Essentials of Strategic Planning in Healthcare, Third Edition

by Jeffrey P. Harrison

Overview

An organization may know its current situation down to the last pack of gauze or vial of insulin—but does it know what’s in its future? Successful healthcare strategic planning not only needs to measure how well a hospital or health system is currently performing but also must anticipate what lies ahead. Essentials of Strategic Planning in Healthcare is a complete guide to developing and implementing a strategic plan. Starting with an examination of leadership’s role in strategic planning and the impact of organizational culture, the book then explores the essential techniques, tools, and data for developing a strategic plan and recommends strategic planning initiatives across the continuum of healthcare services. Taking a futurist perspective, author Jeffrey P. Harrison acknowledges the constant changes in regulatory and quality requirements and the evolving healthcare innovations that strategic planning must consider. A comprehensive case study woven throughout the book allows readers to assume the role of strategic planners and apply what they are learning to the entire strategic planning process. This revised edition includes insight into the modern healthcare system and an exploration of trends in mergers and acquisitions, system growth, and value-based care. Additional updates include: current data on healthcare spending, hospital statistics, healthcare employment, and the use of healthcare technology; new content on the use of artificial intelligence and big data in healthcare, as well as the benefits of block chain technology; coverage of future advances in healthcare, including genomics and Medicare for All; and expanded marketing content, including the latest trends in websites, digital outlets, and social media. In addition to study questions and practical exercises in each chapter that are linked to the book’s case study, this edition also offers online exercises to expand students’ learning. Incorporating the latest developments with best practices, this book aims to be the primary resource for university courses in healthcare strategic planning.

Product Details

ISBN-13:	9781640552012
Publisher:	Health Administration Press
Publication date:	10/30/2020
Edition description:	Third edition
Pages:	320
Sales rank:	394,757
Product dimensions:	8.00(w) x 10.00(h) x 0.70(d)

About the Author

Jeffrey P. Harrison, PhD, FACHE, MBA, MHA, is a professor of health administration at the University of North Florida (UNF) and past chair of the UNF Department of Public Health. He has faculty appointments at the UNF Brooks College of Health and the UNF Coggin College of Business, where he teaches healthcare finance, health information technology, and strategic planning. Before joining academe full-time in 2002, Dr. Harrison held a wide range of leadership positions, including chief operating officer of a hospital, director of a large medical group, and leader at the health system level. He is the founder and president of Harrison Consulting Group Inc., a healthcare consulting firm. Dr. Harrison has a PhD in health services organization and research from Virginia Commonwealth University, a master’s degree in business administration from the College of William and Mary, and a master’s degree in health administration from the Medical College of Virginia. A Fellow of the American College of Healthcare Executives (ACHE), he is board certified in healthcare management. Dr. Harrison has written more than 40 articles and book chapters on healthcare management and strategic planning, and has delivered national and international seminars on professional development to thousands of healthcare executives. He has received numerous honors, including ACHE’s Regent’s Award for North Florida in 2008. He was selected as one of the Top 100 Health Administration Professors and Leaders by MHA Guide in 2013. In addition, he was named one of the most influential people in Jacksonville healthcare in 2013 by Jacksonville Magazine. He is a member of the Healthcare Financial Management Association, the Medical Group Management Association, and AcademyHealth, and serves on the editorial board of Health Care Manager.

Table of Contents

Preface xiii

Acknowledgments xvii

Coastal Medical Center Comprehensive Case Study 1

Introduction 1

Healthcare Costs 2

The Competition 2

Highlights of Coastal Medical Center 3

Historical Perspective 4

Board of Trustees 6

Parent Corporation 7

Medical Staff 8

Subsidiary Companies 9

Executives and Middle Management 11

Corporate Staff 11

Duplication of Functions 12

Service and Professional Contracts 13

Materials and Management 13

Special Projects 13

New CEO 14

General Conditions 16

New Business Initiatives 17

Value-Based Purchasing 17

Inpatient Data and Case-Mix Index 17

Conclusion 18

Exercises 18

References 18

Appendix A Population, Community Demographics, and Income Data 18

Appendix B Coastal Medical Center: Income Statement by Calendar Year (January 1-December 31) 20

Appendix C Coastal Medical Center: Hospital Consumer Assessment of Healthcare Providers and Systems Scores 21

Appendix D Coastal Medical Center: Balance Sheer 21

Appendix E Coastal Medical Center: Financial Ratios 22

Appendix F Coastal Medical Center: Leadership Survey 25

Appendix G Coastal Medical Center: Value-Based Purchasing 26

Appendix H Coastal Medical Center: Inpatient Data 28

Chapter 1 Leadership, Mission, Vision, and Culture 31

Learning Objectives 31

Key Terms and Concepts 32

Introduction 32

Definition of Leadership 35

Top Leadership Roles 35

Other Key Leadership Roles 40

Physician Leadership Roles 44

Managed Care Organizations 45

The Impact of Ownership on Mission, Vision, and Culture 47

Financial Implications 52

The Impact of Ownership on Profits 54

Organizational Change 57

Summary 58

Exercises 58

References 60

Chapter 2 The Shared Motivation of Transformational Leadership Debra A. Harrison 65

