Strategic assessment and organizational weaknesses in healthcare management

Health Care Strategic Planning

Over the last several years, the health care industry has been facing a number of different challenges. Part of the reason for this, is because of changes in demand have meant that costs have been increasing exponentially. A good example of this can be seen with a study that was conducted by the Kaiser Foundation. They found that health care prices have risen by 47% since 2005. (Abelson, 2010) This is problematic, because it means that a variety of health care organizations are facing a number of different challenges.

In the case of California Hospital Medical Center, they have been dealing with similar issues. To fully understand the overall scope of these problems requires examining the various weaknesses facing the facility. This will be accomplished by looking at: strategic planning, operations and human resource management. Once this takes place, it will provide specific insights about what are the most pressing issues facing the hospital.

The Weaknesses that are Affecting California Hospital Medical Center

There are a number of different weaknesses that will have an impact on the facility going forward. The most notable include: a rigid management structure, increasing expenses associated with heavy competition and the large amounts of employee turnover. These different elements are important, because they will work together to have an impact on the quality of care that is being provided and the overall profit margins. If left unchecked, the combination of these factors will cause the economic viability of the institution to be brought into the question. This is the point, that the hospital can face the possibility of closure. As a result, management needs to take drastic action to address these issues.

The Rigid Management Structure

The conservative management structure means, that California Hospital Medical Center will have trouble adapting to the changes that are taking place in the industry. This is because; there are too many bureaucratic procedures that prevent administrators from making adjustments. Over the course of time, this will cause costs to increase and it will result in a reduction in efficiency.

Heavy Competition

Heavy competition is having an adverse impact on the hospital by causing many patients to seek out treatment options elsewhere. This is particularly problematic for California Hospital Medical Center. What is happening is this has caused demand, for many of the different procedures to decline. At the same time, the lower amounts of customers have directly increased capital expenditure purchases. As, this reduces: the profit margins and it is directly having an impact on the costs that are associated with the delivery of various health care solutions. This is having an effect on: the profit margins of the hospital and their ability to adjust to changes in the industry. Over the course of time, this has made the hospital less competitive.

Large Amounts of Employee Turnover

The large number of employees leaving the company is troubling. The reason why, is because this is a sign that the quality of care that is being provided in declining. What normally happens is staff members, will often become frustrated with: health care environments that are inefficient and where management has an attitude of indifference. This is problematic, because it can spread through the organization like cancer by: eating away at the fundamentals that made the facility great.

Once this occurs, it will have an impact on: the costs, efficiency and profitability of the hospital. This is the point that this could undermine the reputation of facility and it could have an impact on the brand. When this takes place, it is a sign that many hospitals are falling into a downward spiral of: declining quality of care and increasing costs. At which point, it only becomes a matter of time until: some kind of major restructuring must occur or the facility will go into receivership. This is when it will be difficult, to address these issues, due to the fact that their image and reputation have been significantly damaged.

Clearly, there are a number of pressing issues that are affecting California Hospital Medical Center. Some of the most notable include: a rigid management structure, increasing expenses associated with heavy competition and the large amounts of employee turnover. These different elements are important, because they are indicating that the facility is wrestling with major issues that could have an impact on its long-term economic viability.