Siemens Business Case: Joint Venture

Successful organizations develop both, short and long term goals focus on operational and financial strategies. This process needs constant evaluation in order to identify opportunities for growth. The goal of every healthcare facility should be to become a leader in the industry, attract high-quality staff and health experts, and establish cutting-edge services for the community. By reviewing current operational realities while working a market research enables the organization to develop strategy solutions to address environmental concerns.

The mission of UnitedHealthcare Group is to “help people live healthier lives” with access, quality and affordability. They are committed to continual improvement and the delivery of quality care by investing approximately $3 billion in business process improvements, research development, and technology within the past five years. In addition to reinvesting the revenues in innovative technologies, research and other improvements to better serves its consumers, UnitedHealthcare Group is also committed to social responsibility through employee involvement,

The Palms Hospital is considering an expansion project that would utilize land previously purchased. By expanding into ambulatory surgical services, the hospital has the opportunity to increase revenues and capture market share in this area. Investigation in the NPV of the project and a scenario analysis reveal that the project would be profitable.

Strategic Planning is an essential first step in the development of a result-base accountability system,” (Schilder, 2013, p. 1). In strategic planning an organization must know their goals, missions, and how to reach them. Health care facilities are in huge demand for the elderly and for people who lives in low-income communities. A person who receives good quality health care services can prevent the spread of contagious diseases. This paper will describe the need of the community, population it is serving, and a brief description of the facility.

Centura Health is their region’s largest hospital system that is faith based and not-for-profit, located in Colorado and Western Kansas. This system includes 15 hospitals plus more affiliated hospitals, over 100 physician practices, senior living communities, Flight for Life, Centura Health at Home, and laboratory services (Centura, 2014). The power, size, and large scale of this system causes it to be a god system to analyze during states of change. Currently, there are a lot of changes that are occurring throughout the healthcare system due to the Patient Protection and Affordable Care act that was signed into law by President Barak Obama. This act has called for a change to increase accessibility to healthcare, reduce the costs that are associated with healthcare, reduce the amount of duplication, and reduce the amount or errors (Herrington, 2010). Centura has created a strategic plan to address these changes and many other changes. Centura Health’s strategic plan is known as the Centura Health 2020 strategic plan. This strategic plan outlines long and short term goals. These goals, as well as previous goal, will be analyzed to understand how they plan on creating the need for change to ensure the successful implementation, as well as, understanding their historical approach to strategic change. Many organizations will look at past successes and failures to understand what went right and wrong to recreate, or avoid, those successes

Porter’s five forces analysis provides a methodology to evaluate the external markets. Its consideration of substitutes, threats and power of buyer and supplier assists with the development of an integration strategy. A thorough analysis can isolate attractive opportunities in support of building a profitable business model. These strategies can leverage vertical and/or horizontal integration of new business entities. These entities are designed to help with growing market share, increase efficiencies and/or reduce costs. During the 1990’s many hospitals pursued a combination of both vertical and horizontal integration. The goal was to create an integrated delivery network (IDN) designed to improve their economic performance.

I will compare the current health care system with the new Patient Protection and Affordable Care Act (ACA) that became law on March 23, 2010.   The current system, which is being phased out between 2011 and 2018 is increasingly inaccessible to many poor and lower-middle-class people. About 47 million Americans lack health insurance, an increase of more than two million people from 2005 (Rover, 2011) the increasingly complex warfare between insurers and hospitals over who pays the bills is gobbling up a great deal of money and the end result is that the United States pays roughly twice as much per

develop a plan. They may need to reach out to larger hospitals to see what they have done and how it has worked. Implementation may be slightly different, but the end result should be comparable. In that same sense, a very large city hospital may be able to create a large

