Conduct a service area competitor analysis for a healthcare organization you have chosen. Report the results of a service area competitor analysis. Action Items Part 1:Conduct a
Learning Outcomes
- Conduct a service area competitor analysis for a healthcare organization you have chosen.
- Report the results of a service area competitor analysis.
Action Items
- Part 1:Conduct a service area competitor analysis for the organization that you identified in Corporate Strategic Goals (see attached file for this assignment). Parts 1 and 2 should be at least 6 pages in combined length. Part 1 should cover the following:
- Define the service categories
- Define the service area.
- Create a service area profile. This would include some of the current driving forces such as key competitors, governmental health policies, information systems and technologies; clinical and non-clinical workforce
.population demographics, local economic climate, etc. - Conduct a service area structure analysis which would include identifying the key locations and services for competitors.
- Map strategic groups which would include a visual illustration/map of the key competitor locations (healthcare organizations and physician groups).
- Synthesize analyses providing a brief summary of the most important parts/points of part 1.
- Part 2: Write a brief report to the organization's Board of Directors (do not actually send this to them) which you communicate the critical elements of the service area competitor analysis and include at least three recommendations to the Board of Directors based on your analysis. (Note: you do not need to formally cite references as in Part 1; however, you must include the references/sources that you used in an appendix, as noted below). Your report must include:
- Executive Summary
- Supporting narrative and data
- Conclusions
- Appendix of references/sources
- Prepare your assignment for submission:
- Parts 1 and 2 should be at least 6 pages in combined length
- Follow all applicable APA GuidelinesLinks to an external site.regarding in-text citations, list of cited references, and document formatting for Part 1 of this assignment. Failure to properly cite and reference sources constitutes plagiarism.
- The title page and reference list are not included in the page count for this paper.
- Proofread your assignment carefully. Improper English grammar, sentence structure, punctuation, or spelling will result in point deductions per rubric.
- Submit your assignment (both Part 1 and Part 2 in one document). Your work will automatically be checked by Turnitin.
Extra Resources:
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Critical Analysis on Trinity Health System External Environment and Strategic Management
Student Name
Course name and number
Professor name
October 1st, 2023
Critical Analysis on Trinity Health System’s External Environment and Strategic Management
The healthcare industry has experienced enormous changes, especially in the recent past. The paper will explore the different driving forces impacting healthcare organizations in Ohio, analyze the external environment and organizational levels, and develop the right strategic levels for each level.
Trinity Health System
Trinity Health System Trinity Health System is part of CommonSpirit Health, a nonprofit Catholic health system committed to improving people’s lives. The healthcare system has 150000 employees and 25000 physicians and practicing clinicians. The healthcare services are spread throughout Ohio, including Trinity East, Trinity West (Trinity Health, 2023).
I chose this organization because of its ability to embrace technology to reduce patient costs and improve healthcare and offers excellent healthcare services to people.
Driving Forces
Key Competitors
Trinity Health System has at least 251 competitors; however, these are the top ten competitors, including HCA, Tenet Healthcare, and Penn Medicine. For instance, HCA has a chain of multi-specialty hospitals with a growth score of 80%, while Trinity Health System has a score of 65% (Tracxn, 2023).
Governmental Health Policies
Trinity Health System policy aligns with government policy to ensure that patients have access to quality healthcare services and affordable costs, thus servicing a large pool of vulnerable communities (Trinity Health System, 2023).
Information Systems
Trinity Health System uses an information system that allows users and patients to access the organization’s portal. The portal, My Trinity Health Portal, allows users to access their health information regarding discharge instructions and allergies (Trinity Health Systems, 2023).
Technologies
Trinity Health System has invested in orthopedic and Sports Medicine to help in musculoskeletal care, regenerative medicine, and performance enhancement. The organization also plans to invest in musculoskeletal ultrasound units, including a Nitrous Oxide Sedation System and Coulter Cell Counter (Trinity Health Systems, 2023). These forms of technology will provide accurate information and improve patient outcomes.
Clinical and non-clinical workforce
Trinity Health has 27,000 physicians and clinicians. The organization also has a large pool of non-clinicians working as administrators, human resource managers, IT technicians and others (Trinity Health System, 2023).
Populations demographics
Trinity Health System in Ohio serves a large community with people with different income levels and a diversified culture. Most people live in poverty; however, the organization treats people without regard for the patient’s financial status (Trinity Health System, 2022).
Local economic climate
Trinity Health care is also facing the same challenge of the nursing shortage, which impacts the success of patient care. The organization developed the TogethertTeam, a three-person nursing team to manage patients (Advisory Board, 2023).
