Strategy Formulation Case Instructions- Formulate a response to the case given b
ID: 3768367 • Letter: S
Question
Strategy Formulation Case
Instructions-Formulate a response to the case given below. Draw upon understanding gained from the module lectures and readings. Answers should be between 1-2 pages long.
Tewksbury Hospital was previously profitable but in recent years, with declining reimbursements and a dwindling urban patient base, this large hospital has been running solidly in the red. Mr. Johnson, the new CEO, is a business executive who was brought in recently from outside of the healthcare industry. Prior to taking his new position at Tewksbury, he spent years engineering turnarounds of poorly performing manufacturing companies. Johnson now aims to apply this expertise to Tewksbury. His perception is that for Tewksbury to become profitable, it must significantly lower costs and increase volume. He believes the hospital can increase volume by lowering prices, though not as much as it will be lowering costs. Johnson’s vision is that Tewksbury should become the lowest cost, and lowest priced, hospital option in the city. Consequently, with a view toward focusing on efficiency, he has instituted reviews of all staffing ratios, building and remodeling projects, and technology. He has been busy negotiating new supplier contracts to lower prices for the hospital, and he has been negotiating with insurance companies to allow Tewksbury to accept slightly lower reimbursements, in return for expected higher patient volumes as a preferred network provider. Johnson is also enticing local physicians to use clinic facilities associated with the hospital by offering them minor perks, in the hope that they will send their hospital patients to Tewksbury instead of elsewhere.
The problem for Tewksbury at the moment is that a huge debate has broken out in the midst of their long-planned strategic planning meetings. The previous CEO had a completely different vision for the hospital. In support of that vision, he convinced the CIO, Dr. Kimbel, to begin negotiating alliances with a variety of technology partners to make Tewksbury one of the most completely “wired” hospitals in the country. Before Johnson came on board, she had sketched out a plan for Tewksbury IS that involved completely new EHR, CPOE, pharmacy, and lab systems, a new radiology information system, a state of the art PACS, and tablet computers and smartphones for all physicians and nurses. In her plan, these systems would be completely interoperable, and, along with newly refurbished operating rooms, Tewksbury would become known as the technology leader in delivering state-of-the-art healthcare services. Dr. Kimbel, a much sought-after computer scientist, has been at Tewksbury only a few years, but she now has threatened to quit. Johnson wants nothing from IS but lower costs and greater capacity, which seems to run counter to Kimbel’s plans.
You are a consultant brought in as an objective specialist to help Tewksbury define a clear IT strategy. How should this strategic planning process move forward?
Explanation / Answer
The strategy planning process includes implementing the following :
1) A certified, efficient EHR system.An electronic health record (EHR) is a digital version of a patient’s paper chart. EHRs are real-time, patient-centered records that make information available instantly and securely to authorized users. While an EHR does contain the medical and treatment histories of patients, an EHR system is built to go beyond standard clinical data collected in a provider’s office and can be inclusive of a broader view of a patient’s care. EHRs can: The one piece of health technology that has received more attention than any other over the past several years is the EHR. It's understandable, since the federal government is providing stimulus payments to hospitals and the ambulatory settings for providers implementing a certified EHR as quickly as possible.
2.Surgical and service line technologies. When it comes to surgical technologies within a hospital, the administration needs to work in conjunction with its physicians and nurses to determine the best strategy. It may be instinctive to purchase the latest and greatest technologies that hit the market, but surgical equipment has high upfront costs, so it must be properly utilized and have a productive reputation. Service line technologies — such as imaging devices for invasive cardiology procedures and non-invasive oncology platforms — could be considered to give physicians and patients more options for treatment.This might require costs but with such technologies the overall profit can increase as more patients need treatment and these technologies will help them in the best possible way even though some money might be needed to invested.
3.Social Media:. Social media technologies such as Facebook, Twitter, CaringBridge, podcasting, wikis, blogs and others are not new (Facebook has already been around for eight years), and the services are all extremely accessible. However, not all hospitals utilize the technology — or at least utilize it in a well-structured manner.
If hospitals want to communicate and reach the broadest patient population possible, they should instill a social media plan. The basics of any social media plan include assessing the hospital's readiness, experimenting with the different types of social media technologies and services, establishing a direction, creating dialogue and monitoring analytics to see how a hospital's presence is being received.This can help the doctor to know about a paient who is even in another country and the provide them with treatment since the cost involved is less. It only requires a computer and internet connection.The hospital can have a wireless LAN with computers connected to it and doctors and nurses can access them to interact with patients.
4.Patient-friendly technologies. At the end of the day, hospital reputation is a major factor with regard to patient volumes.the cost involved is less and it nvolves more patients=>more profit.
-> Central scheduling: Having a single number for patients to call in order to schedule appointments and tests simplifies an otherwise roundabout task. "Most hospitals fail to implement central scheduling because the various departments insist on keeping their own schedules that they control for various reasons
->Speech-assisted automated attendant systems: Hospitals can stay competitive and also save money with a voice recognition phone system. The systems could reduce staff overtime and helps to avoid dropped calls or unpleasant patient interactions.
->Bedside computer terminals: Bedside computer terminals allow patients to see the processes happening around them while still enabling physicians and nurses to update patient records efficiently.
->Online bill pay: Patients are able to pay their phone, cable, utility and other service bills online. Hospitals that offer the same ability can stay competitive, and Mr. Ciotti says it could even improve the hospital's accounts receivable.
5.Healthcare staffing management technology. Staffing and labor costs can consume more than 50 percent of expenses at most hospitals. In order to keep those costs in check, hospitals can implement staffing management technology to keep scheduling at an optimal state without sacrificing patient care.
6.Smartphones, tablets and applications. Over the past several years, the omnipresence of smartphones, tablets and their applications has been one of the biggest cultural shifts in the hospital setting, as well as society at large. They provide a wealth of information for physicians and other clinicians — and all within a fingertip's reach. They can help doctors send the reports online and stay in touch with the patients with quick followup. Rather than calling ,doctors can use applications for texting to inform patients.The patient can ask question through them and the doctor can answer them. This will ensure good business in the fastest possible way and a result ,more patients will like the use of technology and they will be attracted leading to the overall profit of the hospital and good business including good treatment in the best possible way.