Question

What are Tenet Healthcare's: Tangible and Intangible Resources Value Chain Analysis Core Competencies and Sustainable Advantages Summary of Firm Resources & Capabilities

Answer 1

Value Chin Analysis : For a helth care industry Value is equal to the Health outcomes per Costs of delivering these outcomes.

The actors who play the roles of the Payers, Fiscal Intermediaries, Providers, Purchasers or Producers vary based on the context of the healthcare system of the country.

• Payers in the Healthcare Value Chain maybe the Government, Employers (or Corporate) or Individuals. In a Beveridge/National Healthcare System the payer is the Government, in a Bismarck Healthcare System the payer is the Employer/Individuals and in other countries where private healthcare dominates the public healthcare system, the payer again is the Individual.
• Fiscal Intermediaries consists of Insurers, TPAs (Third Party Administrators) or HMOs (Health Maintenance Organizations, especially popular in the USA).
• The Providers are the healthcare providers which are the Hospitals, Clinics, Physicians, Diagnostic Centres, and Pharmacies etc.
• The Purchasers are the Wholesalers, Suppliers, or Group Purchasing Organizations of the equipment/drugs etc.
• The Producers comprise of the Drug, Equipment or Device Manufacturers.

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A value chain as was termed by Michael Porter is a chain of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.

The form of value chain as adapted within the complex framework of the Healthcare domain and coined by the Wharton School of Management is called the Healthcare Value Chain and consists of the following actors – Payers, Fiscal Intermediaries, Providers, Purchasers and Producers.

ayersIntermediaries Fiscal Providers Purchasers Producers! Intermediaries »

Fig. 1: Healthcare Value Chain

The actors who play the roles of the Payers, Fiscal Intermediaries, Providers, Purchasers or Producers vary based on the context of the healthcare system of the country.

• Payers in the Healthcare Value Chain maybe the Government, Employers (or Corporate) or Individuals. In a Beveridge/National Healthcare System the payer is the Government, in a Bismarck Healthcare System the payer is the Employer/Individuals and in other countries where private healthcare dominates the public healthcare system, the payer again is the Individual.
• Fiscal Intermediaries consists of Insurers, TPAs (Third Party Administrators) or HMOs (Health Maintenance Organizations, especially popular in the USA).
• The Providers are the healthcare providers which are the Hospitals, Clinics, Physicians, Diagnostic Centres, and Pharmacies etc.
• The Purchasers are the Wholesalers, Suppliers, or Group Purchasing Organizations of the equipment/drugs etc.
• The Producers comprise of the Drug, Equipment or Device Manufacturers.

Physical chains are only as strong as their weakest link and its reach is limited to as far as they stay connected. In fact any Value/Supply Chain consists of 3 critical flows and they are: money, information and products, be it from ship to shop or cow to customer or healthcare to a patient. The actors cannot afford to work in a silo-ed mentality and there has been an increase in collaborative long term partnerships, contracts with local product manufacturers, knowledge sharing and inter-firm trust to have a win-win situation.

The effects of improving the Supply Chain process in a hospital cannot be undermined and the overstocking of supplies, poor purchasing strategies, stock-outs of vital drugs can be a costly affair. In fact materials management practices and the use of Information Systems are finding its way from the other sectors especially from retail to the healthcare sector.

Core Competencies : Healthcare is a dynamic and complex field that requires its administrative professionals to be flexible and adaptive. Healthcare administrators not only have to be robustly trained in the various intricacies relative to providing patient care, but they also have to possess the interpersonal skills and business savvy required to manage healthcare organizations.

In an effort to organize the qualities needed by healthcare professionals, the Healthcare Leadership Alliance (HLA), which is comprised of various healthcare organizations, categorized the (now) 802 identified competencies into five core domains:

• ::  Communication and Relationship Management
• ::  Leadership
• ::  Professionalism
• ::  Knowledge of the Healthcare Environment
• ::  Business Skills and Knowledge

Cultural competence in health care describes the ability of systems to provide care to patients with diverse values, beliefs, and behaviors, including tailoring delivery to meet patients' social, cultural, and linguistic needs.

Sustainable Competitive advantages : ustainable advantage helps a firm to set out best in a segment group. It is unique in everything that is valued by customers and buyers. Hospital industry is a main source for health and care. They are the house for the sick people who are homeless, poor and insane. It basically entails as a security for the nation and that security and safety is all about health which is necessary for the survival. Just because of advancement in science and technology the hospitals are able to provide people with good and best medical facilities. There are professional health care workers who save our precious life. Hospitals provide inpatient health services, and many of these services can be provided only with specialized facilities and equipment. Services include medical care, diagnostic services, nursing care and many more. They also provide good treatment for sugar patients, cancer and mentally ill people. Hospitals provide inpatient health services, and many of these services can be provided only with specialized facilities and equipment. Hospital is a need of around billion of people across the world. Due to the latest equipments and advancement in technology the living standard has improved.