral health center should keep them satisfied so that they keep on referring the patients to the health center 11. Independent marketing contractors- same is the case with the independent marketing contractors. The Rosemont behavioral health center should keep them satisfied in order to get more and more patients and clients. 12. Government – the government has low interest and high power so the Rosemont behavioral health center should meet their needs and legal requirements in order to make sure that state and federal governments are satisfied 13. Contract providers – the contract providers have high interest and low power so the Rosemont behavioral health center should show consideration to them and should keep them informed 14. Hospital affiliations – the hospital affiliations have low interest and low power so the Rosemont behavioral health center should monitor them with minimum effort 15. Medicare and Medicaid – the Medicare, Medicaid and other managed care institutions have low interest and high power. For this reason, the Rosemont behavioral health center should keep them satisfied and meet their needs in order to develop profitable and healthy relationships with them, which in turn will benefit the health center. TREND ANALYSIS FOR THE ROSEMOUNT BEHAVIORAL HEALTH CENTER Some of the likely events which can occur in reference to the external and internal situation prevalent in the Rosemount behavioral health center are as follow: 1. Shift from the psychiatric hospitals to managed care 2. Start of different employee assistance programs by large multinational organizations in the United States 3. Increasing acquisitions and mergers in the industry 4. Increasing partnerships of the psychiatric hospitals with different organizations and institutions including not for profit systems 5. Loss of Medicare contract because of the bad condition of the buildings 6. Reduction in the motivation and morale level of employees of the hospital because of the low salaries 7. Loss of association with the potential referring physicians because of the ineffective networking and linkage building with them 8. Loss of customers because of ineffective marketing activities These trends can be analyzed and categorized on the basis of their impact on the organization and the probability of the trend continuing as presented below: Loss of Medicare contract because of the bad condition of the buildings Reduction in the motivation and morale level of employees of the hospital because of the low salaries Loss of association with the potential referring physicians because of the ineffective networking and linkage building with them Loss of customers because of ineffective marketing activities Shift from the psychiatric hospitals to managed care Start of different employee assistance programs by large multinational organizations in the United States Increasing partnerships of the psychiatric hospitals with different organizations and institutions including not for profit systems Increasing acquisitions and mergers in the industry SERVICE AREA COMPETITOR ANALYSIS FOR THE ROSEMOUNT BEHAVIORAL HEALTH CENTER The service area competitor analysis allows the organization to identify and evaluate the important trends and competitive factors in the location the organization is operating and serving the customers. Porter’s five forces model is one of the important strategic tools which can be used to assess and evaluate the service area competitor outlook. This model analyze the industry and competitive landscape on the basis of the five forces which are as follow (Swayne, Duncan, and Ginter, 2013): 1. Bargaining power of suppliers 2. Bargaining power of buyers 3. Threat of substitute products or services 4. Threat of new entrants 5. Rivalry among existing competitors In reference to the Rosemount behavioral health center, the service area competitor analysis on the basis of the Porter’s five forces model is presented below: Bargaining power of suppliers: The bargaining power of suppliers is moderate to low in the industry as there are several suppliers in the industry who supplies the materials and equipment needed by the health centers. Bargaining power of buyers: The bargaining power of buyers is moderate to high in the industry. There are different health care centers and institutions providing the same services to the patients and hence increasing the bargaining power of the buyers. Threat of substitute products or services: The threat of substitute products or services in the industry is high, as managed care is having high influence on the psychiatric hospitals and health care centers. Along with this, different organizations in the United States have started their own employee assistance programs thus leaving a negative impact on the psychiatric hospitals and health care centers. Threat of new entrants: The threat of new entrants is low. The establishment of whole new facility for providing the psychiatric and assistance services to the patients requires lots of investment and efforts. This in turn makes it difficult for the new entrants to enter into the market. Also, the overall industry is experiencing a tough time; hence making the industry unattractive for the new entrants. Rivalry among existing competitors: The rivalry among the existing competitors is high. Different psychiatric hospitals and healthcare centers are striving to compete in the industry. All hospitals and healthcare centers are facing difficult times and are going under restructuring and reorganization in order to survive and compete in the industry. The four main psychiatric centers which are giving tough competition to Rosemont behavioral health center are as follow: 5. Charter Medical 6. National Medical Enterprises 7. Community Psychiatric Centers 8. Hospital Corporation of America VALUE CHAIN ANALYSIS FOR THE ROSEMOUNT BEHAVIORAL HEALTH CENTER The value chain analysis allows the organizations to understand and integrate all processes and players associated with the delivery of service to the end consumers. In order to make sure that the end consumers are provided with high quality end product and services, it is important for the organization to develop and integrate the value chain. The current value chain of the Rosemont behavioral health center is presented below: Service Delivery Pre-Service Unorganized and ineffective marketing and support services Point of Service Only serving inpatient Unmotivated and untrained staff After Service No follow up and unorganized billing system and processes Value Addition Support Activities Organizational Culture No shared vision or culture. The mission and strategies are not communicated to all departments and concerned persons Value Addition Organizational Structure Lack of well-organized structure. Lack of communication among departments Strategic Resources Lack of communication. Each department and function is heading in its own direction The Rosemont behavioral health center should work on improving its value chain in order to provide the customers with high quality services and support services as shown in the table below: Service Delivery Pre-Service Thorough market research and analysis Proper marketing, promotional, and branding activities Point of Service High quality processes for inpatient and outpatient services High patient satisfaction Trained and motivated Staff to present the services to the patients in effective and efficient manner After Service Detailed follow up including clinical and marketing Easy billing and checkout process and procedure Value Addition Support Activities Organizational Culture Well developed and communicated vision and mission statement with shared values, norms, and assumptions Value Addition Organizational Structure Functional organizational structure with well formulated and designated responsibilities to the concerned functional unit Strategic Resources Well developed and integrated financial, human resource, information, and marketing departments and resources SWOT MATRIX FOR THE ROSEMOUNT BEHAVIORAL HEALTH CENTER The SWOT analysis or matrix allows the organization to identify the important strengths and weaknesses of the organization along with the opportunities and threats. Apart from this, the SWOT matrix also facilitate the organization in the process of identifying effective and efficient strategies. The SWOT matrix of the Rosemont behavioral health center is presented below: SWOT / TOWS matrix Strengths Weaknesses 1. Qualified staff and team of doctors 2. Some board of directors have strong networking and PR 3. Experienced staff and senior management 1. Weak financial standings 2. Demotivated staff and employees 3. Old infrastructure and building 4. Lack of communication among departments 5. Lack of proper marketing efforts 6. Lack of shared organizational culture and vision Opportunities S-O strategies W-O strategies 1. Increasing trend among the organizations for developing the employee assistance program 2. Increased activities of the managed care institutions 1. Development of different employee assistance programs for different organizations (S1, S2, O1) 2. Getting contracts from the Medicare and Medicaid in order to increase the number of patients (S1, S2, O2) 1. Development of clear and well communicated Statement of Strategic Intent (SOSI) and vision and mission in order to exploit the opportunities presented in the market (W2, W4, W5, W6, O1, O2) Threats S-T strategies W-T strategies 1. Increased mergers and acquisitions in the industry 2. The association of other competitors with not for profit organizations 1. Establish association with renowned names in the industry (S1, S2, T1) 2. Introduction of different value addition services like ambulatory care program for creating competitive edge over other competitors (S1, S2, S3, T2) 1. Enter into association of merger with some key player in the industry in order to overcome the financials and other associated issues (W1, W3, T1, T2) Read More