Analysis of External Environment
General Environment
It refers to the organizations and governments that generate legislative, social, and economic changes in the healthcare industry.
Government Services
For instance, the government introduced programs and health policies to reduce the burden of injury and improve healthcare. These programs include Medicare, and TRICARE for Life programs (DOD TRICARE) (Health Affairs, 2023).
Religious Institutions
Trinity Health Systems embraces the Catholic Faith to provide healthcare services to different communities as a canonical and civil responsibility (Trinity Health Systems, 2023).
Individuals/Customers
External customers in a healthcare organization include doctors and patients, while internal customers are nurses, staff, trainees, and departments. Healthcare organizations must understand the customer's needs and develop the right product to satisfy the customer (Jones & Bartlett, 2023). Trinity Health Systems in Ohio serves patients who are external customers based in Jefferson County.
Health Care System
Planning/Regulatory Organizations
Healthcare regulatory organizations are responsible for certifying healthcare facilities, overseeing and regulating. Examples of regulatory services include the Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) (Thomas, 2021).
Primary Care Providers
Primary care providers such as physicians are responsible for keeping the patient healthy (Blackwood Family Medicine, 2019). Other organizations include the Administration for Children and Families, which promotes the well-being of families and children, and the Administration for Community Living, which increases support and provides resources for older adults (U.S. Department of Health and Human Services, 2023).
Secondary Care Providers
Secondary healthcare providers provide resources for healthcare systems and include medical schools, health administration programs like Ohio State University, insurance companies such as Prudence, and pharmaceutical companies like Mckesson (Ginter et al., 2018).
Service Area
It refers to the surroundings of an organization where the organization gets most of its customers. In this segment, services rendered might be limited because of distance and time (Federal Trade Commission, 2023).
Competitors
Competitors in the healthcare industry play a crucial role in improving healthcare service, reducing costs, and encouraging innovation through technology. The Federal Trade Commission’s role is to prevent firms from engaging in anticompetitive behavior that harms consumers, including patients (Federal Trade Commission, 2023).
Business Organizations
Business organizations play a critical role in the healthcare industry by providing technological innovations and increasing patient care. These organizations also provide healthcare products that satisfy the customer and are driven by a customer mindset (Michigan State University, 2023).
Not-for-Profit Organizations
Not-for-profit organizations are crucial as they provide information and promote communities' well-being (Hasanagic, 2020). Examples of not-for-profit organizations in the healthcare industry are the World Health Organization and Water School.
Government Services
Strategic Corporate Goal(s)
This section will analyze the different levels in the organization and incorporate SMART goals for each level. Organizational levels include corporate, divisional, organizational, and unit.
Corporate Level
Trinity Health System aims to offer healthcare services to African and Asian countries in the next ten years. The goal is to invest in healthcare technology and employ qualified healthcare professionals. It is attainable to serve diverse customers (patients) through technology.
The organization will be considered relevant because of its services to underserved customers. The organization will reach its goal by December 2033. Using the external analysis, the goal is relevant because business organizations provide advanced technology that will improve the patient’s life.
Divisional Level
The goal is to deploy healthcare technology to improve home health services. The goal is to improve health services by 25%. It is attainable through training and offering smart devices for older patients. Caring for older adults through home health services is paramount because they have limited energy and need to live independently. The goal is to be achieved by June 2024. This goal is relevant because Trinity Health System believes in faith and spirituality and provides health care services to people.
Organizational Level
The specific goal is to reduce high expenditures in Trinity Medical Plaza expenditure. The goal is to reduce the hospital expenses by 15%. It is achievable because it reduces patient care quality and increases the burden on the patient. The company will have increased profit that will be used in other vital services. The overall budget for Trinity Medical Plaza will be reduced by the end of 2023 in December. This goal is relevant because government regulatory bodies oversee healthcare services to ensure patient safety.
Unit Level
The specific goal is to reduce errors in the surgical department due to high fatality rates and complications. The goal is to reduce the errors by 35%. It is achievable because of cutting-edge technology in the surgical field and trained surgeons. It is important to reduce errors to improve the organization’s reputation. The goal should be achieved by December 2024. This goal is justified because satisfying the customer (the patient) is paramount according to the external environment analysis.
Conclusion
The paper has reflected on Trinity Health System based on its worforce, customers, and the external environment regulating it. It is crucial that health care organizations work to satisfy the customer and invest in technology to improve patient outcome.
