Imagine the following: Now that you have completed your review of the Stevens District Hospital Strategic-Planning Scenario in previous weeks’ assignments, you have been asked to give a presentation to the hospital’s governing board. This board is comprised of the hospital’s president, 4 business leaders from the community, and 3 medical staff leaders. Assignment PreparationUse components from your previous weeks’ assignments for this assignment and update them with faculty feedback you received. Assignment DirectionsCreate a 12- to 16-slide presentation, including detailed speaker notes, for the hospital’s governing board in which you summarize your analysis and goals created. In your presentation:
Provide an overview of the market.
Provide the SWOT analysis.
Summarize the strategic goals created for Stevens District Hospital, including the rationale for the goals.
Describe itemized resources that may be needed.
Explain how the strategic plan provides focus and direction for Stevens District Hospital.Give
1
Stevens District Hospital
Student’s Name: Akeshia Davis
University of Phoenix
Course: HCS499 Healthcare Strategy Capstone
Professor: Amy Shoales
Date: 06/13/2022
2
Stevens District Hospital mission and vision statement and rationale
The mission statement I picked for Stevens District Hospital is “to improve health by
providing high-quality care. A mission statement refers to a corporation’s business, its objectives,
and the approach required to meet the set objectives (Lica, 2021). I settled on this decision because
the mission statement abovementioned defined the hospital’s business, which is care. The mission
statement also defined the hospital’s objectives by stating that which is based on improving health.
The statement stated how Stevens District Hospital would meet its objectives by stating that it
would work on providing high-quality care.
Conversely, the vision statement I selected for Stevens District Hospital was “to provide
the broadest range of service in the country.” A vision statement states a company’s desired future
position (Lica, 2021). I settled on this vision statement because it is futuristic, where it
demonstrates the company’s long-term goal. The statement clarifies the future desired position of
Stevens District Hospital by stating that it aspires to provide the broadest range of services
throughout the country. This statement is also appropriate because it is believable where it can
enhance motivation amongst employees, and sound realistic to clients. With these mission and
vision statements, the district hospital can combine them to offer a statement demonstrating the
company’s values, goals, and purpose.
Strength of mission and vision statement selected.
The selected mission vision statement is concise, simple, and, most importantly, they are
easy to remember. Another strength of Stevens District Hospital’s mission statement is that it is
primarily centered on the core goal of offering high-quality care. The other strength of the mission
statement is that it captures the primary principle of what the clinic will attain and how it will be
attained (Wright, 2022).
3
The hospital’s mission statement is a single thought, which can be easily memorable and
easy for anyone throughout the corporation to concentrate on them. The mission statement also
emphasizes the values and policies Stevens District Hospital wants to hold dear. Also, the mission
statement defines the primary competitive sphere in which the corporation operates. Lastly, the
hospital’s selected mission statement motivates employees to achieve short and medium-term goals
(Lica, 2021).
There are various strengths to the selected vision statement, such as it is short and easily
memorable. The vision statement also is specified to the company’s business describing an
exceptional outcome the hospital can offer (Wright, 2022). Also, the vision statement used words
that can be understood by everyone, both inside and outside the organization, without requiring
interpretation (Wright, 2022). The vision statement also demonstrated ambition but not too much
to make it seem unbelievable. Another strength of the vision statement is it states the desired
position, which is to offer the broadest range of services in the country.
Weaknesses of mission and vision statement not selected
The initial mission statement is accurate; it is short, concise, and simple. However, the
vision statement that follows is overly ambitious where the district hospital aspires to be the highest
level of service throughout the country. A good vision statement should be believable
(Wright, 2022). The third mission statement is long and imprecise. This impreciseness is a
weakness where the statement is not easily memorable. Also, its accompanying vision statement
has a weakness where it does not necessarily mention the desired position of the Stevens District
Hospital.
How the mission and vision statement drive strategic plan
4
The primary aim of a strategic plan is to sync an organization’s mission with its vision
(AchieveIt, 2018). When an organization lacks a vision and a mission, its plans can be termed a
vacuum where the mission signifies a plan’s starting point while the vision signifies the destination.
Conversely, the strategic plan signifies the roadmap, which aids in navigating from one point to
the other (AchieveIt, 2018). The Stevens District Hospitals is majorly centered on a mission and
vision statement, which can offer a powerful approach for strategy improvement. With the mission
and vision statement of the hospital being up to the task, it is almost definite that it will maximize
the chances of the strategic plan’s success.
