Introduction
Working previously with the case of Asian Healthcare Services (AHS), there was a discussion about the external forces that can affect the healthcare organization. The list of noted external influences included financial pressure, high level of competition, socio-cultural differences, demography of the region where the organization is located, and technological development. It seems that these external factors were stated correctly because they vividly show the barriers that exist for businesses in healthcare. This part of the work will be concerned with the strategic alternatives and strategic plans for medical facilities in the example of AHS.
Main body
Every successful business, at some point, faces the existence of several strategic paths for development. Strategic alternatives are the set of possible directions which represent different ways to come to the ultimate success of the business (Chilingerian, 2021). It is important to note that it requires the use of financial and human resources, so the failure to choose the appropriate alternative may cause the bankruptcy of the organization. Chilingerian (2021) distinguishes two core directions: “strategies aimed at serving the mass market and/or strategies aimed at serving a targeted market segment” (p. 209). These kinds of decisions should be made by any organization, so the importance of well-structured alternatives is undiscussable.
The main feature of strategic alternatives is that the plans that they offer should not be heavily rigid. The effective manager should realize that the organization does not exist in a pure vacuum of firm contexts and relationships. Instead, the volatility of the healthcare environment forces managers to consider the implementation of flexible strategic plans. Thomas (2021) emphasizes how the federally mandated Medicare strikingly changed reimbursement practices in the U.S. Therefore, Thomas (2021) indicates that “developments related to reimbursement, technology, provider relationships, and managed care can occur almost overnight” (p. 244). It is especially related to the current polarization in American politics, so the role of federal mandates in creating a flexible strategic plan is high.
Finally, there is a sense to briefly analyze the situation in AHS by giving concrete recommendations for their strategic development. Firstly, there is a need to elaborate alternative plans for cities where they may open another medical facility. With the problems of getting an adequate place in neighboring towns, there is a sense to reframe the problem and consider the cities that are located far away from Oakland (Chung & Chin, 2015). For example, San Jose or San Francisco consists of a high percentage of Asian people making these places a lucrative field (Statista Research Department, 2022). Secondly, another issue that AHS faces is the gentrification of the area where it is located (Chung & Chin, 2015). It will lead to a decrease in the number of their members. The solution can be the introduction of child care to expand the circle of their patients. This will require the hiring of specialists and proper cultural education of the staff.
Summary
To sum up, healthcare organizations that operate in market economies should always consider the importance of having elaborated strategic alternatives. It refers to having different options for development, which the board can evaluate based on existing data and finances. The importance of strategic plans is their flexibility and adaptability to changing contexts. The main triggers for breaking the status quo are state regulatory mandates and economic influences. Concerning Asian Healthcare Services, the advice for them is to consider the possible facilities in other cities and open a department of child care.
References
Chilingerian, J. (2021). The discipline of strategic thinking in healthcare. In Managing and leading in the allied health professions (pp. 191-226). Routledge.
Chung, K., and Chin, W. N. (2015). Asian Health Services: Rediscovering a Blue Ocean [PDF]. Web.
Thomas, R. K. (2021). Strategic planning. In Health services Planning (pp. 215-245). Springer.
Statista Research Department. (2022). U.S. metropolitan areas with the highest percentage of Asian population 2019. Web.