Strategic Planning - Case #1 Pediatric Hospital Strategic Plan and Financial Analysis
The impending opening of a state-of-the-art, university-affiliated children's hospital prompted this institution to prepare a strategic plan that would position it to become the premier provider of children's health services in its geographic region. In addition, no financial forecast regarding the new facility's viability had been prepared prior to construction.
Our approach to the two issues was two-pronged. First, the consultants with Turning Point Healthcare Advisors, Inc., developed a process to secure input from university administrative personnel as well as from key physicians on the faculty. As a result of one-on-one interviews as well as a number of group meetings, the university's pediatric component crafted an energizing vision statement, identified its considerable strengths, and established a set of values that supported and clarified its mission.
For the second and separate task, we prepared a detailed financial forecast that demonstrated how well the hospital would fare financially under several different, volume-dependent scenarios. Each scenario required a detailed cost allocation for all indirect and some direct expenses since these costs were co-mingled with costs related to the main hospital and to the faculty.
We successfully accomplished the following:
Developed a strategic planning process tailored to the hospital's needs
Articulated the institution's mission, vision, and values clearly and concisely
Prepared a market analysis and forecasted inpatient and outpatient demand
Developed a strategic plan that
Focused on market- and patient-driven approaches to healthcare delivery
Mandated teamwork among faculty and other diverse interests
Set priorities in three categories (operations, strategic alliances, and clinical services)
Assigned target completion dates and responsible individuals to each task
Suggested an organizational restructuring to address coordination of care and service delivery issues
Identified ten factors critical to the hospital's continued success
Prepared a detailed financial forecast including both occupancy and capital costs associated with the new hospital
Identified areas of potential expense reduction and revenue enhancement to make the hospital more profitable
Documented a method for allocating costs among the various entities sharing services
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