With Stevens Hospital’s mission and vision statement, the organization can decide what
they plan to achieve and ways they can offer the patients with standard care through broadened
health care services (AchieveIt, 2018). Contemporary clients are discerning while raising
expectations on the standard of care they anticipate getting from the hospitals. Moreover, clients
might prefer the particular incorporation of progressive technology. Such expectations are what
the Stevens District Hospital conveys in the mission and vision statement (AchieveIt, 2018). When
clients are admitted to the facility, they already understand they will acquire high-quality care. The
mission and vision statement drives the strategic plan by informing clients that they are suited for
their unique needs.
Additionally, the mission and vision statement might aid numerous workers in deciding if
they will fit within the Stevens District Hospital workplace culture (AchieveIt, 2018). With the
mission and vision statement, recruits are admitted while understanding what the organization
represents before applying for the job or while at the interview (AchieveIt, 2018). The hospital’s
mission and vision statement drive the strategic plan of the organization by igniting passion
amongst workers.
5
The mission and vision statement drives the strategic plan where it facilitates engaging the
appropriate individuals within the appropriate time and place and doing the right thing. Moreover,
despite Stevens District Hospital abiding by the societal standard of care through its mission and
vision statement, it also ensures they are ethical (AchieveIt, 2018). An ethically-based mission and
vision statement drive the strategic plan where it informs the various workers of the organization
what is expected of them, quality care.
6
References
AchieveIt. (2018). The Link Between Mission, Vision, and Strategy. Strategic Planning &
Business Strategy Execution Software. https://www.achieveit.com/wpcontent/uploads/2014/02/The-Link-Between-Mission-Vision-and-Strategy.pdf
Lica, S. (2021, September 1). Healthcare mission, vision, & values statements: A guide. Berxi
Professional Liability Insurance: Get More & Spend
Less. https://www.berxi.com/resources/articles/healthcare-mission-vision-and-valuesstatements/
Wright, T. (2022). How to write a good vision statement, step-by-step and with examples.
Strategy Software for Planning & Execution | Cascade
Strategy. https://www.cascade.app/blog/write-good-vision-statement
HCS/499 v5
SWOT Analysis
Student’s Name: Akeshia Davis
University of Phoenix
Course: HCS499 Healthcare Strategy Capstone
Professor: Amy Shoales
Date: 06/20/2022
Copyright 2022 by University of Phoenix. All rights reserved.
SWOT Analysis Worksheet
HCS/499 v5
Page 2 of 5
SWOT Analysis Worksheet
External Factors
Internal Factors
SWOT Analysis Table
Strengths
1. Good reputation
2. Special expertise
3. Wide range of market
4. Wide range of services
Weaknesses
1. Marketing deficiencies
2. Staff shortage especially medical
staff
3. Lack of essential diagnostic tests
such as MRI
4. Lack of newer technology
Opportunities
1. New market
2. New technology
3. Mix of public and private
medical insurance systems
4. New innovation service
Threats
1. Insurance plan changes
2. Increased competition
3. High cost of equipment and supplies
4. Unforeseen emergencies.
SWOT Analysis
SWOT analysis is a technique used for assessing the four aspects of the business,
including Strengths, Weaknesses, Opportunities, and Threats. It provides an opportunity for the
company to analyze its best practices and some of the chances for change. It is also a successful
strategy for future planning. It analyzes the internal and external factors in the organization, of
which the company may have control over factors and lack control over others. There are
numerous reasons for Steven District Hospital to conduct a SWOT analysis (Benzaghta et al.,
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SWOT Analysis Worksheet
HCS/499 v5
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2018). The SWOT analysis will enable the hospital to challenge the risky assumptions and
uncover the blind spots in the hospital’s performance. The hospital should use it carefully and
collaboratively as it will provide new insights into the business’s current situation and help
develop the right strategy for the business. In addition, the SWOT analysis will enable the
business to understand the key issues affecting the business but does not provide solutions to the
problems (Benzaghta et al., 2018).
One of the major advantages of conducting a SWOT analysis is that process has little or
no cost, as anyone can perform it. The analysis can be used to address complex problems within
the hospital and provide ways to improve the business without incurring the cost of employing
an external consultant. It further allows the hospital to understand the key issues affecting their
business (Benzaghta et al., 2018). In addition, the SWOT analysis will enhance the
understanding of the hospital, take advantage of the strengths, capitalize on the opportunities,
address the weaknesses, and deter threats. Besides, the SWOT analysis helps the business
develop the goals and strategies in achieving those goals (Namugenyi et al., 2019).
