These figures are expected to increase dramatically in the coming years. (Saturdays. Com, 201 3) AAA. Driving Forces The Patient Protection and Affordable Care Act (CA), commonly referred to as Beamer, represents the greatest regulatory overhaul to the US latherer system since the introduction of Medicare almost 50 years ago. The CA sets federally mandated standards for insurance companies in regard to rates and coverage. It also established mandatory penalties for any uninsured or undesired US citizen.
The act has caused a great deal of speculative panic in the healthcare community at large as it opened the door for greater federal scrutiny of the patient care and financial practices of healthcare institutions. AAA. Provision The best way to offset any detriment that may come to the institution in light of the CA is to promote a culture of caring for our patients while providing n acceptable level of transparency and compliance to federal regulators and eliminating wasteful practices in order to combat any financial hardship that may occur due to the insurance overhaul.
First, let’s take a look at patient care. The care and wellbeing of our patients should now and forever be of the most paramount importance to this and any other healthcare institution. No matter what regulatory and/or economic strain is put on the industry by the CA, the level and quality of patient care remaining at the utmost level is absolutely critical to the future success Of the healthcare industry as a whole. In the face for sweeping federal regulations enacted by the CA the healthcare industry must adapt to an increased level of scrutiny in its everyday care and business practices.
All personnel must be educated on the changes in regulation and comfortable with adhering to them. The CA has enacted a series of brutal penalties for willful noncompliance and it is the responsibility of the institutions staff and administrators to ensure that everything possible is done to prevent these penalties from being levied. Finally, increased scrutiny and increased bureaucracy often times leads to increased costs. In order to maintain profitability, these costs must be offset.
In order to accomplish this, the institution needs to look long and hard at ways to eliminate wasteful costs and tighten up its operations budget. There are a number of ways this can be accomplished such as cutting overtime for non-essential personnel and reducing utility bills through the use of high efficiency lighting. Any way that does not decrease the level of alertness or care in the facility. AAA. Differentiating Competitive Characteristics Two differentiating competitive characteristics of the healthcare industry are quality of care and specificity of treatment.
A healthcare facility can differentiate itself from the competition by providing the highest possible level of patient care through streamlined appointment processing, fully staffed emergency services, employment of top notch practitioners, providing a clean and sterile environment, etc. By striving for perfection in quality of care, the company can differentiate itself from its competitors and set the standard in the industry.
The company can also differentiate itself from its competitors by offering the highest quality of treatment in specific areas by employing the best doctors from specific fields. For example, by recruiting the top brain surgeons in the country, the company can gain esteem in the field and an advantage over the competition. There is success and prestige in the healthcare industry that can be had by being able to provide top level procedurally specific care in high need areas such as cancer treatment, pain management and orthopedic surgery. AAA.
Strategic Group Map A strategic group map is a valuable tool for comparing market positions for companies or putting them into specific groups while helping align specific differentiating characteristics. The map can help show where the company is n regard to the success of its differentiating characteristics based on both its own goals/results as well as those of its competition. There are levels on the map that range from weak to strong based on established market expectations as well as the expectations and established standards of the company.
Below is an example of a strategic group map plotted out based on the differentiating characteristics discussed in the previous section: The company is represented by the blue ball in the upper right hand corner of the map as providing exceptional quality of care as well as very specific retirement programs. The other Blue balls represent the company’s competition. The company’s goal is to situate itself in a position where it is far and away the best provider of exceptional quality specialized healthcare. 4. Success Factors Two key factors that will enhance the company’s success are improved training and proper staffing.
The healthcare industry is an ever evolving entity. New procedures and technologies intended to improve treatment effectiveness are being developed every day. It is imperative to the success of the company that our practitioners are fully trained on these medical advances as they come to light. Monthly training sessions and seminars need to be scheduled and attendance must be mandatory. By having the best trained staff, the company gains a strategic advantage over its competitors by being able to provide the most up to date care to its patients. Proper Staffing is also a key to the company’s future success.
Care must be taken to ensure that enough staff is on duty to handle the patient load while providing a top notch standard of care and treatment without a back log but at the same time not so much staff as it becomes a detriment on the profitability of the company. By properly analyzing scheduling and emergency patient trends as well as establishing a suitable on call system to help handle emergencies, issues that can arise from overstuffing/ understanding can be reasonably mitigated and overhead can be properly managed from a salary standpoint.
