Section 3: Strategic Direction Strategic direction requires ✓ Solved

Strategic direction requires health administrators to analyze three key areas: a. Resources b. Stakeholder expectations c. The external environment. In their research, Harrison and Thompson (2014) suggested health administrators use the results of their analysis to promote organizational innovativeness and to challenge the status quo. Challenging the status quo requires collaboration across invisible boundaries to accomplish innovative projects that, together in partnership, accomplish more than can be accomplished alone.

Strategically directing healthcare organizations into successful new partnership ventures requires skill in leading teams into uncharted territory outside the comfort level of one or more stakeholders in the partnership. Through interprofessional collaboration, areas of uncertainty are addressed by stimulating discussion of these areas and identifying mutually agreeable solutions. In Section 1, you reviewed the leadership competencies needed by health administrators and through the administrator lens critiqued community health needs assessment, thus examining the external environment. In Week 3, you considered organizational and community resources and stakeholder expectations through a SWOT analysis of forming a partnership with community health and designed your strategic plan for this partnership.

In Section 2, you examined the role of healthcare regulatory agencies in partnerships, then considered the legal aspects when forming formal partnership agreements. Additionally, you reviewed the performance outcomes of a potential hospital partner. In this final section, you will use your strategies to finalize your plan to improve community health and improve organizational performance through a community health/nonprofit hospital partnership project. Leaders inspire others to be effective without coercion; rather, they inspire effectiveness and innovation through the promotion of the value of their work (Sull, 2007).

Financial Impact of a Community Health Partnership. In Week 5, you learned the funding burden of community/hospital partnerships is borne by hospitals. However, according to an expert in multi-sector healthcare collaboration, hospitals that invest in community partnerships report a greater return on investment (ROI) for both entities in the partnership. This week, you will begin preparing your budget for the partnership you are developing with the community health department.

Given the three goals, you must budget for the added expenditures in operating costs and salaries and benefits. Remember to consult the Bureau of Labor Occupational Outlook Handbook for the needed salary information. Projecting expenses must be completed to ensure resources are allocated to a project. This week, you are creating a budget plan for the project into which you will enter with the community health department. In your scenario as the nonprofit hospital CEO, you are encouraged to learn from your future partner, the CEO at the community health department, that they will share the cost of the collaborative project and pay for examination room equipment and supplies, furniture, office materials, printing costs, and the data software programs for patient education.

A nonprofit hospital’s investment in community health is mandated by the ACA with financial penalties for non-compliance. In addition, nonprofit hospitals risk loss of their IRS status as a tax-exempted without demonstration of contributing to the community benefit (Carlton & Singh, 2018). The net cost (i.e., the total costs minus any offsetting revenues) of the hospitals’ spending on community health improvement provides the basis to calculate the return on investment. The overarching missions of healthcare organizations are to improve the health status of their community through the delivery of safe and quality healthcare services.

In recent years, healthcare organizations are seeking partnerships with community organizations to take a broader approach to improve community health. In addition to breaking down perceived silos between healthcare organizations and community-based health organizations, the formation of partnerships is gaining the attention of research and philanthropic organizations who are making grant funds available to healthcare administrators to examine how community health/nonprofit hospital partnerships reduce overutilization of the healthcare delivery system, thus reducing healthcare costs through proactive activities, especially in older adults.

A search of The Commonwealth Health Fund website will reveal grants awarded for organizations forming partnerships to improve performance; the value of grant awards is no less than one-quarter million dollars. With any partnership that requires a start-up financial stake, there must be an assessment of the ROI, both from a holistic perspective and fiscal perspective. The net cost (i.e., the total costs minus any offsetting revenues) of the hospitals’ spending on community health improvement provides the basis to calculate the fiscal return on investment (Carlton & Singh, 2018). Communities that have formed partnerships are reporting the holistic ROI through the promising results to improve health outcomes and reduce health disparities.

Merely professing that it’s the right thing to do may sway some stakeholders, but not all. There will be skeptics, and only after providing information on the anticipated ROI of forming the partnership to carry out clearly established goals will these naysayers get onboard with the project.

Paper For Above Instructions

In today's healthcare landscape, the strategic direction of healthcare organizations plays a crucial role in ensuring they can meet the evolving needs of their communities. As administrators devise a partnership model between community health departments and nonprofit hospitals, a coherent strategic plan that aligns resources, stakeholder expectations, and the external environment must be established. This paper elaborates on the strategic considerations and required budget for a successful partnership aimed at improving community health and organizational performance.

