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Week 3 Summative Assessment: Market & SWOT Analysis for Phoenix Hospitals

Week 3 Summative Assessment: Market & SWOT Analysis for Phoenix Hospitals

 

This week you will continue to work on the Strategic Plan Template. It is important to review the feedback from your faculty each week and incorporate their feedback into your template.

Complete the Part 2 Market & SWOT Analysis for Phoenix Hospital section of the Strategic Plan Template.

Cite at least 1 peer-reviewed, scholarly, or similar reference to support your assignment.

HCS/498 v3

HCS/498 Strategic Planning Capstone

HCS/498 v3

Page 2 of 2

HCS/498 Strategic Planning Capstone

5-year Strategic Plan Scenario

Background

Phoenix Hospital is a 180-bed acute care hospital that is qualified as a not-for-profit facility. The hospital was originally owned by the county and transferred status to an independent facility three years ago. The hospital receives no external funding from governmental agencies for operations. The hospital is accredited by The Joint Commission and received re-accreditation during its triannual survey last year. The hospital has an aggressive quality management program and a low volume of medical malpractice claims. The hospital is located in Bedford, which is a city of 50,000 with 80,000 in the regional market. The hospital provides a general range of acute care services including medical/surgical, rehab, and emergency care. The president of the hospital has asked you to lead the development of a 5-year strategic plan for the hospital. You will use data provided in this scenario to make your decisions and recommendations.

In addition to information provided in this scenario, you are expected to include information from outside sources that are relevant to real-life events and projections for today’s health care market. This would include any actual market projections based on changes to health care reform and financing.

Market Forces that Affect the Hospital

Volumes

Patients

The continued growth of chronic disease will require changes to the care management model.

Percent of Population by Age

Age Group

Five years ago

Five years from now

Under 18

24

18

18 to 44

46

32

45 to 65

24

30

Over 65

4

20

More than 53% of residents have at least some college education, with just more than 29% having an associates, bachelor’s, or graduate degree. More than 90 percent of residents have at least a high school diploma.

The average unemployment rate in the county is currently 9.9%.

Market share distribution percentage with major competitor.

Hospitals

5 years ago

Last year

Phoenix Hospital

48

35

Competitor

30

43

Out of country hospitals

22

22

Patient Origin by Zip Code for Phoenix Hospital

96101 is Phoenix Hospital zip code

94963 is major competitor hospital zip code

Payment

There is a continued focus on pay for performance and increased wellness programs. Health care reform has created more covered lives; 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 this coming 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

Current Payer Mix

Projected Payer Mix 5-years

As part of your review of this data, consider that a portion of the population will become Medicare eligible, the addition of manufacturing positions that include benefits will increase commercial insurance coverage, and changes from the health care reform will increase the number of patients in the market with insurance coverage.

Employers

There is expected growth in large employers with the addition of an automotive factory in the northwest sector of the county.

Staffing

Staffing has remained stable for the past year. The only difficulty is that there are not sufficient nurses cross-trained to work in the intensive care unit, so expensive agency nurses have been used periodically to fill this gap in the ICU.

Physicians

The continued shortage of medical staff, especially in orthopedics, oncology, and primary care, will require increased recruitment efforts.

Competitors

The other hospital in county, Hanover County Hospital, updated its facility and has drawn more market share.

Primary Competitors

Key Areas of Competition

New Programs and Facilities

Risk to Market Share

Hanover County Hospital

Facility upgrade

Quality Scores

Significant renovation of core hospital to update aesthetics

Added new wide-bore MRI machine last year

Reaching 95th percentile in five of six HCAPS categories

Drawing patients to newer facility

Accommodates heavier patients

Patient perception of higher quality and patient satisfaction

Medical Center in county south of Phoenix

Physician clinics

Financial stability

E-Visits with specialists

Low debt and high cash on hand

Drawing patients out of primary and specialty care at Phoenix Hospital

Ability to cash flow projects

Secondary Competitors

Key Areas of Competition

New Programs and Facilities

Risk to Market Share

Retail pharmacy instant clinic

Low acuity office visits

Pharmacy added instant clinic in north end of county 6 months ago

Loss of patients from primary care physician practices

Technology

The addition of e-visits by a large hospital system in an adjoining county has drawn more market share to their physician practices.

The hospital has one MRI unit that is seven years old and is beginning to experience more “downtime” and needs more frequent repairs. This downtime has caused some scheduling delays for patients, and medical staff are voicing their concern.

The hospital has implemented the first phase of an electronic medical records system, which includes patient records for medical units and lab and radiology reporting. Specialized components of the system for OB documentation and oncology documentation have not yet been purchased.

The emergency department provides EMS ambulance service to the county and has two ambulances. One ambulance is five years old and the second is eight years old with 187,000 miles on it.

The cardiology department has one cardiac catheterization lab in good working condition. Demand for Cath Lab time has increased, but there have been delays because of limited Cath Lab trained staff and only having one Cath Lab available.

The front lobby of the hospital is in disrepair with worn tile flooring and aged lobby furniture.

