Strategy And The Strategic Management Process At Hca

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Strategy and the Strategic Management Process at HCA, Inc. Nashville-based Hospital Corporation of America (HCA) is the nation 's leading provider of healthcare services, a company comprised of locally managed facilities that include 165 hospitals and 115 freestanding surgery centers in 20 states and in London, employing approximately 225,000 people (“HCA, Inc.,” 2015). Four to five percent of all inpatient care delivered in the country today is provided by HCA facilities (“HCA Hospital Corporation of America,” 2015). The health care industry consists of “more than 830,000 establishments with combined annual revenue of about $2.2 trillion” (“Health Care Sector,” 2015). It is a very fragmented industry with the top 50 institutions producing 15% of revenue. It is a lucrative business if costs are contained, but operating margins are typically low, between 2-4% (“Health Care Sector,” 2015). There is substantial change in the industry in how payments are made per the Affordable Care Act (ACA), changing from a volume based reimbursement to quality based incentives (Dubois, 2013; Kutscher & Evans, 2013, “Health Care Sector,” 2015). HCA has a different strategy than two rival companies, Community Health Systems (CHS) and LifePoint. HCA’s strategy has been to focus on acquisition of hospitals in larger, more densely populated urban areas, whereas the other two focus on rural areas. HCA’s facilities are divided into 15 different regions that help manage the regional differences of

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