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Strategic Management Fundamentals for Hospital Planning

1890 words (8 pages) Essay in Management

08/02/20 Management Reference this

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As the Director of Operations Hospital Corporation of America. In the evaluation of the hospital’s strategic planning approach because of changes in recent Affordable Care Act, Health Information Technology for Economic and Clinical Health, Health Insurance Portability and Accountability Act (HIPAA), the Joint Commission. The Affordable Care Act made it possible for uninsured people to be responsible for their care. The provider and the patient would share some cost and the benefits.    

HCA second focus is on the timeless and delivery of access to patient health information. HCA planned for a new programming system identified as application programming interfaces, which allow the doctor new capabilities to support patient information and patient exchange. A patient portal will need to be adopted for doctors to work with the patient share of meaningful use this information will give patients access to their medical information and aids in secure messaging among the doctor and patient.

The affordability act also required the use of measures used for quality healthcare, community reporting and performance cost that reveals the hospital goals. The center of the law, focus on patient centered care, satisfaction, patient knowledge of the care, patient involvement and sharing in the decision making process amongst provider and patient.

Stakeholders impacted by the organization

According to SRA Research Group. (2015, Para. 1-5). A healthcare stakeholder is a person or organization involved directly or indirectly in patient care and can impact the hospital’s day to day operations. The Affordable Care act can impact the Hospital Corporation of America in several ways that will need to be addressed by the administrator such as:

  1. Preparing for a greater demand in patient services -The number of patients has increased because of the Affordable Care Act and patient are mandated to have healthcare insurance coverage. This event also will increase the doctor’s patient load and increase profits and decrease reimbursement care that the hospital may have incurred, it also can raise patient volume.
  2. Patients will do more price shopping for their healthcare-The Affordable Care Act has caused several mergers which a positive effect can have when it comes best practices and quality initiatives in a competitive market. Mergers and purchasing of hospitals can result in an increase in price, fewer choices for the patient’s, a rise in health insurance and copay and taxes to fund Medicare and Medicaid, so you will see patients shop for lower healthcare cost for treatment and medication. 
  3. Assess the effects the health care opposition will have on your products and services-many organizations will consider expanding their market share in a product line worldwide this event will allow the healthcare system to continue to promote and see patient thoughts about different products or will risk not being in a customer’s set when needing treatment. 
  4. Make a change to payment for successful outcomes, or no jobs –Hospital will be required to focus on treating patient’s successfully to get compensated, not just performing procedures. Healthcare organizations will assess how to deliver care as the system shifts from fees-for-service to pay-for-performance.If hospitals want to stay in the black they need to cut waste, pool resources for new payment models such as accountable care organizations, collaborate with a doctor’s, organize patients, and payers care, participate in medical doctors’ groups and primary care to retain patient’s healthcare, use big data to analyze current trends patient trends that determine new strategies and decisions that are made. Research from doctors, nurses, and hospital administrators helps the hospital understand the problems and issues that can result in better patient outcomes. 

Distinguish internal from external

External stakeholders of Hospital Corporation of America is outside the influences of the hospital, and the stakeholders that lacks control in how the outside environment components will shape up. The mission should contain factors that directly the hospital’s operations. These stakeholders include suppliers, patients, competitors, government agencies.

  1. Competitors- Policies of the hospital are influenced by the competition. Marketing corporations are always looking for ways to stay above the opponents. Competitions between competitors having increased. The positive side to this is that patients will always have a choice, and the quality of the products goes high. 
  2. Patients-The main objective of the hospital is to satisfy the patient. Patients pay a fee for the hospital products and services and this event is how the organization makes it money. Supervisors need to listen to their patient’s performance matrix because of the client’s purchase, the hospital can survive.
  3. Suppliers-supplies provide products and services. A good rapport amongst the hospital and the suppliers will allow for good quality products and services.
  4. Government agencies- Stakeholders can control, regulate and impact the hospital’s policies and practices and are the key stakeholders of the organization.  

Internal stakeholders focus on services or situations with the organization. Internal stakeholders include the CEO of the hospital, the broad of directors, hospital workers and culture.

