Porter's Five Forces Model

Stakeholders that have influenced this strategic effort consist of Oregonian patients or consumers of all socio-economic levels and demographics, hospital and health system employees of all capacities, payers including state and federal, and the communities in which they serve. The comprehensive strategic plan that OAHHS has created, encompasses strategies that create work across all four organizational levels. At the corporate level, OAHHS would like to see hospitals and health systems determine how to expand health care into underserved regions. At the divisional level, there is a promotion of community planning and partnerships to determine the adequate equation of care teams. While the organizational level strategy includes developing …show more content…
The horizontal threats that are of concern to OAHHS are: substitute products or services, establish rivals, and new entrants. If consumers are unsatisfied with the care that they are receiving, they may choose to not use hospitals and health centers. Frequenting smaller, or single provider locations, or pursuing medical tourism, taking money out of the system, reducing the ability for hospitals to remain members of the association. With other hospital associations that share borders with the state of Oregon, it is possible that hospitals and health systems in neighboring states may be functioning at a higher level, offering services that Oregon may not have. This may tempt Oregonians to cross those state lines to access services that are more favorable. Because of health care reform, many hospitals and health systems are struggling with ascertaining the best methods in which to lower costs while increasing quality of care. This is causing restructuring within networks, allowing for the possibility of new entrants into the market, taking advantage of those that are currently …show more content…
The equivalent of a supplier in this scenario would be insurance companies or payers. The fewer payers willing to offer coverage within the networks established by hospitals and health systems, will limit the number of patients the facilities can treat. The outcome would be an increase in prices, a reduction of profitability, which is not the goal. Similar to the concern of new entrants, if customers are choosing to use alternate types of care providers, it continues to be easy for more competitors to open businesses, rather than customers becoming reliant upon the information disseminated by hospitals and health systems. Directional strategies are seen as the glue of an organization, as they are often the statements that are referred upon for strategy building and revision. Nonprofit organizations, such as OAHHS, live by their mission, vision, values, and strategic goals, their directional strategies. According to Ginter, Duncan and Swayne (2013), directional strategies are generally seen as guiding principles that the managers and employees will not compromise while in the pursuit of other