Final Project_Module Seven

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Running head: MILESTONE SEVEN_FINAL PROJECT 1 Milestone Seven: Final Project Tina Brown Southern New Hampshire University HCM 415: Healthcare Strategic Management and Policy Professor Rachel Blackwood, MBA, PMP August 13, 2023

MILESTONE SEVEN_FINAL PROJECT 2 Table of Contents I. Overview II. Situational Analysis A. Analysis: Approach B. Analysis: Issue C. Analysis: Concerns D. Analysis: Role E. Analysis: Stakeholders F. Analysis: Policies G. Analysis: Mission and Vision H. Analysis: SWOT I. Analysis: Environmental Factors J. Analysis: Current Policies K. Analysis: Changes L. Analysis: Strategic Planning M. Analysis: Influence III. Recommendations A. Recommendations: Manager B. Recommendations: Driving C. Recommendations: Better Align

MILESTONE SEVEN_FINAL PROJECT 3 Overview Huntington Hospital (HH) is a 625- bed non-profit hospital that is in Pasadena, California and has outstanding accounts receivable (AR) days of 64 days, which is a key performance indicator for billing and collections (Drabkin & Soule, 2015). According to Drabkin and Soule (2015), Jim Noble, the executive VP-COO/CFO, was not happy with the current AR days for their organization and had a goal to lower the AR days to somewhere in the 50’s, because he recognized that based on HH’s payer mix, where their organization was located, and to achieve the mission and vision of the organization that a different strategic approach had to be taken to achieve the AR goal he wanted (Drabkin & Soule, 2015). A major component of HH’s mission and vision is to provide top quality, patient focused care and services to all their patients through internal and external collaboration with up-to-date technology and honor and respect to all individuals involved in their care (Huntington Hospital, 2023). To accomplish this change, Noble hired Kim Markey as the executive director of revenue cycle for HH’s Business Services Office (Drabkin & Soule, 2015). Noble wanted a manager who was a strategic thinker and not a manager who would come in and continue to focus on doing business the same way. After carefully evaluating the Business Service Office, Markey was able to conclude that the reason HH was experiencing such a high outstanding AR days was a result of a lack of formal written internal policies and procedures, inefficiencies in the processes that were currently in place within the collections department, no formal employee training, and no process in place for employees to suggest methods for improvements. (Drabkin & Soule, 2015). As a previous billing and revenue cycle manager for over 15 years, it is important for Markey to create a specific strategic plan that looks first at the mission and vision of the organization and then the key performance indicators that are important to the overall financial success of the

MILESTONE SEVEN_FINAL PROJECT 4 organization. Moreover, Markey will also have to keep in mind any external factors that may potentially affect the strategic planning and implementation of her plan. Analysis: Approach Based on Marley’s extensive background, Noble knew that Markey was a strategic manager and thinker who would take a forward-thinking approach to things such as asking the right questions, evaluating the current systems involved and the relationships to internal processes, look at alternative approaches to solutions, evaluate internal policies and procedures, current and potential technology available, legislative, and political issues, competitive issues, and internal cultural atmosphere, etc. (Ginter et al., 2018). Part of the mission, vision, and values of HH include connecting employees, up to date technology, honor, trust, working together, oversight, and excellence (Huntington Hospital, 2023). Markey’s strategic approach and planning unknowingly focused on re-aligning the Business Service Office with the mission, vision, and values of HH. Because of Markey’s knowledge and background, the organization’s strategic approach was one that focused on re-engineering or rethinking the way HH was currently operating with the policies and procedures that were in place (Ginter et al., 2018). However, the strategic approach was also flexible enough for an emergent approach that allowed for any external changes that would affect the planning process, goals, or mission and vision or the organization (Ginter et al., 2018). Markey’s initial approach to help tie HH’s mission and vision to strategic planning process was to implement simple process changes such as an employee suggestion box, eliminating the early clock in rule, and she brought in outside consultants to provide additional guidance and training to the staff for reducing the AR days prior to the implementation of the new EHR system (Drabkin & Soule, 2015). These simple initial changes were part of the re-engineering process of tearing down the walls between the

MILESTONE SEVEN_FINAL PROJECT 5 managers and employees, getting rid of the old culture and processes, and the start of implementing new processes and procedures. Analysis: Issue According to the case study, the main issue in question is that HH has a key billing indicator of an AR days of 64, which is high considering the size of their organization, the payer mix that the organization has in their patient accounts receivables, and the location of the facility (Drabkin & Soule, 2015). One of the most successful key performance billing indicators for a hospital or a healthcare provider is to have a low number of days in outstanding AR, this number will vary depending on the organization payer mix, location, and size of the organization. However, according to Geisler (2021) most organizations strive to have an outstanding AR days between 30-70 days and anything over 50 days would indicate internal issues with the billing and collection process within the organization. Analysis: Concerns The overall strategic planning concerns for HH regarding this issue are the lack of effective policies and procedures and aligning the mission and vision of the organization with the key stakeholders (Ginter et al., 2018). Employees had expressed to Markey that they didn’t understand the expectations in their role due to inefficiencies in policies and procedures or inconsistencies in the messages between management (Drabkin & Soule, 2015). To address the concern regarding aligning the mission and vision Markey knew that she needed to break down any barriers between the managers and re-establish trust so that effective collaboration toward meeting the goals of the organization could take place going forward, including implementing new policies and procedures. According to Jill Geisler (2021), a strategic and forward-thinking manager like Markey must be able to take into consideration all these concerns such as employee

MILESTONE SEVEN_FINAL PROJECT 6 surveys, work culture and environment surveys, training, policies, and procedures development, and an overall understanding that all employees can add value to the organization. Analysis: Role The healthcare manager is an essential person in the strategic planning process, as this person helps with the overall creation, implementation, and ongoing management of the process. The healthcare manager at HH, Kim Markey, must first work with the executive leadership team to gain an understanding of the organization’s mission and vision to ensure that all strategic planning changes, etc., are in alignment with the mission and vision of the organization (Ginter et al., 2018). In addition, the healthcare manager at HH must be aware of any current external and internal issues that are affecting the organization’s outstanding AR days, as well as any other known issues that should be considered in the strategic planning process. Markey will also need to have alternative strategies ready for issues that may be known or unknown such as when HH fully implements the new EHR system or if a change is made in any federal or state reimbursement guidelines (Ginter et al., 2018). Moreover, the healthcare manager will be responsible for creating the action plan for the strategic plan. In this specific situation, Markey will be responsible for defining specific steps, assigning specific persons to complete each step, assigning a specific due date, and having regular meetings to verify progress, discuss obstacles, and make necessary adjustments to the plan. Analysis: Stakeholders Some of the key stakeholders involved in this issue are the Business Service Office employees and their respective managers, the healthcare manager, Kim Markey, the IT/HIM department, and the major insurance payers. The Business Services Office employees play a key role in the strategic planning process by providing valuable information regarding what they do

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