HCS 499 Capstone Strategic Planning Scenario
Background
Stevens District Hospital is a 162-bed acute care hospital that is qualified as a not for profit facility. The hospital was originally a county-owned facility and its status was transferred to an independent facility three years ago. The hospital receives no external funding from government agencies for operations. The hospital is accredited by The Joint Commission and received reaccreditation during their 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 Jefferson City, 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.
Current Performance Analysis
Mission and Vision
Our mission: To improve health by providing high-quality care, a comprehensive range of services, and exceptional service.
Our vision: Stevens District Hospital and its affiliates will be the health care provider of choice for physicians and patients. Our five year vision is to create a large, multispecialty physician practice system that would include at least six family practice physicians and specialists in cardiology, oncology, and women’s services. Currently, the hospital employs three family practice physicians, one obstetrician, one medical oncologist, and one non-invasive cardiologist.
Previous Strategic Plan Review
Goal Accomplishments
Increase market share by recruiting three family practice physicians. The hospital was able to recruit only one family practice physician to increase primary care market this past year. The limited number of state medical school graduates makes local recruitment difficult.
Improve quality HCAPS scores in all six criteria to a baseline of the 85th percentile.
The hospital improved HCAPS scores in four of six criteria. Lagging elements in HCAPS scores are inpatient patient satisfaction and primary care patient satisfaction.
Market Forces Affecting the Hospital
Volumes
Patients
The continued growth of chronic disease will require changes to the care management model.
Percent of Population by Age
Five Years Ago Five Years From Now
Under 18 24 18
18 to 44 46 32
45 to 65 26 30
Over 65 4 20
More than 53 percent of residents have at least some college education, with just over 29 percent having an associate, 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 9.9 percent:
Market share distribution percentage with a major competitor.
Five Years Ago Last Year
Stevens District Hospital 48 35
Competitor 30 43
Out of County Hospitals 22 22
Patient Origin by Zip Code
Increases in the percent of population with chronic disease and contributing factors will change significantly over the coming five years.
Payment
There will be continued focus on pay for performance and increased wellness programs. The Affordable Care Act is creating 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.
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 Affordable Care Act will increase the number of patients in the market with insurance coverage.
Employers
There is expected growth in large employers with the addition of the automotive factory in the northwest sector of the county.
Physicians
The continued shortage of medical staff, especially in orthopedics, oncology, and primary care, will require increased recruitment efforts.
Competitors
Hanover County Hospital, which is the other hospital in the county, has an updated facility that has drawn more market share to its facility.
Competitor Key Areas of Competition New Programs and Facilities Risk to Market Share
Primary Competitors
Hanover County Hospital Facility upgrade
Quality scores Significant renovation of core hospital to update aesthetics
Added new wide-bore MRI machine last year
Reaches the 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 Stevens Physician clinics
Financial stability E-visits with specialists
Low debt and high cash on hand Drawing patients out of primary and specialty care at Stevens
Ability to cash flow projects
Secondary Competitors
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 physicians’ practices
Technology
A competing hospital has added e-visits for physician practices, which is causing a shift of patients to the competitor hospital’s physician practices.
Regulatory Changes
Health care reform through the Affordable Care Act 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. Stevens District Hospital struggles with accommodating patient scheduling requests to establish care with a primary care physician.
Plan
Planning Components Explanation
Goal Objective Actions
Definition Organization goals that cover broad strategic issues, such as quality, finances, growth Broad action items that address organizational goals, such as increasing market share, increased use of technology, increased physician satisfaction Action item that meets an objective, such as implementing EMR, renovating physician lounge, increasing marketing for specific products
Examples – Improve HCAPS scores by 5%
– Improve operating margin by 3%
– Increase market share in 96103 zip code by 5%
– Improve emergency department patient satisfaction survey by 5%
– Grow urgent care visits by 10% – Implement urgent care center in north zip code
– Purchase tablets for physicians for EMR rounding
Measurement – % increase in operating margin
– % change in market share
– % change in ED satisfaction survey
– % change in urgent care visits – Number of patient visits at new urgent care center
– % increased use of EMR
Financial Summary
This year Last year
Operating Revenues
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
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
Income from operations 16,063,127 22,571,501
For Part 2 of the Goals for Stevens District Hospital assignment, you will use the same format you used in Week Three. In this assignment, you will identify 3 additional goals that support the mission and vision of the hospital. For each goal, you will write a analysis based on your review of the data provided in the Stevens District Hospital strategic planning scenario and your SWOT analysis.
Financial or Economic Goal
Identify a clear, actionable, and measurable financial or economic goal for the organization that clearly supports the mission and vision.
Analyze how this goal supports the mission and vision of the hospital.
Explain how you would measure progress toward the goal.
Discuss milestones necessary for progress.
Discuss the criteria you would use to measure that the goal was completed.
Legal or Regulatory Goal
Identify a clear, actionable, and measurable legal or regulatory goal for the organization that clearly supports the mission and vision.
Analyze how this goal supports the mission and vision of the hospital.
Explain how you would measure progress toward the goal.
Discuss milestones necessary for progress.
Discuss the criteria you would use to measure that the goal was completed.
Risk or Quality Management Goal
Identify a clear, actionable, and measurable risk or quality management goal for the organization that clearly supports the mission and vision.
Analyze how this goal supports the mission and vision of the hospital.
Explain how you would measure progress toward the goal.
Discuss milestones necessary for progress.
Discuss the criteria you would use to measure that the goal was completed.
References (format using correct APA guidelines)
Goals for Stevens District Hospital, Part 2
For Part 2 of the Goals for Stevens District Hospital assignment, you will use the same format you used in Week Three. In this assignment, you will identify 3 additional goals that support the mission and vision of the hospital. For each goal, you will write a 260- to 350-word analysis based on your review of the data provided in the Steven’s District Hospital strategic planning scenario and your SWOT analysis.
Financial or Economic Goal
Identify a clear, actionable, and measurable financial or economic goal for the organization that clearly supports the mission and vision.
Analyze how this goal supports the mission and vision of the hospital.
Explain how you would measure progress toward the goal.
- Discuss milestones necessary for progress.
- Discuss the criteria you would use to measure that the goal was completed.
Legal or Regulatory Goal
Identify a clear, actionable, and measurable legal or regulatory goal for the organization that clearly supports the mission and vision.
Analyze how this goal supports the mission and vision of the hospital.
Explain how you would measure progress toward the goal.
- Discuss milestones necessary for progress.
- Discuss the criteria you would use to measure that the goal was completed.
Risk or Quality Management Goal
Identify a clear, actionable, and measurable risk or quality management goal for the organization that clearly supports the mission and vision.
Analyze how this goal supports the mission and vision of the hospital.
Explain how you would measure progress toward the goal.
- Discuss milestones necessary for progress.
- Discuss the criteria you would use to measure that the goal was completed.
References (format using correct APA guidelines)
Cite 4 peer-reviewed, scholarly, or similar references to support your assignment.
Use correct APA in-text citation guidelines and include references above.
Click the Assignment Files tab to submit your assignment.
