Healthcare Value Chain Analysis

Improved Essays
Within the healthcare industry, the management team of the healthcare organization develops a strategic plan, so that the business will have longevity within the medical industry. In order to ensure the strategic plan is implemented and functioning, the management must develop an action plan to help reach the strategic plan of the healthcare organization. Any business can fail if they fail to develop an action plan to implement their strategic plan (Sisson, 2013). Consequently, an action plan must address the following questions: “who, what, where, and when” (“Agency for Healthcare Research and Quality”, 2014, para. 4). Additionally, to help further identify where an action plan needs to be created within the organization, management can utilize …show more content…
One such way of figuring out strategic goals that will create a strategy that will enhance the healthcare organizations ability to have a future would be creating a value chain. The value chain contains elements that will help to define the service delivery activities and support activities of the healthcare organization, so that management can see the potential value of each activity contributing to the enhancement of the company (Ginter et al., 2013, p. 132). Subsequently, this will lead to how much capital may be distributed to the activity of the value chain because it shows the activity as being a competitive advantage (Ginter et al., 2013, p. 132). Service delivery activities include preservice, point of service, and after service, which are placed above the support activities because they are the decisive value making undertakings, whereas organizational culture, structure, and strategic resources support the service delivery activities (Ginter et al., 2013, p. 132). Depending on the organizational structure of the healthcare organization will depend on what elements of the value chain that needs to be used to evaluate the value of the activities within the healthcare …show more content…
The reason behind creating a checkpoint plan is to make sure the healthcare organization is achieving its strategic goals within its strategic management plan. In fact, if one particular strategy is not working then substitute a new action plan. Furthermore, the team must create a plan that can be continually improved upon that allows incentives to be given to employees that adhere to the company’s goals and values (AHRQ, 2014). In doing so, this allows the healthcare organization to be able to change quickly to the internal and external environment responses of the action plans set in place for the strategic management

Related Documents

  • Improved Essays

    Stakeholders influence on SWOT elements Internal stakeholders include doctors, subordinate staff, managers, patients, and payers. Additionally, internal stakeholders can affect the operations of the hospitals directly. In contrast, the external stakeholders include government, suppliers, and community. First managers of the company are responsible for outsourcing funds from grants, donors, and the government to support delivery and affordability of its health care services. Furthermore, the managers are responsible for acquiring modern technology that assists doctors to carry their diagnosis and treatment.…

    • 965 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Hi Yellow Team Case Study

    • 211 Words
    • 1 Pages

    Hi Yellow team, you have identified an ongoing problem in the healthcare system. One of the barriers that could impact the implementation of your guideline could be a lack of coordination from the managers and directors. In any type of project, for its success, the support from the management has a great role. Implementation of any new project could pose a challenge to the managers as they are complex and involve many variables. The managers may need effective tools to focus their attention on the important issues and prioritize the problems (Pinto & Slevin, n.d.).…

    • 211 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    The completion of a SWOT analysis along with the development of a strategic plan and strategy map help to pave the way for the creation of an action plan for Grinnell Regional Medical Center (GRMC), through the formulation of a functional level strategy for the primary business functions. Management Tactics and Strategies The managerial tactics and strategies that will need to be implemented to meet the strategic goals to create a standardized, organizational-wide assessment tool to assess readmission risks in both the inpatient and outpatient settings to decrease readmission rates include focused cost leadership strategy. The focused cost leadership strategy is a combination of cost leadership and focused strategies which allows managers…

    • 375 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Spire Rehabilitation Hospital is a joint venture hospital with HealthSouth and West Tennessee Health Care. The hospital will be operated by HealthSouth and all employees will be under the HealthSouth umbrella and adopting the HealthSouth mission and vision statements. HealthSouth’s mission is to be the healthcare company of choice for patients, employees, physicians, and shareholders by providing high quality care in the communities we serve. HealthSouth’s vision is to make diversity a core part of the way we do business; using each other’s strengths to make Spire Rehabilitation Hospital an inclusive community with diversity at the core of its business practices. As a result, we become a stronger, more competitive company by fostering an inclusive culture where everyone is respected, appreciated, and recognizes the…

    • 423 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Bedside Rounding

    • 804 Words
    • 4 Pages

    The following will discuss the proposed plan to implement the new procedure in adherence to the organization’s mission, values, and vision. Consideration In healthcare, there are numerous factors to be considered…

    • 804 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    The adaptive strategies offer an organization the basic methods of achieving its vision by adapting to the environment. A healthcare organization may apply adaptive strategies by allowing its staff to grow their performance more than its complexity grows. In contrast, a market entry strategy indicates the technique of applying adaptive strategies through internal development and cooperation to deliver services to a target client base. A better strategy for a healthcare organization would be whether to source products, invest in or control a certain market. Competitive strategies, on the other hand, ascertain the strategic posture of an organization and identify the basis for competition.…