A SWOT analysis has limitations, as this is the first stage in the planning of the business;
complex issues will require in-depth research and analysis. It may be difficult to address
uncertain or two-sided factors as both may be a strength and, at the same time, a weakness
(Namugenyi et al., 2019). SWOT analysis may be limited as it does not provide solutions or
offer alternate decisions; it does not prioritize issues and provides much information which may
not be useful. Besides, the SWOT analysis is limited as it can generate many ideas that do not in
choosing the best (Namugenyi et al., 2019).
Some of the strengths of the Steven District hospital is that the hospital has a wide range
of services and a wider market. This company has one hundred and seventy-two-bed care beds.
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SWOT Analysis Worksheet
HCS/499 v5
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The city’s location is also convenient as the hospital is located in Jefferson City, which has
around fifty thousand patients and over eight thousand regional markets. The hospital also offers
various services, including emergency care, rehab, and medical and surgical units. Some of the
weaknesses experienced by the hospital include staff shortage and lack of newer technologies.
The hospital has continually experienced a shortage in medical staff, especially the primary care
staff, oncology, and orthopedics which affects the normal functioning of the hospital. Some of
their competitors have introduced e-visits, a newer technology that will enhance service delivery
and cause a shift of patients to the competitor’s side. The hospital lacks some of these newer
technologies that will promote patient satisfaction and service delivery.
The opportunities presented at Steven District Hospital include a mix of public and
private medical insurance and a new market. The hospital has a wide range of new markets from
the eighty-five thousand surrounding regions. With proper marketing, the hospital will get newer
patients to their facility. The hospital has a mix of public and private medical insurance systems,
which is an opportunity for them as they can get both patients from the two different insurances.
This increases their market base. The threats that the company is facing are increased
competition and unforeseen emergencies. In the previous year, the competitor hospital had a
market-share distribution of forty-three percent, which is higher when compared to the Steven
District Hospital at thirty-five percent. In the last five years, the competitor hospital was as low
as thirty percent compared to Steven District Hospital, which was at forty-eight percent.
Unforeseen emergencies can occur anytime, posing a risk to the hospital and can affect the
running of the hospital. Therefore, the hospital needs to plan for any unforeseen crisis.
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SWOT Analysis Worksheet
HCS/499 v5
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References
Benzaghta, M. A., Elwalda, A., Mousa, M., Erkan, I., & Rahman, M. (2021). SWOT analysis
applications: An integrative literature review. Journal of Global Business Insights, 6(1),
55-73. https://doi.org/10.5038/2640-6489.6.1.1148
Namugenyi, C., Nimmagadda, S. L., & Reiners, T. (2019). Design of a SWOT analysis model
and its evaluation in diverse digital business ecosystem contexts. Procedia Computer
Science, 159, 1145-1154. https://doi.org/10.1016/j.procs.2019.09.283
Copyright 2022 by University of Phoenix. All rights reserved.
1
Financial Goal
I.
To grow Stevens District Hospital’s net revenues from services to patients by 10% within
the next five years.
II.
The Stevens District Hospital’s mission is “To improve health by providing high-quality
care, a comprehensive range of services, and exceptional service.”
III.
There are a few milestones necessary to progress in the attainment of the financial goal.
Economic Goal
I.
To minimize the Stevens District Hospital’s operating cost by 5% within the next five
years.
II.
The economic goal is well aligned with the hospital’s mission and vision statements.
III.
There are several milestones key to the attainment of the strategic economic goal.
Legal or Regulatory Goal
I.
To reduce Stevens District Hospital’s annual medical malpractices claims by 5% within
the next five years.
II.
The legal goal is aligned with the hospital’s mission and vision statements.
III.
One milestone that needs to be achieved in the pursuit of the goal is investigating factors
that lead to medical malpractices.
Risk- or Quality-Improvement Goal
I.
To improve Stevens District Hospital’s HCAHPS scores by 5% within the next five
years.
2
II.
The HCAHPS, or Hospital Consumer Assessment of Healthcare Providers and Systems,
is a standardized survey used by hospitals to evaluate patients’ views regarding hospital
care (Mercier et al., 2021).
III.
One milestone in the pursuit of the strategic goal will be the determination of all the key
areas that patients evaluate in the HCAHPS survey.
HCS/499 v5
Stevens District Hospital Strategic-Planning Scenario
Background
Stevens District Hospital is a 162-bed acute care hospital that is qualified as a not-for-profit facility. The hospital was originally a county-owned
facility, and its status was transferred to an independent facility three years ago. The hospital receives no external funding from government
agencies for operations. The hospital is accredited by The Joint Commission and received reaccreditation during their triannual survey last year.
