Why you need a healthcare business strategy
A doctor’s take on the importance of understanding and implementing strategy
Recently, Michael E. Porter, Ph. D, and Thomas H. Lee, M.D. published an article in The New England Journal of Medicine about the importance of healthcare organizations having—and aligning around—a business strategy. The authors suggest that as the healthcare industry rapidly evolves, hospital organizations can no longer operate under the pretense that if patients continue to come through the door, they’ll be fine. But as healthcare reform continues, care organizations must find a way to improve patient experiences and outcomes, while reducing costs, in order to thrive in the new marketplace.
In order to create a strategy, Porter and Lee recommend first answering these six interdependent questions:
- What is our goal?
- What businesses are we in?
- What set of conditions and patient populations should we compete in?
- In every business where we choose to compete, how will we be different?
- What synergies can we create across our existing business units and sites?
- What is our appropriate geographic density and scope?
Once you begin to answer these questions, you’ll be able to better lay out the plans for the future. Do you need to expand or reduce your offerings? Do your patients feel as though they received value from your organization—and would they recommend your hospital? Is your marketing in line with your business strategy? You must answer these questions in order to position your organization correctly against the competition.
The article states “…a strategy anchored in value is inherently good for both patients and the professional satisfaction of those who care for them.” Taking the time to step back and evaluate how your organization is currently operating and laying out plans for the future will set the stage for future success. As patients become more powerful and demand a high-level of value, and as competition continues to thrive and meet these demands, it’s important to create a solid strategy to keep your organization relevant and desirable to patients.
To read the full article, click here.