References
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The Strategic Management of Health Care Organizations, 8th Edition | Wiley. Wiley.com. https://www.wiley.com/en-us/The+Strategic+Management+of+Health+Care+Organizations%2C+8th+Edition-p-9781119349709
Advisory Board. (2023). Why Trinity Health describes itself as a “public trust” and what that means. Www.advisory.com. https://www.advisory.com/topics/strategy-planning-and-growth/2023/05/why-trinity-health-describes-itself-as-a-public-trust-and-what-that-means
Blackwood Family Medicine. (2019, July 17). The Importance of Primary Care Providers. Blackwood Family Medicine. https://www.beachfamilydoctors.com/news/the-importance-of-primary-care-providers/
Federal Trade Commission. (2023, June 11). Competition in the Health Care Marketplace. Federal Trade Commission. https://www.ftc.gov/advice-guidance/competition-guidance/industry-guidance/competition-health-care-marketplace
Hasanagic, A. (2020, June 9). 30 Organizations Defending the Right to Health. Human Rights Careers. https://www.humanrightscareers.com/issues/organizations-defending-the-right-to-health/
Health Affairs. (2023). Government Programs And Policies | Health Affairs. Www.healthaffairs.org.https://www.healthaffairs.org/topic/90#:~:text=In%20the%20US%2C%20the%20six
Jones, & Bartlett. (n.d.). ttp://samples.jbpub.com/9780763766214/66214_ch02_5263.pdf. Jones &Bartlett Publishers. Retrieved September 29, 2023, from ttp://samples.jbpub.com/9780763766214/66214_ch02_5263.pdf
Michigan State University. (2020). Why Healthcare Needs Business Leaders. Michiganstateuniversityonline.com. https://www.michiganstateuniversityonline.com/resources/healthcare-management/why-healthcare-needs-business-leaders/
Thomas, L. (2021, December 27). What is the Role of Regulatory Bodies in Healthcare? News-Medical.net. https://www.news-medical.net/health/What-is-the-Role-of-Regulatory-Bodies-in-Healthcare.aspx
Tracxn. (2023). Trinity Health – 251 Competitors and Alternatives – Tracxn. Tracxn.com. https://tracxn.com/d/companies/trinity-health/__q3Vb_ydFqSsQADKn-PS0q5ciLb1G-c9lE2s4BcktAD4/competitors#:~:text=The%20top%20competitors%20of%20Trinity%20Health%20include%20HCA%2C%20Adventist%20Health
Trinity Health System. (2023). Home. Trinity Health System. https://trinityhealth.com/
U.S. Depattrment of Heealth and Human Services. (2023, October 27). HHS Agencies & Offices. HHS.gov. https://www.hhs.gov/about/agencies/hhs-agencies-and-offices/index.html
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Chapter 3 Service Area Competitor Analysis
Why Service Area Competitor Analysis Is Important
As Bruce Henderson concluded, not all organizations competing in the same broad market are necessarily direct competitors; however, organizations with the same or similar strengths serving a particular market will be rivals – the more similar they are, the greater the rivalry. Diverse competitors may all do well in a single market by focusing on different market dimensions. Organizations that compete in several different markets may find that their competitors in one mar- ket are completely different from those in another market.
The amount of competition varies from market to market as well. Service area competitor analysis helps strategic managers structure their thinking to determine on what market dimensions they desire to compete, the specific organizations that are most like their own organization in a market segment, and what other
“Your most dangerous competitors are those most like you.”
—Bruce D. HenDerSOn, AMericAn enTrepreneur AnD fOunDer Of THe BOSTOn cOnSulTing grOup (Bcg)
Ginter, P. M., Swayne, L. E., & Duncan, W. J. (2018). The strategic management of health care organizations. John Wiley & Sons, Incorporated. Created from franklin-ebooks on 2023-10-06 19:41:50.
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80 StrAtegiC mAnAgement of HeAltH CAre orgAnizAtionS
products or services may be seen as effective replacements or substitutes for a given product or service. identifying direct competitors and understanding the nature of the market itself is essential.
in some markets, competition is quite genteel, whereas in others competition is quite fierce. understanding why competitive intensity in markets varies and what makes a market attractive is profoundly important for strategic managers. Organizational strategy is drawn to attractive markets.
Strategic thinking and structured processes for service area competitor analysis work together to help strategic managers accurately assess their markets (service areas) for their product or service, the nature of the competition, and the attrac- tiveness of the market. further, strategic thinking and its disciplined processes can determine the specific organizations that compete with each other in a given market. The strategy developed by most organizations rests on this analysis.
use the concepts in this chapter to assess and understand competitors and markets!
learning objectives
After completing the chapter you will be able to: 1. Describe the process of service area competitor analysis. Why is it important? 2. Examine the relationship between the general environment, the health care
system, and service area for identification of issues and competitors. 3. Explain the importance of a service area structure analysis for a health care
organization. 4. Develop critical factors for success for a product or service in a service area. 5. Identify strategic groups and map competitors’ strategies along important ser-
vice and market dimensions. 6. Assess likely competitor strategic responses. 7. Synthesize a service area competitor analysis into some strategic conclusions. 8. Validate strategic assumptions to reinitiate strategic thinking concerning the
service area and competitors.
