Question

How can a middle strategy be successful in healthcare? Write a one-page paper, using APA format, on what a healthcare organization must do to make this strategy successful. Please be sure to include what problems might be presented in creating this type of strategy in healthcare?

Answer 1

Strategic management of health care organization: engagement, behavioral indicators, and clinical performance", Giuseppe Speziale

European heart Journal Supplement,

Volume 17, I March 2015

Abstract:

The healthcare sector is struggling between two factors: increasing difficulty in satisfying a demanding user and the need to make changes in the internal organization to keep pace with the changing technology. Therefore this strategy of middle aims at maximizing value for patients by obtaining best outcomes at lowest cost and moving from a physician centered organization to an organization driven care process. In todays scenario, the fee for service concept is at a transition state to value based payments. This forces the healthcare providers to look round the corner and developing new capabilities under value based payments. The strategy of middle will help then to operate in both the worlds.A successful transition strategy will be required to be incorporated to meet the goal of patient centered accountable care.

A successful strategy for the middle requires a leadership focus on not only value but also maintaining flexibility and ongoing innovation. For the success of the strategy of middle :

• Attention to the volume and margins is important. Arrangements are made to shrink the utilization. Protecting the commercial fee for services volume will be essential. User friendly patient access, Appropriate physician availability, network plan, all are the part of an effective plan.
• Price transparency: Pricing will influence the customers decision to purchase insurance products. The health system should adopt more sophisticated pricing strategy .
• Population health strategies: Success in population health will require development of clinical capabilities and great collaboration between payer and provider organization to manage disease effectively.

The future of healthcare will be based on larger and integrated system, a new relationship between hospital and physicians and shift of many inpatient procedures to outpatient or home settings.Organizational culture requires measurement of value namely outcome and cost. Hospital and healthcare organizations are operating in a competitive environment with an increasing pressure to improve quality and reduce costs.

The problems involved are:

• Persistence of fee-for- service payment.: Fee for service payment is embedded in most provider cultures. When it comes to paying for physician visit, fee for service payment still remains a dominant method of paying.
• The change in culture is often difficult but its important to realize the strategy. A change in the organizational culture is required for successful implementation of the strategy.

References:

1)Giuseppe Speziale, European heart Journal Supplement, " Strategic management of health care organization: engagement, behavioural indicators, and clinical performance", Volume 17, I March 2015

2) BDC providers, Its not so simple why provider organization needs ' A strategy for the middle',