The hospital has an aggressive quality-management program and a low volume of medical malpractice claims. The hospital is in Jefferson City,
which is a city of 50,000 people with 80,000 in the regional market. The hospital provides a general range of acute care services, including
medical/surgical, rehab, and emergency care.
Current Performance Analysis
Current Mission and Vision Statements
Our mission: To improve health by providing high-quality care, a comprehensive range of services, and exceptional service.
Our vision: Stevens District Hospital and its affiliates will be the health care provider of choice for physicians and patients. Our five-year vision is
to create a large, multispecialty physician practice system that would include at least six family practice physicians and specialists in cardiology,
oncology, and women’s services. Currently, the hospital employs three family-practice physicians, one obstetrician, one medical oncologist, and
one non-invasive cardiologist.
Previous Strategic Plan Review
Goals and Progress Table
Goals
Progress Toward Meeting Goals
Increase market share by recruiting three family practice
physicians.
During the past year, the hospital was able to recruit only one family-practice
physician to increase primary care market. The limited number of state
medical school graduates makes local recruitment difficult.
Improve quality HCAHPS scores in all six criteria to a
baseline of the 85th percentile.
The hospital improved HCAHPS scores in four of six criteria. Lagging
elements in HCAHPS scores are inpatient patient satisfaction and primarycare patient satisfaction.
Copyright 2022 by University of Phoenix. All rights reserved.
Stevens District Hospital Strategic-Planning Scenario
HCS/499 v5
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Market Forces Affecting the Hospital
Volumes
Volume Changes Last Year Versus This Year
30000
26292
25000
20930
20000
15000
Last Year
10000
5000
6365 7284
4458 5147
This Year
405 472
0
Admission
ER Visits
Deliveries
Surgeries
Last Year
4458
20930
405
6365
This Year
5147
26292
472
7284
Patients
The continued growth of chronic disease will require changes to the care-management model.
Percent of Population by Age Table
Age Ranges
% Five Years Ago
% Five Years From Now
Under 18
24%
18%
18–44
46%
32%
45–65
26%
30%
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Stevens District Hospital Strategic-Planning Scenario
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Age Ranges
Over 65
% Five Years Ago
4%
% Five Years From Now
20%
More than 53% of residents have at least some college education, with just over 29% having an associate’s, bachelor’s, or graduate degree. More
than 90% of residents have at least a high school diploma. The average unemployment rate in the county is 9.9%:
Market Share Distribution Percentage Comparison Table
Hospital
Market-Share Distribution % Five
Years Ago
Market-Share Distribution % Last
Year
Stevens District Hospital
48%
35%
Competitor Hospital
30%
43%
Out-of-County Hospitals
22%
22%
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Stevens District Hospital Strategic-Planning Scenario
HCS/499 v5
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Figure 1: Patient Origin by Zip Code
93921,
12%
92106,
16%
96101,
52%
94963,
20%
Figure 1: In the Patient Origin by Zip Code pie chart, 96101 is Stevens District Hospital zip code and 94963 is major competitor hospital zip code. 52% are from
96101, 20% are from 94963, 16% are from 92106, and 12% are from 93921.
Increases in the percent of population with chronic disease and contributing factors will change significantly over the coming five years.
Chronic Disease Predictions
26%
5 Years Ago
22%
5 Years Ahead
15%
12%
12%
5%
5 Years Ago
Obesity
15%
Diabetes
5%
Heart Disease
12%
5 Years Ahead
26%
12%
22%
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Stevens District Hospital Strategic-Planning Scenario
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Payment
There will be continued focus on pay for performance and increased wellness programs. The Affordable Care Act (ACA) is leading to more people
being covered; however, there are often high deductibles.
The median household income for county residents is $59,548. On average, households in the county earn more than the state median household
income of $44,446 and more than the national average of $53,650. The addition of a new automotive manufacturing plant to the local market next
year is projected to add 1,500 production line jobs and 300 administrative jobs by year end. Median income for the production positions is
estimated at $45,000 and will provide health, vision, and dental insurance benefits.
Percentage of Population by Insurance
Figure 2: Current Payer Mix
Uninsured, 9%
Other, 2%
Medicaid, 35%
Commercial,
24%
Medicare, 30%
Figure 2: The Current Payer Mix pie chart shows that 35% are covered by Medicaid, 30% are covered by Medicare, 24% are covered by commercial insurance,
9% are uninsured, and 2% are noted as “other.”