An employee gym was created several years ago but only contains one treadmill and a few weights. Staff have complained that there is not better gym equipment.

Regulatory Changes

Health care reform has increased the number of patients with some form of insurance payment. These patients are now seeking care in greater numbers from a primary care physician. Phoenix Hospital currently struggles with accommodating patient scheduling requests to establish care with a primary care physician.

Accreditation requirements for the coming year are changing to require CPOE (computerized physician order entry) in the medical record. The current electronic medical record system has not required CPOE, and staff regulations have accommodated verbal orders to nurses on a routine basis.

During the last Joint Commission survey, the hospital was cited for not having fire sprinkler heads in one patient care unit of the hospital. Installation cost is estimated at $50,000.

During the last Joint Commission survey, the hospital was cited for not demonstrating sufficient training of staff for emergency preparedness and disaster drills.

The State Department of Health has issued a new regulation that requires all hospital management personnel to have documented active shooter training once per year, beginning this coming year.

Hospital Financial Summary

Operating Revenues

This Year

Last Year

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

This Year

Last Year

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

This Year

Last Year

Income from operations

16,063,127

22,571,501

Volume changes last year versus this year

Last year

Admission ER visits Deliveries Surgeries 4458 20930 405 6365 This year

Admission ER visits Deliveries Surgeries 5147 26292 472 7284

Column2

[CATEGORY NAME] 52% [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] 96101 93921 92106 94963 0.42 0.12 0.16 0.2 Column2 96101 93921 92106 94963 0.42 0.12 0.16 0.2 US Age Distribution 2010 [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] [CATEGORY NAME] [VALUE] Medicaid Medicare Commercial Uninsured Other 0.35 0.3 0.24 0.09 0.02 Medicare Medicaid Commercial Uninsured Other 38 24 32 4 2

Copyright 2022 by University of Phoenix. All rights reserved.

Copyright 2022 by University of Phoenix. All rights reserved.

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HCS/498 v3

Strategic Plan Template

HCS/498 v3

Page 2 of 2

Strategic Plan Template

This course will feature a cumulative assignment starting in Week 1 and concluding in Week 5. You will complete this assignment each week using the Strategic Plan Template provided. This document will be used in conjunction with the Phoenix Hospital 5-Year Strategic Plan Scenario. It is important that you read the scenario in its entirety prior to completing the Week 1 assignment. Make sure to refer back the scenario each week as instructed for these cumulative assignments. You will record all responses to the appropriate assignments in this document. Your faculty member will also provide feedback directly through this document. This document will break down the basic steps used in strategic planning to make a strategic decision in health care. While this scenario is specifically geared toward a hospital setting, the knowledge and skills you will possess at the end of this course can be applied to any health care facility (e.g., physician’s office, long-term care, etc.).

Part 1: Mission and Vision for Phoenix Hospital

Section A

In this first assignment, you will create a mission and vision statement for Phoenix Hospital. It is important to read the Phoenix Hospital 5-Year Strategic Plan Scenario prior to completing this assignment.

Create a mission and vision statement for Phoenix Hospital. Remember that your mission and vision statements should be a strong representation of the following:

· Organization

· Organization’s goals

· Stakeholders that are impacted by the organization

· Values of the organization

Mission for Phoenix Hospital

Vision for Phoenix Hospital

Cite at least 1 peer-reviewed, scholarly, or similar reference to support your assignment.

Section B

Write 260 to 350 words on the importance of mission and vision statements to organizations in which you:

Describe the process an organization uses to develop their mission and vision statement.

Explain internal and external stakeholders involved in the process of developing the organization’s mission and vision statements.

i. Discuss the roles and responsibilities of the stakeholders.

Explain how the mission and vision is foundational to strategic planning in a health care organization.

Cite at least 1 peer-reviewed, scholarly, or similar reference to support your paper.

Part 2: Market & SWOT Analysis for Phoenix Hospital

Section A

Review the Phoenix Hospital 5-Year Strategic Plan Scenario.

Research current health care events that influence hospital or other health care facility performance. Consider using the article review from the Week 2 assignment, “Understanding Strategic Decision-Making in Health Care,” if applicable.

Complete the chart using a minimum of 700 words with the following information:

Identify 3 major market factors from the Phoenix Hospital scenario.

Analyze how the major market factors selected will affect performance of the hospital in the next 3 years.

· Consider real-life current events in health care and how those could affect hospital performance.

Major market factor

Analyze how the major market factor affects hospital performance.

1

2

3

Cite at least 1 peer-reviewed, scholarly, or similar reference to support your assignment.

Section B

Based on the review of the Phoenix Hospital 5-Year Strategic Plan Scenario, conduct a SWOT analysis to generate a list of perceived strengths, weaknesses, opportunities, and threats for the hospital.

Strengths and weaknesses are traits internal to the hospital (e.g., strong physician loyalty to the hospital, aging building, and availability of financial resources).

Opportunities and threats are external to the hospital (e.g., a mall facility available for lease or a competitor hospital opening two physician practices in your market).