AS. Competitive Forces The impact of the 5 competitive forces from Porter’s Five Forces Model in regard to the healthcare industry, are as follows: Supplier Power The more suppliers of a certain product or service, the more competitive the market becomes and the more powerful the consumer of those products comes in regard to setting a price. Exclusivity of a product means that, in general, the price of that product will be higher. This is the reason that in the healthcare industry, specialty practice equals increased revenue.
By providing a specific service devoid of competition, a company can practice medicine without fear Of competition driving the price down. Buyer power The impact of a consumer to set a product or service price based on supply and demand. Low consumer demand can drive down the price of services as can a large group of consumers colluding to keep the prices down. In the latherer industry there is limited buyer power because it is almost impossible to predict what, where, and when services will be needed. Competitive Rivalry By gauging the number of competitors in the market, the power of an individual company can be effectively determined.
More competition equals less individual market power. In the healthcare industry, competitive rivalry usually exists more within the family doctor, general practitioner, pharmaceutical sales sectors and not so much within specialized care. Threat of Substitution The threat of a product or service being replaced by a competitor with a less expensive solution. In the healthcare field, generic drugs, lower quality surgical equipment, and redesigned procedures are all substitution threats that can affect the company’s bottom line.
Threat of New Entry New competition will always delude a marketplace by giving customers options that they previously did not have. Anew healthcare entity has the potential to draw away patients and drive down profits by offering comparable services at lower prices. That being said, there are federal regulations that exist to prevent monopolies and price fixing within the healthcare industry, so this threat is ever present and should be accounted or in any successful business plan. Bal.
Vision Statement The vision for the company is for it to become the leader in high quality, cutting edge, cost effective healthcare services. 82. Mission Statement TO achieve a reputation of excellence in the healthcare industry. TO provide the latest, highest quality treatments and procedures to the public. 83. Distinctive Competency The distinctive competency that will distinguish the company from others in the industry will be its top notch specialized care. The company will strive to be the most respected entity in specific secondary medical treatments not just in the local area, but in the world.
The ability to provide superior treatment and care for patients battling complicated ailments such as cancer, heart disease, and neurological disorders will differentiate the company from others in the area. By investing in both top of the line equipment, recruiting the best specialists available to care for patients, and providing training on the latest techniques and medical breakthroughs to all of its employees, the quality of care created will soon weigh favorably on the company’s repute and help it to differentiate itself from its competition.
BE. Market Opportunity The company can capitalize on market opportunity by ensuring that the company retains the best healthcare workers and utilizes the most mode devices and techniques for the treatment of disease in a specialized field as cancer. By achieving renown for the treatment and care of cancer pat the company can make a name for itself that will make it the top destine for patients seeking treatment.
By employing and retaining doctors who understand the importance of treating the patient and not just the disease and are well versed and proficient in the latest medical, pharmacological genealogical treatment methods, the company can achieve status at the to” destination for treatment. One current emerging and much needed market opportunity in the field medicine is the ever growing need for geriatric practitioners to help in the diagnosis and care of the ever growing “baby boomers population.
Than constant advancements in healthcare, this demographic is expected to significantly outlive prior generations and will present an entirely new SE medical challenges for healthcare facilities as they begin to Outlive their faculties. The company can seize this market opportunity by offering visualized health procedures that focus on the emerging needs of these patients such as muscle and joint therapy, pain management, dietary guidance, etc. 85.
External Threats The main external threat to the overall long term success of the company: the treat of new competition in the marketplace. If the company shifts it focus on specialized cancer care and then another company in the area the same, it has a deluding effect on the customer base. Given the high Of care, especially top tier specialized care, most healthcare companies operate under very tight margins in order to provide their services at an affordable rate.
Any unforeseen loss of customers due to new competition could be devastating in the long term. A new company introduces competition in the marketplace, and competition drives down prices but costs. A new company might feel the need to offer comparable services reduced rate, sacrificing short term profits for long term market share. Ends up hurting both companies in the long run. Baa.