Presented by: Team B

Orthopedic Service Line: Hip and Knee Surgery

STRATEGIC PLANNING

BACKGROUND AND OVERVIEW

BACKGROUND AND OVERVIEW

Healthcare organizations have to be strategic in order to gain the competitive edge

SJHMC has 5,036 employees and 1,300 medical staff

SJHMC is one of the nation’s top 100 hospitals including one of the top 15 teaching hospitals

SJHMC has many specialties including orthopedic programs

Development of strategic plan is critical for success

BACKGROUND AND OVERVIEW (continued)

There are 51.4 million inpatient surgeries done each year

719,000 knee surgeries332,000 hip surgeriesBy year 2040, there will be 80 million elderlyIncrease elderly population will increase the

need for hip and knee surgeriesImproves quality of life and risks

DIRECTIONAL STRATEGIES

Guides an organization as it grows and develops

Includes and organization’s Mission, Vision, Values and Goals

St. John Providence Health System Mission

St. John Providence Health System, as a Catholic health ministry, is committed to providing

spiritually centered, holistic care which sustains and improves the health of individuals in the

communities we serve, with special attention to the poor and vulnerable

Vision

Together, we deliver the highest quality patient care experience, everyday, everywhere, for

everyone

Values

We are called to:

Service of the Poor – generosity of spirit, especially for persons most in needReverence – respect and compassion for the dignity and diversity of lifeIntegrity – inspiring trust through personal leadership

Values (continued)

We are called to:

Wisdom – integrating excellence and stewardshipCreativity – courageous innovationDedication – affirming the hope and joy of our ministry

SJHMC Hip and Knee Program Goals

Decrease length of stayIncrease patient and physician satisfactionDecrease readmission ratesImprovement in the discharge planning

processQuality improvementImprove market strategies

EXTERNAL ENVIRONMENT STRATEGIES

External Issues Health Care Organizations are facing:

Legislative/PoliticalEconomic ChangesSocial/Demographic ChangesTechnological ChangesCompetitive ChangesRegulatory Changes

Economic Changes

Increasing cost of health care

Decreasing cost of reimbursement

Increasing number of uninsured

National and global economic downturn

U.S. Census Bureau

U.S. POPULATION

UninsuredAge Over 65

Data as of Oct 2012. www.statisticsbrain.com

Technological Changes

Rapid increase in technological advancement

Acquisition of Makoplasty – a robotic device Upgrade from Quadruple Aims Model to C-Aims

Model – measures outcomes

EXTERNAL APPROACH ???

Reactive ApproachUnderdeveloped marketing and advertisingLack of capital

Focused Factory ApproachSeamless process for better patient experience

Weakness: Integration of Operational Strategies and Implementation

Hip and Knee Program

Fastest growing product17% increase is predicted by the year 2021Mostly availed by patients over 60Mostly elective to increase quality of lifePatients over 60 has some health care

coverage

SERVICE AREA COMPETITOR ANALYSIS

SJHMC’s service area includes: St. Clair, Macomb, Oakland, Wayne, Lapeer, Genesee, Livingston and Washtenaw

Service area was identified because of its location to the SJPHS and the competitors were determined based on the location, population and service brand of the orthopedic field

SERVICE AREA COMPETITOR ANALYSIS (continued)

Population

MacombOaklandWayneSt Clair ShoresLapeerLivingstonGeneseeWashtenaw

COMPETITORS

Number of Hip and Knee Cases (2011)

Beaumont HospitalSt Joseph Mercy OaklandSt John Hospital

INTERNAL ENVIRONMENT ANALYSIS –SERVICE DELIVERY

Point of Service Strengths

Point of Service Weaknesses

• The location of registration on day of surgery is conveniently located right off entrance.

• There is no delay from registration to pre-operative location.

• The orthopedic unit is located in a modern area of the hospital and the area is clean in appearance.

• Coming through same day surgery first before going to pre-operative area.

• Parking is not close to entry where patients go to same day surgery.

• Same day surgery is outdated in appearance compared to the orthopedic unit.

INTERNAL ENVIRONMENTAL ANALYSIS- SERVICE DELIVERY (continued)

• The patient rooms are all private. The rooms are equipped with a flat screen television. There is room for a family member to spend the night

• The support team are highly trained individuals specialized in orthopedic surgeries.

• The orthopedic unit struggles to maintain satisfactory patient experience scores.

INTERNAL ENVIRONMENT ANALYSIS – SERVICE DELIVERY (continued)

Point of Service Strengths Point of Service Weaknesses

• There is a brand new gym with state of the art equipment located on the unit for patients to rehabilitate.

• Patients receive workout clothes to wear at the gym.

