Question

Discuss the key steps associated with strategic plan implementation in a healthcare organization. What are some of the challenges to implementation that a governing board may encounter? Your response must be at least 200 words in length.

Answer 1

The healthcare field is always changing and progressing at a rate unlike any other. Over the past few decades it has become more and more important to plan for the future in order for any healthcare practice to be successful for years to come. By planning for the unknown, hospitals, clinics, private practices and other organizations in the healthcare field can be better equipped for whatever may come along down the road.From the financial side of running an organization, to structural decisions within the hospital or clinic, planning is a necessity. A hospital strategic plan allows for more efficiency in all aspects of the business of running a practice, no matter how big or small.Strategic health planning involves creating objectives and setting goals for where a company would like to go in the future, and then constructing a plan to achieve these objectives. In this industry especially, healthcare planning must take into account potential government policy changes, technological advancements and economic trends that could change an organization’s operations in a significant way.One key factor that should be the basis to strategic planning in healthcare organizations is the organization of the institution. Understanding the organization of the institution.

some of the key steps of strategic planing in a healthcare organisation are

• Review/Develop Vision & Mission:Although many organizations have created vision, mission, goals and objectives, these elements need to be reviewed on a continuous basis. The reason lies in the ever‐ changing environment and business constraints forced upon organizations through government, payors, competition, physicians, patients, vendors etc.   Each internal department’s vision and mission must be aligned and supportive of the overal business strategy.
• Business and Operational Analysis:One of the key objectives of strategic planning is to understand internal strengths and weaknesses as well as external threats and opportunities, i.e. a SWOT analysis. It is critical to engage stakeholders from across the organization – and vendors as well ‐ to provide their points of view. This involvement will not only improve your plan, it will create organizational ownership, which will be important for executing and sustaining the plan.
• Develop and Select Strategic Options:All possible strategies should be developed based on the inputs. Then the list should be narrowed down to strategies that are within the guiding priniciples of the organization. Guiding principles identify the “ground rules” and parameters that will inform decision making for your organization. For example, will your organization consider merging with or acquiring another organization to meet its goals? Do you want to outsource certain functions?
• Establish Strategic Objectives:This step narrows the list even more by applying various models (financial, etc.) to each strategy to determine the effect it will have on the organization. This step is also where key measures and timelines are established or validated. Once the strategies are tested in this way, it can be put together to form the strategic plan. The plan’s components should be specific, measurable, achievable, realistic and time‐bound (SMART).  
• Strategy Execution Plan:Now a plan must be developed to implement the chosen strategic options. To be successful, you will need organizational ownership of the plan, which includes not only executive sponsorship, but also the active involvement of all staff members. Communicate the plan to all levels of the organization. Find champions in all areas. Define what is “in it for them.” The clear (SMART) goals and staff involvement in the initial committe helps.
• Establish Appropriate Budget and Resource Allocation:Quite often, once the strategic assessment and plan is complete, leadership may not be able to allocate or assign appropriate funding, staffing or other resources to specific initiatives. The result of improper or inadequate budgets and staffing usually ends with failed strategic initiatives. It is critical to receive leadership commitment on budget and resources before execution of the strategic plan.  
• Execution Review:One of the critical success factors for effective strategy deployment is constant and ongoing progress reviews. Appropriate reporting mechanisms must be included in the deployment. When issues, challenges, deviations or obstacles are identified, decisions and remediation are necessary – some which may even change the strategic direction. Therefore, it is important to decide who is involved in the review process, and what exactly is reviewed.

some of the challenges faced by the healthcare organization to implement strategic plans are

• financial goals of the organization:​​​​​​​​​​​​​​Financial goals are different for every institution. Focusing on specific, attainable goals for the future of any organization’s finances is key in ensuring that the strategic plans that the organization makes will be beneficial in the long run.Looking into the implications that the change that come with new plans for the future will have on finances is key in making strategic decisions.Setting goals prior to strategic planning will help ensure these plans will positively impact the organization in the future.

• impact of the implemented changes on financial goals.

• needs of the population that the organization serves:

  Healthcare systems and hospitals are designed to serve patients however they need. Although the demand for healthcare institutions will always be high, the way in which these institutions will be needed may change.Understanding future market trends and industry directions is important in order to plan ahead for what patients will need.

• financial gains of growth through expansion in location, new access points, and services before beginning to plan.

• bridge the gap in achieving critical success factors:Many times healthcare systems understand the success factors that are necessary to carry out the institution’s vision, but have difficulty implementing them in day to day functions. Strategic planning should incorporate a way to carry out these factors so that success can be achieved efficiently.

• Understanding the Healthcare Market:

  The goals set by an organization cannot be carried out unless there are sound financial and organizational plans set in motion. Unfortunately, understanding the healthcare market is tricky when the system is so volatile. The cost of medical technology and other funds necessary to run a functional healthcare business is not steady.Changes in policy and law occur periodically, increasing the need for strategic planning in healthcare. Without the proper knowledge it is not easy to know where prices are going, and in which areas to save. Evaluating which investments are more risky than others is important to ensure every decision made is one that will be beneficial down the road.In order for any business, especially a hospital or medical practice, to stay afloat, long term goals must be determined and eventually met for the longevity of the business. To do so, an analysis of the local markets and the industry as a whole must be conducted to predict the future of these markets.