  1. Owners-Stakeholders who started, financed, or brought shares in the hospital and have property rights and can change the hospital polices any time.  
  2. Board of Directors- is the leaders of the organization and elected by the stockholders, they are responsible for the supervision of other managers.   
  3. Employees-Hospital, personnel is the most important part of the hospital and does the job of the management. Employees who are in the union are also an important part of the organization. Great management can have a positive effect on the hospital policies.
  4. Culture-Shared behavior of hospital personnel and the values, visions, principles, habits which are attached to an individual’s action. The hospital culture plays a key role in the success of how well the hospital will perform and the shaping the behavior of management. (I Edu Note, 2017. Para. 10-18)

3 Business units or stakeholder

Press book. (N. D). Suggested that there are three business groups or stakeholder groups that should be subjected to further evaluation are:

Policymakers are Politian’s that set the agenda for which healthcare is provided and operated in the United States by collecting information from the patients, providers, and payors to create metrics to report their health and economic policies. Providers, and payors function and are controlled by these policies that are intended to capitalize on the health of the people in the United States economic and few resources, From a financial view point the payor and provider develops a consumer/vendor relationship allowing patients to have a choice about their insurance provider, so payor will develop a vendor/consumer relationship with the patient benefactors.

Providers deliver care with in the guideline of the policies. Providers offer healthcare services to patients and keep personal health data about the patient. Care is coordinated between other providers. This event will allow the patient the freedom of a choice to choose their payors. When we as patients are not feeling well, we feel helpless and want to be well again, this event can make the patient-provider relationship great and underlines the morals and ethical laws that are important 

Payors operate the economic components of the policy agenda, enroll patients as benefactors, and obtain care services from the providers on s the behalf of the patient’s benefactor. Payors are required to compute their premium rates, dividends, and risk to safeguard economic stability of the care program, and they report to the representatives.

Mission and vision statements

When analyzing the mission and vision statement of healthcare cooperation of America considering each stakeholder HCA has taken on a shared mission, vision, morals, and standards conduct which brings out the best in us independently and as a group.

These principles are used daily to make decisions and monitor our behavior daily. The mission statement is about the hospital being dedicated to the patient’s health care and making improvements and the vision statement is focuses on exceptional health to all people. LEADING HOSPITAL TRUST CARE. (1999-2019)  
Organization’s approach

Haasdsma, C.R. (2015. P. 9-11). Suggest that on February 2009 President Obama promised an incentive for healthcare and on March 2010, the Affordable Care Act became a law requiring that all the United Stated citizens to have health insurance or pay a fine.  This event has caused the Hospital Corporation of America to produce a strategy for contact healthcare providers.

Hospital Corporation of America is significantly important for its deliverance of excellence healthcare services and its diversity and presence in the hospital. HCA delivers care to every patient and diverse culture inside the hospital employees, partners, and communities. HCA manages and operates several hospitals, surgery clinics, diagnostic, and imaging centers and several other services, about 1.5 billion goes into keeping up to date on technology.

   HCA’ approach to business involves increasing its attendant in the current markets, being the leader in performance in clinical and satisfaction measures, recruitment and employing new doctors to meet the needs to produce quality healthcare, leveraging markets continuously to improve profits and selectively tracking plans for growth. To produce profits, hospitals depend on medical services, compensation, and high occupancy levels. Satisfactory pay rates are important to HCA since profits was only at 7.8 percent in 2013.    


In believe, since 2010 change has affected health care, and the stakeholders due to healthcare reform. Changes in healthcare is needed for the success of the hospital. New trends will affect healthcare roles, decision-making, and affect the relationship between several stakeholders.  

Personal or professional trends are important to all stakeholders and they need to remain conscious of and prepare for their impact.  Any stakeholders need to transform and adapt to these new changes, and recognize their effect on clinical healthcare decision-making. These decisions are shared more and more between numerous stakeholders and balance the financial and clinical consequences between stakeholders.


  • I Edu Note. (2017).Internal and External Environment Factors that Influences Organizational Decision Making. Retrieved from
  • LEADING HOSPITAL TRUST CARE. (1999-2019). Mission, Vision and Values Retrieved from
  • Press book. (N.D). 3. Introducing the Key Stakeholders: Patients, Providers, Payors, and Policymakers (the Four P’s) Retrieved from
  • SRA Research Group. (2015). How the Affordable Care Act Will Impact Hospitals Healthcare Systems in 2016. Retrieved from
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