Overview
Huntington Hospital (HH) is a non-profit regional medical organization in this case study. The 635-bed facility is located in Pasadena, California. In 2002, the US News & World Report indicated that the institution was among the top-performing institutions (Soule & Drabkin, 2015). Its vision is to “be the leader in creating community well-being through world-class health care delivered with kindness and dignity” (Huntington Hospital, 2019, p. 2). Its mission is to “provide excellent health care and compassionate service to each person by bringing together outstanding physicians, caring nurses, professional staff, and advanced technologies” (Huntington Hospital, 2019, p. 3).
HH hired Kim Markey in November 2012 to be its new executive director of the revenue cycle. The executive VPCOO/CFO was looking for a professional who would shift the direction of the Business Service Office, and Markey met the requirements. Markey discovered that the morale in the department was particularly low among many other issues that needed immediate response.
Situational Analysis
Approach to Strategic Planning
Based on the vision and mission statements of HH, one can clearly understand its approach to strategic planning. The organization is committed to offering outstanding healthcare services to every patient. It does this by employing the most qualified and committed healthcare professionals. After joining the firm, Markey re-examined the facility’s revenue cycle and determined ways that changes could be implemented (Soule & Drabkin, 2015). She aligned her strategy with the culture of the institution, which contributed to its success and effectiveness in recuperating its money.
Prevailing Issue
The prevailing issue in Huntington Hospital involves the lack of employee focus on its core values and the low morale and high tension among them. This state of frustration was present in the Business Service Office and other departments involved in the revenue cycle. Ultimately, this affects the overall facility’s billing performance and patient satisfaction compared to others. For instance, according to Willman and Lucke-Wold (2021), there is a “strong positive correlation between poor well-being (low happiness or morale) and poor patient safety outcomes due to increased medical errors” (p. 36). Similarly, the staff at HH felt that they were not always considered by the top management. As this problem continues to grow, the firm’s days of accounts continue to linger before payment.
Strategic Planning Concerns
The lack of morale and high tension among employees has made it impossible for the organization to correct issues encountered in accounts receivable. Without addressing this problem, workers feel that their managers are frustrating them without offering any form of support. It is always the role of leaders to ensure that their presence enhances the performance of those below them and points towards attaining the overall goal of the organization (Khan et al., 2020).
However, in HH, the two parties do not trust each other. This creates an environment that does not foster respect, integrity, or collaboration. Therefore, even though this case study revolves around reducing the delay days on accounts payment, the main strategic planning concerns the lack of morale among employees and poor communication between them and the executive team.
Role
The healthcare manager plays a vital role in terms of strategic planning around the lack of morale and communication at HH. The new executive director was given the responsibility to improve the AR days in the Business Service Office. Markey started by setting new goals and objectives for the revenue cycle and setting direction for the organization’s process (Soule & Drabkin, 2015). She had to begin as a leader who listens and understands the concerns of employees. This can help Markey gain the trust of the workers and ensure they work together for the good of HH.
Stakeholders
The critical stakeholder affected or involved in this issue is the VP-COO/CFO of the hospital. The responsibility of this individual in the organization’s strategic planning is overseeing all operations undertaken. They are the senior leader and sponsor of the revenue cycle and serve as the source of authority and accountability (Heijsters et al., 2022). The patient is the primary stakeholder and is the source of feedback and satisfaction for the institution. Staff members of the Business Service Office and other departments are the main actors and sources of ideas and solutions for the firm (Willman & Lucke-Wold, 2021). External experts and facilitators, such as consultants, will be the source of knowledge and assistance.
Policies
The policies in HH have played a significant role in addressing the issue of lack of morale and tension between them. They have helped create a positive environment for employees to interact and collaborate in working for the institution. For instance, when Markey was appointed as the executive director, she introduced the open-door policy (Soule & Drabkin, 2015). This approach encourages cohesion between workers and the leader within an organization (Musheke & Phiri, 2021). This change impressed many employees, including Kalanjian and DeMonica. However, the goal of the Che policy made the problem more serious (Soule & Drabkin, 2015). It ensured that employees were under supervision by the leaders at all times.
Mission and Vision
The strategic planning around the lack of morale and increased tension align with the mission and vision statements of HH to some extent. HH has always indicated that it aims to offer excellent care services by hiring the right individuals (Soule & Drabkin, 2015). It has fulfilled this by recruiting Markey as the executive director of the institution. This has also enabled it to bring its vision of re-evaluating its revenue cycle and processes to life. However, the implementation of the Che policy goes against its beliefs. It makes workers feel less flexible and lose trust in their managers.
SWOT
Strengths
The first strength of HH is its strong brand image in the market. From the case study, it is recognized as one of the top-performing hospitals in the state of California (Soule & Drabkin, 2015). It is also a level II trauma center in the state, offering high-quality care. This enhances its image in the region and all over the US.
Weaknesses
However, its weakness stems from the breakdown of communication between the managers and employees and the lack of morale within departments. Some of them report that they feel less motivated to work as they are managed at all times. This affects their daily operations and reduces their performance level.