The first key area of focus is resources. Effective resource allocation is critical in partnership planning, particularly in budgeting for salaries, benefits, and operational costs. As established, nonprofit hospitals face significant financial incentives to engage in community partnerships due to regulations like the Affordable Care Act (ACA). Therefore, the proposed partnership must leverage community resources to decrease costs while maximizing community benefit. Understanding the resources available, including shared equipment costs, is fundamental in optimizing expenditure projections and ensuring each partner's investment is justified and sustainable.

Secondly, stakeholder expectations must be diligently analyzed. Stakeholders in this partnership include hospital leadership, community health officials, patients, and potentially other organizations with vested interests in community health outcomes. By effectively communicating the partnership's objectives and anticipated return on investment (ROI) to these stakeholders, resistance can be mitigated. Engaging stakeholders in conversations about their expectations and concerns will establish a collaborative environment that enhances trust and commitment to the partnership goals. Open dialogue about the financial implications will be instrumental in gaining stakeholder buy-in, particularly regarding shared expenses and funding commitments.

The external environment is the third focal point within strategic direction. Health administrators must stay attuned to regulatory changes, shifting demographics, and emerging community health needs. An environmental scan can provide insights into how external factors may affect the viability of the partnership. Leveraging this information allows administrators to tailor the partnership strategy to effectively address community health priorities while also identifying potential funding opportunities, such as grants aimed at partnerships that improve community health outcomes.

Upon conducting a SWOT analysis in earlier sections, the identification of strengths, weaknesses, opportunities, and threats has equipped administrators with a clearer perspective on internal capabilities and external challenges. Taking the knowledge acquired from the previous assessments, this final plan should prioritize constructing a robust budget that reflects the partnership’s operational needs and strategic goals.

The budget proposal will outline several cost components, such as operational expenses, salaries, and construction costs for shared spaces, integrating the costs of examination rooms and consultation offices within the nonprofit hospital's utilization of community health department resources. Recognizing that both parties will share financial responsibilities, the projection must accurately reflect anticipated costs and identify methods for cost-sharing agreements. The involvement of community health in subsidizing certain expenses, like office materials and printing, will further enhance the feasibility of the overall budget.

Transportation and maintenance of healthcare facilities are also critical factors in effective budgeting. The commitment to maintaining quality healthcare delivery cannot be understated. By evaluating potential costs associated with maintaining shared spaces and expenditures for specialized equipment or software programs, the partnership can anticipate challenges and refine budget allocations accordingly.

Moreover, administrators should incorporate metrics for evaluating the ROI of the partnership. Identifying relevant performance outcomes—such as decreased emergency room visits or reduced readmission rates—will substantiate the effectiveness of the collaborative efforts. Quantifiable metrics instill confidence in stakeholders regarding the value of the investment.

In conclusion, strategic planning for a community health partnership between a nonprofit hospital and a community health department requires a thoughtful approach to analyzing resources, stakeholder expectations, and external factors. A comprehensive understanding of these elements, coupled with robust financial projections, will facilitate an effective partnership that responds to community health needs and enhances organizational efficiency. Stakeholder engagement, environmental awareness, and precise budgeting are critical components that will ensure the initiative's sustainability and impact.

References

• Amarasingham, R., Xie, B., Karam, A., Nguyen, N., & Kapoor, B. (2018). Using community partnerships to integrate health and social services for high-need, high-cost patients. The Commonwealth Fund Issue Brief.
• Bureau of Labor Statistics. (2019). Occupational outlook handbook, medical and health services managers.
• Carlton, E., & Singh, H. (2018). The return on investment of community health partnerships.
• Harrison, J. S., & Thompson, S. M. (2014). Strategic direction. In Strategic management of healthcare organizations: A stakeholder management approach. New York, NY: Business Expert Press.
• Powers, M. (2018). The community's emerging role in value-based health and social services. Generations, 42(1), 4-8.
• Silow-Carroll, S., & Rodin, D. (2013). Forging community partnerships to improve health care: the experience of four Medicaid managed care organizations. The Commonwealth Fund Issue Brief.
• Sull, D. N. (2007). Closing the gap between strategy and execution. MIT Sloan Management Review.