    • 1065 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    UHG Strategic Plan

    • 736 Words
    • 3 Pages

    According to Fortune magazine, UnitedHealth Group (UHG) provides healthcare to over 85 million consumers around the globe. In current healthcare systems, strategic leaders must evaluate current and futuristic situations and external environmental factors, competing for supplies and technologies, predicting future needs, understanding complex decisions, and promoting potential outcomes (Fernandes 2009). Dependent on cross-border capabilities to serve various nations and countries, UnitedHealth Group incorporates cost-effective strategic planning as more countries share the burden of chronic health issues (UHG 2015). The strategic leadership of UnitedHealth Group must consisitently explore and evaluate the external environment while developing…

    • 736 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    An organization should implement a purpose of forming the culture and strengthening the vision of their company. The goal of this program is to execute values and to guide behaviors through service, quality, integrity, teamwork, and innovation. Through these actions, the organization seeks to serve the patients with compassion, identify the best practices to provide excellent quality of care, be accountable for the results of patient care, work as a team to obtain outstanding performance and find new processes to achieve significant results to improve care. As these behaviors are executed, it will allow the leaders and employees to develop the proficiencies needed to be successful in their roles to the…

    • 859 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    ACA Case Study

    • 1516 Words
    • 7 Pages

    Healthcare providers are being urged to alter their healthcare practices to adapt to the changing landscape of healthcare delivery. The passing of the Affordable Care Act (ACA) has motivated healthcare administrators and providers to start to alter the method in which services are provided and have outlined new incentives to improve quality. The ACA also promotes innovation in improving quality and delivery of healthcare services while remaining cost effective. Healthcare organizations and providers will need to be innovative to meet the new requirements and incentives under the ACA with the aim of continuing to be successful.…

    • 1516 Words
    • 7 Pages
    Superior Essays
  • Great Essays

    Health Care Budget Managed care is a hard and complex organization. Managing an organization day today is a hard task but having individuals throughout the organization providing excellent service will help keep the organization at an all-time high with profitability and viability. It takes time for an organization to have a successful business and to have a better understanding of account budgeting. Most health care organizations use planning and budgeting functions to help a there organization succeed in identifying goals and objectives to make sure their organization stays on a task of improvements.…

    • 901 Words
    • 4 Pages
    Great Essays
  • Improved Essays

    This learned strategy will then create competitive advantage and bring long term value to the healthcare organization. As challenges increase today due to high population demand with new chronic disease I realized the importance on creating modernized tools to differentiate from others in order to stay in business. Create a culture of…

    • 423 Words
    • 2 Pages
    Improved Essays
  • Superior Essays

    Evolution Of Managed Care

    • 1147 Words
    • 5 Pages

    Values of the organization along with its mission and beliefs are also key to stakeholder and business success. Indicators such as quality access, innovation and prevention are all prime factors for a health care business to be successful (Wicks & Keevil, 2014). With this change in business sense, viewing health care as a basic right where medicine is not bought and sold like previous pay for service models, but rather a mutual understanding where stakeholders involved understand it is not just what is due to them, but also what their responsibilities are to other stakeholders as well (Wicks & Keevil,…

    • 1147 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    There are several business principles related to patient and system costs in health care that are needed to maintain safe, quality, patient-centered care that is fiscally sound. For this discussion, I will put myself in the shoes of a nurse manager, director of nursing, Chief Nursing Officer, or business owner and consider three of the principles from the Greg Fisher Power Point (2008). The principles I will examine are: 1) decide what makes you different; 2) manage employees; and 3) set goals. The reason why I selected these three business principles is that they appear to me to be a good place to start the groundwork for any business model, including the field of health care.…

    • 893 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    In today’s market, conducting an environmental scan should be an ongoing process that is incorporated into the organizational strategic plan. The scan will help the company form a vision while also identifying their strengths, weaknesses, opportunities, and threats (SWOT). SWOT analysis is necessary for the survival and growth of every health care organization. Being competitive is key to a successful organization; consumers want choices and in the era of the Internet, consumers know where to look to get the services that meet their individual needs.…

    • 854 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    What strategic controls (e.g., promise control, implementation control, strategic surveillance, and special alert control) might you use and why? In healthcare, designing a strategy is desired to help an organization track desired results. Strategic controls help organizations track strategies that are being implemented; in addition, to detecting problems or changes in strategies and making proper adjustments (Chron, 2016).…

    • 788 Words
    • 4 Pages
    Improved Essays