Opportunities
HH also has many opportunities in the California and the US market based on this case study. One of them involves various technological equipment to help enhance their daily performance and quality of care. For example, it can integrate revenue cycle software to reduce AR delays (Soule & Drabkin, 2015).
Threats
The market also presents some threats to the operations of HH. For instance, if its Electronic Health Records (EHRs) do not meet the Medicare set guidelines, it can experience operation challenges and loss of important data. This can be a significant challenge to the efficiency of its operations.
Environmental Factors
Based on the SWOT analysis, one environmental factor that plays a part in terms of this issue is rapid technological development. This factor offers new opportunities and challenges for the organization. For example, the new revenue cycle software that HH adopted streamlined its operations (Soule & Drabkin, 2015). Changes in healthcare policies, such as the Affordable Care Act (ACA), introduced new payment models that affect the revenue cycle (Na et al., 2023). This can either enhance its operations or bring in new challenges.
Current Policies
The current organizational policies have partially addressed the influence of the identified environmental factors. For instance, some of the employees indicated that there are no effective policies to address any issue in the business office (Soule & Drabkin, 2015). Others, like Che, and time and attendance policies encourage micromanaging. They have made this institution not to be actively involved in empowering and engaging workers in the Business Service Office. As a result, they are less motivated to work and reduce the AR delays.
Policy Changes
The first policy change would be developing and implementing comprehensive training and communication within the firm. This will help them familiarize themselves with the new software system, shifts in regulations within the industry, and best practices of the revenue cycle (Soule & Drabkin, 2015). Secondly, the organization can also lift the restriction on workers communicating only through emails with their managers. If they are allowed to reach their leaders whenever they have a concern or an idea, their office morale will significantly be boosted (Musheke & Phiri, 2021). This can help address the prevalent problem in HH and enhance its performance.
Strategic Planning
The healthcare manager can play the role of facilitator and leader in guiding the strategic planning process around policy revision or development. As a leader, Markey should communicate and advocate for the firm’s mission and vision. She can also inspire and motivate the staff in the Business Service Office to embrace the policy changes. As a facilitator, she can coordinate and collaborate with key stakeholders like the executive team, the nurses, physicians, patients, and staff to consider the regulations introduced (Busca et al., 2021). Ultimately, the workers will be able to identify the needs, goals, and priorities of the firm.
Influence
The stakeholders that have been identified play a vital role in shaping the strategic planning process by influencing policy change and development. For example, the executive team may be concerned about the firm’s return on investment and the financial impact of the introduced shifts. The physician and the nurses may focus on how these improvements affect clinical operations and quality of care (Soule & Drabkin, 2015). On the other hand, the patients may focus on how these factors will shape the cost landscape and convenience of activities. The Business Service Office staff may be more worried about the impact of the policies on their workload and satisfaction.
Recommendations
Manager
The course of action that the healthcare manager would take in terms of strategic planning around this issue is to develop a participatory leadership style. It recognizes the value of workers in attaining success by offering feedback and ideas for decision-making (Wang et al., 2022). From the case study, it is clear that the main goal of the Business Service office is reducing the AR delays and increasing cash flow. Using this leadership model, Markey must hold a meeting with the managers and staff to inform and inform them of his new vision and plans to improve performance. This will regain the trust of the staff and increase their morale.
Drivers
One recommendation to ensure that identified key stakeholders in the firm are involved in driving the strategic planning process is establishing and maintaining regular and effective communication. HH can utilize various methods and media like meetings and emails to inform, consult, and collaborate with the on making the proposed changes (Elwy et al., 2022). Another possible move would be creating and facilitating cross-functional and multidisciplinary teams. They can be made up of the key stakeholders to help oversee and guide the whole change process. As a result, each one of them will feel more engaged and have the platform to share their thoughts.
Alignment
One way that HH can align its strategic planning process with its commitments is by revisiting and reaffirming its mission and vision. According to Kopaneva (2019), aligning a firm’s plan and policies with the mission and vision often starts with a clear understanding of these foundational statements. This can help HH ensure that its core values and long-term objectives are prioritized in decision-making. The other way is evaluating and measuring the extent to which these activities contribute to attaining the institution’s plans. Kopaneva (2019) notes that objectives should be stepping stones towards fulfilling the broader mission. For instance, with the mission statement focusing on quality healthcare, the objectives can be on enhancing the experience of the patients and employee well-being. This is important because it would help HH enhance and adjust its strategies.
References
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Elwy, A. R., Maguire, E. M., Kim, B., & West, G. (2022). Involving stakeholders as communication partners in research dissemination efforts. Journal of General Internal Medicine, 37(Suppl 1), 123-127. Web.
Heijsters, F., Santema, J., Mullender, M., Bouman, M. B., Bruijne, M., & Nassau, F. (2022). Stakeholders barriers and facilitators for the implementation of a personalised digital care pathway: A qualitative study. BMJ Open, 12(11), e065778. Web.
Huntington Hospital. (2019). The standards we live by. Web.
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