Learning Objectives 65

Key Terms and Concepts 66

Introduction 66

Four Common Characteristics of Transformational Leaders 68

Knowing When to Use Transformational Leadership 73

The Role of Transformational Leaders in Managing the Strategic Planning Process 76

Ethics as a Foundation for Leadership and Strategic Planning 77

Summary 80

Exercises 80

References 81

Chapter 3 Fundamentals of Strategic Planning 85

Learning Objectives 85

Key Terms and Concepts 86

Introduction 86

The Internal and External Considerations of Any Endeavor 87

The Environment Inside the Organization 88

The Environment Outside the Organization 89

Gap Analysis 91

Planning Areas 94

Evaluation of Performance 98

Planning at the Local, Regional, and National Levels 100

Summary 102

Exercises 102

Notes 103

References 104

Chapter 4 SWOT Analysis 107

Learning Objectives 107

Key Terms and Concepts 108

Introduction 108

Steps in SWOT Analysis 108

Internal and External Perspectives 114

Force-Field Analysis 114

Supplementing SWOT Analysis with Gap Analysis Data 116

Downstream Revenue 117

Summary 118

Exercises 119

References 121

Chapter 5 Healthcare Marketing 124

Learning Objectives 124

Key Terms and Concepts 125

Introduction 125

Focuses of a Marketing Plan 126

How Strategic Management Can Improve Healthcare Marketing 126

Marketing Media in the Current Environment 129

Local Marketing 135

Regional Marketing 136

Summary 137

Exercises 137

References 138

Chapter 6 Health Information Technology Jeffrey P. Harrison Liubov O. Harrison 141

Learning Objectives 141

Key Terms and Concepts 142

Introduction 142

Management of Healthcare Data 143

Strategic Initiatives Using Health Information Technology 149

Strategic Planning for Health Information Technology 154

Healthcare Information Resources 159

Summary 163

Exercises 164

References 166

Chapter 7 Designing an Effective Business Plan 171

Learning Objectives 171

Key Terms and Concepts 172

Introduction 172

Components of a Healthcare Business Plan 172

The Workflow 174

Planning Tools 185

Summary 186

Exercises 187

References 189

Chapter 8 Communicating the Strategic Plan 192

Learning Objectives 192

Key Terms and Concepts 193

Introduction 193

Presentation of the Strategic Plan 193

Summary 200

Exercises 200

References 201

Chapter 9 Accountable Care Organizations and Physician Alignment 203

Learning Objectives 203

Key Terms and Concepts 204

Introduction 204

Clinical Integration 205

Patient-Centered Medical Home 207

Potential Structures for Physician-Hospital Alignment 209

Physician Engagement in Strategic Planning 216

Summary 216

Exercises 216

References 219

Chapter 10 Post-Acute Care 224

Learning Objectives 224

Key Terms and Concepts 225

Introduction 225

Role of Post-Acute Care in Value-Based Care 226

Healthcare and US Population Demographics 227

Skilled Nursing Facilities 228

Inpatient Rehabilitation Facilities 228

End-of-Life Care 231

Adult Health Day Care Centers 236

Memory Care Centers 237

Summary 237

Exercises 237

References 238

Chapter 11 Political, Business, and Ethical Decisions in Health Systems 242

Learning Objectives 242

Key Terms and Concepts 243

Introduction 243

Hospital Mergers and Acquisitions 244

Integrated Delivery Systems 245

Strategic Planning at the Health System Level 248

Summary 252

Exercises 253

References 254

Chapter 12 Quality, Safety, Patient Experience, and Value Debra A. Harrison Brian J. Hernke 257

Learning Objectives 257

Key Terms and Concepts 258

Introduction 258

Definition 258

A Growing Demand for Quality-Related Data 264

Other Quality Considerations 265

The Value Frontier 269

Incorporating Pay for Performance into a Strategic Plan 274

Summary 275

Exercises 275

References 276

Chapter 13 The Future of Healthcare Debra A. Harrison 281

Learning Objectives 281

Key Terms and Concepts 282

Introduction 282

Medical Advancements 282

Value-Based Care and New Payment Models 284

Technology Impacts 289

Operational Considerations 291

Summary 291

Exercises 292

References 293

Epilogue Ten Concepts for Effective Leadership R. Timothy Stack 297

Have Mentors 297

Have Fun 298

Be a Servant Leader 298

Be Open-Minded 298

Be an Executive Instead of a Caretaker 298

Make Other People Stars 299

Conduct Rounding 299

Surround Yourself with Great People 299

Be Prepared, or Find the Answers 299

Look for Solutions 300

Reference 300

Glossary 301

Index 313

About the Author 333

About the Contributors 335