Centura Health had the opportunity for a workshop presentation by Dominique Morgan-Solomon, a population health expert. Dominique Morgan-Solomon, MPH, works as a consultant in health care delivery, device management, and for health care organizations on population health strategies and program implementation. Prior to consulting, Dominique was the Chief Operating Officer of Steward Medical Group and Vice President of Population Health for Steward Health Care from February 2012 until October of 2015. She was responsible for the strategic planning and execution of its quality performance, clinical integration care management, and population health programs. Last year she was awarded “Young Healthcare Executive of the Year” for her leadership in this promising field by the National Association of Health Service Executives (NAHSE). She has exceeded in her career after receiving a Bachelor of Arts from Cornell University in Biology and Political Science and a Master of Public Health in Health Policy from the University of Michigan.

Recently, many healthcare organizations are merging and creating partnerships with other health organizations with an aim of ensuring long-term financial feasibility. According to records and statistics, the number of hospitals that merged between 2009 and 2012 doubled significantly. According to an article that was published by the New York Times, the number of hospitals and health facilities merging is expected to increase in the next few years. Mergers have brought about manifold changes in the health sector in terms of connecting data from frantic electronic health records and in making the healthcare systems interoperable (Informatics in healthcare, 1992).

Over the years more healthcare organizations, like DaVita, Inc. and MedStar Health have increasingly expanded to become integrated healthcare systems through mergers, acquisitions, or joint ventures with efficiency and good performance by achieving a strategy of focusing on being more accessible with population health and providing high quality care at an affordable reduced, cost with a goal of keeping patients healthy with good medical outcomes.

An organization such as the Oregon Association of Hospitals and Health Systems (OAHHS) is established to help Oregon hospitals understand how to best serve their unique communities, while continuing to reach state-wide goals. OAHHS currently has a primary goal of helping Oregon hospitals to reach the Triple Aim determined by healthcare reform: improving the quality of patient care and population health, while reducing the per capita costs. This type of organization completes ongoing analyses of their business, on a regular basis to ensure that they are communicating the most up-to-date information to the hospitals of their state. A SWOT analysis is one type on analysis that can help them to determine internal and external factors, including environmental and marketing challenges that may need addressed.

Today’s market demands organizations to have a strategic plan. The purpose of the strategic plan describes where the organization wants their organization to go. A strategic plan is a document used to communicate goals, and the actions needed to achieve those goals. In order to remain competitive every organization needs to innovate to stay ahead of the competition. They need to develop new products and services with increasing frequency. The design of these new products and services must meet, or exceed, customer expectations and at the same time, they must generate an acceptable financial return for the organization. However, any business that does not realize the importance of developing new products will not last very long as a consequence

This paper will focus on the health-tech business and takes a look at Philips’ strategic plan, capacity plan, and how it implements these into its portfolio management process. I will be going over the program management plan and how projects are managed as well as identifying any conflicts in cost, schedule, or quality and how to resolve them. Additionally, there will be a change management plan that focuses on managing organizational and cultural changes. I will also create a resource utilization plan to analyze and plan resources.

A SWOT-Analysis is a useful strategic tool for PMH to utilize when determining whether a rural satellite clinic will be a profitable market venture. A SWOT-Analysis is a diagram that considers organizations’ internal competencies (strengths and weaknesses) and external developments (opportunities and threats) affecting the institution (Van Wijngaarden, Scholten, & Van Wijk, 2012). Therefore a SWOT analysis for PMH’s satellite clinic project includes the following strengths: PMH current rural health clinic is successful and provides patients with increased access to outpatient health care services even after business hours and on weekends; offers a patient portal for customers to electronically access their health information; and gives patients access to rotating specialty care services (i.e. podiatry, nephrology, and surgery) (PMH, n.d.). Also, PMH has built strong relationships throughout Pocahontas County that increases public perceptions for their institution and acceptability for the developing of new business ventures (PMH, n.d.). Finally, PMH has an in-house billing center that assists patients with their health care payments and offers a Payment Assistance Program to those patients who have difficulty paying their bills (PMH, n.d.).