Strategic Management Competency After completing this chapter you will be able to conduct a comprehensive service area competitor analysis for a health care organization.
Further Focus within External Analysis
external analysis involves strategic thinking and strategic planning, focusing on increasingly more specific issues. chapter 2 provided the fundamental approach and strategic thinking frameworks for organizing, scanning,
Ginter, P. M., Swayne, L. E., & Duncan, W. J. (2018). The strategic management of health care organizations. John Wiley & Sons, Incorporated. Created from franklin-ebooks on 2023-10-06 19:41:50.
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Chapter 3 ServiCe area Competitor analySiS 81
monitoring, forecasting, assessing, and mapping issues and trends in the general environment, health care system, and service area. Once these trends and issues have been identified and mapped, a more focused competitor analysis is required. A service area competitor analysis is a more specific process to understand the nature of competition, evaluate competitors, identify criti- cal success factors, and anticipate competitors’ strategic moves in a defined geographic area (neighborhood, city, state, united States, or in the world). Along with the economic, social/demographic, legislative/political, techno- logical, and competitive issues assessed in the general environment, health care system and service area, the service area competitor analysis will pro- vide an understanding of the competitive context in which the strategy of the organization will have to be successful.
clearly a new competitive marketplace is emerging in the health care system and competition is expected to increase over the next decade. As reimbursement incentives move to delivering value, outcomes data become more transparent, and consumers are asked to pay a greater portion of their health care costs, health care organizations will have to develop new, more competitive care-delivery mod- els.1 Health care organizations that attempt to avoid competing or deny industry changes currently underway will find their patients moving to other providers. Therefore, within the health care community there is an understanding that health care organizations must be positioned effectively vis-à-vis their competitors. competitor information is essential for selecting viable strategies that success- fully position the organization in the market. Many health care managers agree that an organized competitor intelligence system is necessary for survival. The system acts like a radar grid constantly monitoring consumer and competitor activity, filtering the raw information picked up by external and internal sources, processing it for strategic significance, and efficiently communicating intelligence to those who need it.2
A Process for Service Area Competitor Analysis
Service area competitor analysis is a process of understanding the market and identifying and evaluating competitors within that market. Together with the results of the general environment, health care system, and service area trends and issues, service area competition will be analyzed and the results synthesized into the strategic issues facing the organization. The synthesis is an explicit input into the formulation of the organization’s strategy. not every potential competitor in a service area is of concern because of targeting differences, posi- tioning differences, quality differences, pricing differences, and so on. The pro- cess for service area competitor analysis is illustrated in the strategic thinking map in exhibit 3–1. The conclusions will provide crucial information for strategy formulation.
Ginter, P. M., Swayne, L. E., & Duncan, W. J. (2018). The strategic management of health care organizations. John Wiley & Sons, Incorporated. Created from franklin-ebooks on 2023-10-06 19:41:50.
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82 StrAtegiC mAnAgement of HeAltH CAre orgAnizAtionS
An Application of Service Area Competitor Analysis
By employing an actual service category (plastic surgery) and service area (charlotte, north carolina), each step of the service area competitor analysis process will be illustrated. first, the general required actions of each step of the service area competitor analysis process will be examined and then the applica- tion of the actions for each of the steps will be demonstrated.
Step 1 – Review External Analysis of the General Environment, Health Care System, and Service Area
Step 2 – Conduct Service Area Structure Analysis
Step 3 – Conduct Competitor Analysis
Step 4 – Analyze the Critical Success Factors
Step 5 – Map Strategic Groups
Step 6 – Assess Likely Competitor Actions or Responses
Step 7 – Synthesize Analyses
EXHIBIT 3–1 Process for Service Area Competitor Analysis
Ginter, P. M., Swayne, L. E., & Duncan, W. J. (2018). The strategic management of health care organizations. John Wiley & Sons, Incorporated. Created from franklin-ebooks on 2023-10-06 19:41:50.
