Strategic Management of Health Care Organizations and Institutions

Never before have individual healthcare organizations have a greater demand to understand the importance of strategic management. Healthcare is in a state of flux, with costs spiraling out of control, and is quickly approaching an inflection point of radical transformation. We, as administrators of individual healthcare organizations, are encroaching on a critical crossroad in healthcare. Expectations persist for the continued pace improvement in medical services and products while constrained resources and tightening budgets are limiting our ability to be everything to all people. In other words, healthcare organizations cannot sustain its continual progress if every organization tackles the broad set of healthcare needs. Governments must decide how best the appropriate funds and other resources to effectively implement health policies across multiple competing and complementary domains. Research institutions must select and exploit specific opportunities that carefully balance centers of excellence, foster collaborative research streams, and engage the academic community for both individual and interdisciplinary advancements. Hospitals must make critical strategic decisions relative to the needs of the community, market demands, and the future direction of the institution. The critical question and need is: how do healthcare leaders derive and make critical strategic decisions that can sustain and support continued growth relative to the constantly changing ecosystem? The purpose of this book is to provide healthcare leaders a blueprint to define a clear strategy for their organization and execute it effectively. This book is bifurcated into two sections. The first section provides the basic tenants of business strategy presented in the context of healthcare settings. We provide the guidance necessary to first formulate and frame a strategic vision given both internal and external influences. We also provide insight into converting the strategic vision into the myriad day-to-day decisions. The second section of the book focuses on healthcare specific considerations that are critical to strategic management. Included topics are the impact of strategy in the face of changing regulatory environments, strategic development in the context of the larger organization, and the impact of strategies relative to mergers, acquisitions, and consolidation.