Presented by: Team B Orthopedic Service Line: Hip and Knee Surgery STRATEGIC PLANNING

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 surgeries  332,000 hip surgeries  By year 2040, there will be 80 million elderly  Increase elderly population will increase the need for hip and knee surgeries  Improves 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 need Reverence – respect and compassion for the dignity and diversity of life Integrity – inspiring trust through personal leadership

Values (continued) We are called to: Wisdom – integrating excellence and stewardship Creativity – courageous innovation Dedication – affirming the hope and joy of our ministry

SJHMC Hip and Knee Program Goals  Decrease length of stay  Increase patient and physician satisfaction  Decrease readmission rates  Improvement in the discharge planning process  Quality improvement  Improve market strategies

EXTERNAL ENVIRONMENT STRATEGIES External Issues Health Care Organizations are facing:  Legislative/Political  Economic Changes  Social/Demographic Changes  Technological Changes  Competitive Changes  Regulatory 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 Data as of Oct

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 Approach Underdeveloped marketing and advertising Lack of capital  Focused Factory Approach Seamless process for better patient experience  Weakness: Integration of Operational Strategies and Implementation

Hip and Knee Program  Fastest growing product  17% increase is predicted by the year 2021  Mostly availed by patients over 60  Mostly elective to increase quality of life  Patients 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)

COMPETITORS

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 StrengthsPoint 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. HYDY

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. HYDY

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 organization Step 2: Once the strategic goals are established, the governing board will be able to meet and frame directional strategies Step 3: Complete directional strategies Step 4: Comprehensive strategic thinking map Step 5: Alternative strategies Step 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 Excellence  Lags behind competitors for DRG 469 and 470  SJHMC’s physical environment and amenities are comparable and superior in some cases  Marketing and advertising is severely underdeveloped  Competing hospitals share many of the same medical staff; loyalty is fragmented  Patient 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 activity  Increase associate engagement and satisfaction  Encourage nursing certification  Streamline processes from admission to discharge

ADDENDUM A  Maintain and enhance the programs  Critical success factor is product competitiveness Action Plan:  Promote ancillary services/amenities  Integrate holistic modalities  Introduce home care reps during hospitalization

ADDENDUM A (continued)  Increase the market share  Critical success factor is positive word of mouth advertising Action Plan:  Nursing and or physician staff to provide community education and opportunities  Publish articles or patient stories in church flyers or community papers  Increase staff participation in community events such as Arthritis walks or senior expos

ADDENDUM A (continued)  Identify as a Center of Excellence  Critical success factor is financial strength Action Plan:  Continue to utilize and purchase technologically advanced equipment  Provide continuing education in practice advancements  Offer incentive for nurses to obtain orthopedic certification  Obtain Joint Commission specialty certification

SUMMARY/CONCLUSION  SJHMC has the potential to become a leader in the market  Requires the organization to take a more competitive position  As market share increases, revenue will follow  Increase revenue will also allow us to remain competitive and ahead of the competition

References Center for Disease Control and Prevention. Retrieved on May 18, Grundy, P. (2013). Interview Reflection. Medicare. Southeast Michigan Council of Governments. St. John Providence Health System website. 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 GRUNDY AMY TOMAN SIMONETTE ELGERT BROOK GRZADZINSKI JENNA GODFRYD