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Chapter 3 ServiCe area Competitor analySiS 83
As an overview of the service category and service area, plastic surgery repre- sents a highly competitive and low market share industry, especially for cosmetic procedures that are rarely covered by health insurance. reconstructive plastic surgery (required because of accidents and disfigurements, birth defects, ravages of disease, and so on) is often covered by insurance; however, reimbursement rates have been declining. Typically, a number of board-certified plastic surgeons have offices in any given service area. These physicians compete not only among themselves; but also against emergent niche providers who are often board certi- fied in a specialty other than plastic surgery – physicians in ophthalmology (eye), dermatology (skin), eenT (eye, ear, nose, and throat), dental (teeth and jaw), and OB/gYn (women’s reproductive system). in addition, laser centers and medi- spas are competition, seeking to capture the lucrative and less invasive sectors of the cosmetic plastic surgery market such as Botox®, injectables, laser peels, cool sculpting, and so on. for an overview of the plastic surgery service category see essentials for a Strategic Thinker 3–1, “What is the plastic Surgery Service category?”
ESSEnTIAlS For A STrATEgIC THInkEr 3–1
What is the Plastic Surgery Service Category?
Plastic surgery is a medical specialty with two major subspecialties: cosmetic plastic surgery and reconstructive plastic surgery. A simple definition of cosmetic plastic surgery is that it involves procedures to modify a person’s natural appearance and is generally (medically) non- essential. Reconstructive plastic surgery may be performed to lessen the physical signs of an accident, disease, or congenital defect, and may be necessary to sustain or improve health. Although cosmetic procedures are not covered by insurance, most reconstructive procedures are. In many states, legislation requires insurance companies to provide coverage for reconstruc- tive plastic surgery for congenital (birth) defects and breast reconstruction after mastectomies.
To become a plastic surgeon, one must earn an MD (Medical Doctor) degree from an accred- ited medical school or college, of which there are 126 in the United States. Most plastic sur- geons have residency and fellowships before
board certification. Members of the American Society of Plastic Surgeons (ASPS) are certified by the American Board of Plastic Surgery or the Royal College of Physicians and Surgeons of Canada. An ASPS Member Surgeon has at least six years of training and experience in surgery, with three years specifically in plastic surgery; is certified by the American Board of Plastic Surgery; operates only in accredited medical facilities; adheres to a strict code of ethics; fulfills continuing education requirements, including patient safety techniques; and works as a part- ner to achieve the patient’s goals.
The American Society for Aesthetic Plastic Surgery (ASAPS) is the leading referral source of board-certified plastic surgeons specializing in cosmetic procedures of the face and body. Active membership in the ASAPS is reserved for American Board of Plastic Surgery certified phy- sicians (or in Canada, physicians certified in plas- tic surgery by the Royal College of Physicians
Ginter, P. M., Swayne, L. E., & Duncan, W. J. (2018). The strategic management of health care organizations. John Wiley & Sons, Incorporated. Created from franklin-ebooks on 2023-10-06 19:41:50.
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84 StrAtegiC mAnAgement of HeAltH CAre orgAnizAtionS
and Surgeons of Canada), with wide experience in cosmetic surgery and demonstrated commit- ment to aesthetic surgery continuing education.
Plastic surgeons often establish solo prac- tices. Other arrangements include solo practices that share facilities, small group practices (with 2–5 physicians), medium multispecialty group practices (6–20 physicians), and large multispe- cialty group practices (more than 20 physicians). In addition, plastic surgeons may work in mili- tary and academic facilities (with and without private practice).
The majority of plastic surgeons do not offer “spa” services (e.g. wraps, facials, mas- sages) in conjunction with their medical prac- tices. Further, most of these doctors do not work in conjunction with medical spas where non-surgical procedures, such as injections and laser procedures, are performed. Plastic
surgeons generally consider medical spas to be less professional and potentially dangerous if someone other than the surgeon is performing procedures.
According to the American Society of Plastic Surgeons, the top five reconstructive procedures are tumor removal, laceration repair, maxillofa- cial surgery, scar revision, and hand surgery. The top five cosmetic plastic surgical procedures are breast augmentation, lipoplasty (liposuction), rhinoplasty (nose reshaping), blepharoplasty (cosmetic eyelid surgery), and rhytidectomy (facelift). The top five cosmetic minimally inva- sive procedures are Botulinum Toxin Type A (Botox®), soft tissue fillers, chemical peels, laser hair removal, and microdermabrasion.
Sources: ASPS and ASAPS websites; Association for American
Medical Colleges website. Accessed March 2017.
if a plastic surgeon were to consider establishing a practice in charlotte, north carolina, the completion of a service area competitor analysis would be essential to evaluate whether the area represents a potentially profitable location. cosmetic plastic surgery requires a reputation for excellent work that takes some time to establish; selecting the wrong service area could force relocation, causing the sur- geon to begin anew in establishing a reputation. Similarly, established competitors should periodically re-evaluate the competition in their service area
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