Complete the SWOT analysis for the Phoenix Hospital 5-Year Strategic Plan Scenario. Include the following in your SWOT analysis:

· A list of perceived strengths, weaknesses, opportunities, and threats

· At least 3 items in the SWOT analysis must be related to technology, regulatory, and financials.

· You have been provided one section for each SWOT area. If you would like to add additional items to SWOT sections, please add additional line items to the table.

· An analysis of the information from the strategic decision-making scenario that supports the SWOT analysis items

Note: Think ahead in your assignments regarding how your items in the SWOT analysis will translate to objectives and strategies in Week 4. For example, a weakness like “Limited registered nurse staffing in several departments” might translate to an objective of “Increase RN staff by 15 nurses within first 6 months.” The strategy for this objective might be “Job fair at the state nursing convention will increase interest and awareness of opportunities at Phoenix Hospital.”

Table 1: SWOT Analysis

Perceived strength (internal)

Perceived weakness (internal)

[Insert Response]

[Insert Response]

Perceived opportunity (external)

Perceived threat (external)

[Insert Response]

[Insert Response]

Analysis of existing technology information from the Phoenix Hospital strategic decision-making scenario. Include the following in your analysis:

Analyze existing technology information.

Determine if the technology is considered a strength, weakness, opportunity, or threat for the organization.

Explain your selection.

[Give your response]

Analysis of existing financial information from the Phoenix Hospital strategic decision-making scenario. Include the following in your analysis:

Analyze existing financial information.

Determine if the financials are considered a strength, weakness, opportunity, or threat for the organization.

Explain your selection.

[Give your response]

Analysis of existing regulatory information from the Phoenix Hospital strategic decision-making scenario. Include the following in your analysis:

Analyze existing regulatory information.

Determine if the regulatory information is considered a strength, weakness, opportunity, or threat for the organization.

Explain your selection.

[Give your response]

Analysis of existing information from the Phoenix Hospital strategic decision-making scenario. Include the following in your analysis:

Select an additional market factor and complete your analysis.

Determine if the factor selected is considered a strength, weakness, opportunity, or threat for the organization.

Explain your selection.

[Give your response]

Cite at least 1 peer-reviewed, scholarly, or similar reference to support your assignment.

Part 3: Goals, Objectives & Final Decision for Phoenix Hospital

Section A

Based on your review of the Phoenix Hospital 5-Year Strategic Plan Scenario provided in Week 1 and your work in Weeks 1 through 3 on mission development, market and SWOT analysis, complete the table below listing 4 to 5 objectives and strategies for the facility. Explain why each strategy is important.

For our project we will define:

· Goals as broad primary outcomes desired; what we would like to accomplish

· Objectives as measurable; should contain a number

· Strategies as the approach taken to achieve the objectives; the “why” of our actions

An example is provided in the first row. Note that your strategic priorities should be areas where you believe the facility should focus in the first year of the strategic plan.

For this assignment, you can use a goal more than one time, but you need to create at least 4 to 5 measurable objectives and provide the strategy for each. Discuss why you believe each strategy is important:

1. Make Phoenix Hospital the preferred hospital in Hanover County by employees and consumers.

Make Phoenix Hospital known as the hospital with the most advanced use of technology in the region (including computer and diagnostic technology).

Make Phoenix Hospital known as the employer of choice in Hanover County.

Make this coming year the most profitable year ever.

Ensure Phoenix Hospital meets all accreditation requirements under the latest CMS regulations.

Goal

(Select from goals listed above. Goals can be used multiple times)

Objectives/measurable actions

(Measurable outcome desired)

Strategies

(The “why” of our actions)

Why this strategy is important

Example: Make our model X automobile a sales leader in the country by year X.

Obtain 60 percent of the sales market as compared with model Y as demonstrated in Consumer Reports annual report.

Persuade buyers that model X has the best visual appeal by marketing to the 30- to 40-year-old market with an upscale campaign.

Marketing specific to 30- to 40-year-old demographic increases the sales in age range that has had lower sales in the past last year.

1

2

3

4

5

Cite at least 1 peer-reviewed, scholarly, or similar reference to support your assignment.

Section B

In this section, you will review your work in the Strategic Design Template in order to decide or make recommendation(s) about the 5-year strategic plan for Phoenix Hospital. Prior to making your decision or recommendations, it is important to review your work in this template, compiled research, and faculty feedback.

Write a 260- to 350-word paper that details your strategic decision or recommendation for the Phoenix Hospital. Include the following in your paper:

· Identify the decision or recommendations you will make regarding Phoenix Hospital.

· Support your decision with the analysis made throughout this template.

· Identify how the decision or recommendations will support the strategic plan for Phoenix Hospital.

· Evaluate how financial and economic issues in health care will affect your strategic plan.

Cite at least 1 peer-reviewed, scholarly, or similar reference to support your assignment.

Copyright 2022 by University of Phoenix. All rights reserved.

Copyright 2022 by University of Phoenix. All rights reserved.

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