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Stevens District Hospital Strategic-Planning Scenario
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Figure 3: Projected Payer Mix in 5 Years
Uninsured, 4%
Other, 2%
Medicare, 38%
Commercial,
32%
Medicaid, 24%
Figure 3: The Projected Payer Mix in 5 Years pie chart shows that 38% are covered by Medicare, 24% are covered by Medicaid, 32% are covered by commercial
insurance, 4% are uninsured, and 2% are noted as “other.”
As part of your review of this data, consider the following factors:
•
A portion of the population will become Medicare eligible.
•
The addition of manufacturing positions that include benefits will increase commercial insurance coverage.
•
Changes from the ACA will increase the number of patients in the market with insurance coverage.
Employers
There is expected growth in large employers with the addition of the automotive factory in the northwest sector of the county.
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Stevens District Hospital Strategic-Planning Scenario
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Physicians
The continued shortage of medical staff, especially in orthopedics, oncology, and primary care, will require increased recruitment efforts.
Competitors
Hanover County Hospital, which is the other hospital in the county, has an updated facility that has drawn more market share to its facility.
Competitor Analysis Table
Competitor Name
Hanover County
Hospital
Competitor Type
Primary competitor
Key Areas of Competition
•
•
Facility upgrade
Quality scores
New Programs and Facilities
•
•
•
Medical Center
Located in County
South of Stevens
District Hospital
Primary competitor
Retail Pharmacy
Instant Clinic
Secondary competitor
•
•
•
Physician clinics
Financial stability
Low acuity office visits
•
•
•
Risk to Market Share
Significant renovation of
core hospital to update
aesthetics
Added new wide-bore
MRI machine last year
Reached the 95th
percentile in five of six
HCAHPS categories
•
E-visits with specialists
Low debt and high cash
on hand
•
Pharmacy added instant
clinic in north part of
county 6 months ago
•
•
•
•
Drawing patients to newer
facility
Accommodating patients
with a wider range of body
weights
Patient perception of
higher quality and patient
satisfaction
Drawing patients out of
primary and specialty care
at Stevens District Hospital
Ability to cash-flow
projects
Loss of patients from
primary care physicians’
practices
Technology
A competing hospital has added e-visits for physician practices, which is causing a shift of patients to the competitor hospital’s physician practices .
Copyright 2022 by University of Phoenix. All rights reserved.
Stevens District Hospital Strategic-Planning Scenario
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Regulatory Changes
Health care reform through the ACA has increased the number of patients with some form of insurance payment. These patients are now seeking
care from a primary care physician in greater numbers. Stevens District Hospital struggles with accommodating patient scheduling requests to
establish care with a primary care physician.
Planning Components Explanation
Planning Components Explanation Table
Components
Goal
Objective
Actions
Definition
Organization goals that cover broad
strategic issues, such as quality,
finances, and growth
Broad action items that address
organizational goals, such as
increased market share, increased
use of technology, and increased
physician satisfaction
Action item that meets an objective,
such as implementing EMR,
renovating physician lounge, and
Examples
•
•
Improve HCAHPS scores by
5%.
Improve operating margin by
3%.
Measurement
•
•
Percentage increase in
operating margin
Percentage change in
market share
•
Increase market share in
96103 zip code by 5%.
•
Improve emergency
department patient
satisfaction survey by 5%.
•
Percentage change in the
emergency department (ED)
satisfaction survey
•
Grow urgent care visits by
10%.
•
Percentage change in
urgent care visits
•
Implement urgent care
center in north zip code.
•
Number of patient visits at
new urgent care center
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Stevens District Hospital Strategic-Planning Scenario
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Components
Definition
Examples
increasing marketing for specific
products
•
Purchase tablets for
physicians for EMR
rounding.
Financial Summary
Financial Summary Table
Revenues and Expenses
This Year (In $)
Last Year (In $)
n/a
n/a
Net revenues from services to patients
343,737,280
344,726,245
Other operating revenues
16,846,309
20,311,534
Total operating revenues
360,583,589
365,037,779
Operating Expenses
n/a
n/a
Salaries and benefits
192,053,379
182,853,245
Supplies and other expenses
130,173,477
135,560,131
Depreciation
18,969,799
20,644,157
Interest
2,695,623
2,226,437
Foundation
628,184
1,182,308
Total operating expenses
344,520,462
342,466,278
Income From Operations
16,063,127
22,571,501
Operating Revenues
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Measurement
•
Percentage increase of
EMR use