• Spa services free of charge are offered to the patients. Services include hair salon, nail salon and massage therapy.

• The orthopedic unit had challenges with nurse turnover and retention.

• Patients are asked to give a personal history including review of their medications before and after surgery.

• Orthopedic services are not recognized as a center of excellence.

INTERNAL ENVIRONMENTAL ANALYSIS – COMPETITIVE RELEVANCE (STRENGTHS)

Point of service strengths

Is the value of the strength high or low?

Is the strength rare?

Is the strength easy or difficult to imitate?

Can the strength be sustained?

Spa services free of charge are offered to the patients. Services include hair salon, nail salon and massage therapy.

H Y D Y

INTERNAL ENVIRONMENT ANALYSIS – COMPETITIVE RELEVANCE (WEAKNESSES)

Point of service weaknesses

Is the value of the weakness high or low?

Is the weakness common among competitors?

Is the weakness easy or difficult to correct?

Can competitors sustain their advantage?

Parking is not close to entry where patients go to same day surgery.

H Y D Y

STRATEGY FORMULATION AND EVALUATION

STRATEGIC FORMATION OVERVIEW

Step 1: The initial component is to generate strategic goals from the mission, vision and values of the organizationStep 2: Once the strategic goals are established, the governing board will be able to meet and frame directional strategiesStep 3: Complete directional strategiesStep 4: Comprehensive strategic thinking mapStep 5: Alternative strategiesStep 6: Evaluation

ADAPTIVE STRATEGY

Maintenance of Scope with focus on enhancement

How the Strategy is Completed

Process Improvement

Increasing Quality

Decreasing Cost

Increasing Clinical Results

Methods to Evaluate Strategy

• TOWS Approach – (threats, opportunities, weaknesses, strengths

• SPACE Analysis – (strategic position and action evaluation)

MARKET-ENTRY STRATEGY

It is the means for accomplishing the adaptive strategy

Strategy must be linked to chosen adaptive strategy

Both drive the planning and implementation

CHOSEN STRATEGY

Reconfiguring the Value Chain Strategy

Changing the sequence of activities they perform

Changing the value delivered to the customer

Unit renovation Addition of spa and gym Hair and nail services/massage Leaner process of the whole admission-discharge experience

STRATEGIC POSTURE- SPACE MATRIX

STRATEGIC POSITION

Escaped focus as Center of ExcellenceLags behind competitors for DRG 469 and 470SJHMC’s physical environment and amenities are

comparable and superior in some casesMarketing and advertising is severely

underdevelopedCompeting hospitals share many of the same

medical staff; loyalty is fragmentedPatient satisfaction scores are comparable

STRATEGIC POSITION (continued)

Focus on initiative to increase customer and physician satisfaction and loyalty

Collaborate with physicians on improvement initiatives

Increase community involvement activityIncrease associate engagement and satisfactionEncourage nursing certificationStreamline processes from admission to discharge

ADDENDUM A

Maintain and enhance the programsCritical success factor is product

competitivenessAction Plan:Promote ancillary services/amenitiesIntegrate holistic modalitiesIntroduce home care reps during

hospitalization

ADDENDUM A (continued)

Increase the market shareCritical success factor is positive word of mouth

advertisingAction Plan:Nursing and or physician staff to provide community

education and opportunitiesPublish articles or patient stories in church flyers or

community papersIncrease staff participation in community events such as

Arthritis walks or senior expos

ADDENDUM A (continued)

Identify as a Center of ExcellenceCritical success factor is financial strengthAction Plan:Continue to utilize and purchase technologically

advanced equipmentProvide continuing education in practice advancementsOffer incentive for nurses to obtain orthopedic

certificationObtain Joint Commission specialty certification

SUMMARY/CONCLUSION

SJHMC has the potential to become a leader in the marketRequires the organization to take a more competitive position

As market share increases, revenue will followIncrease revenue will also allow us to remain competitive and

ahead of the competition

References

Center for Disease Control and Prevention. Retrieved on May 18, 2013. www.cdc.gov.

Grundy, P. (2013). Interview Reflection.

Medicare. www.medicare.gov

Southeast Michigan Council of Governments. www.semcog.org

St. John Providence Health System website. www.stjohnprovidence.org

Swayne, L., Duncan, J., & Ginter, P. (2008). Strategic management of health care organizations. San Francisco, CA: Jossey- Bass.

QUESTIONS???COMMENTS??

Thank you for your time.

THANK YOU FOR YOUR TIME

TEAM B MEMBERS:

PAULA GRUNDYAMY TOMANSIMONETTE ELGERTBROOK GRZADZINSKIJENNA GODFRYD