Hospital Strategies for Surviving in a Changing Healthcare Environment
Becker's Hospital Review
Written by Bob Spoerl • Posted on May 21, 2012
In a session at the Becker’s Hospital Review annual meeting in Chicago on May 18, CEO of Objective Health Russ Richmond, MD, discussed hospital strategies for thriving in the current healthcare environment.
Before discussing helpful strategies, Dr. Richmond noted four pitfalls he sees with hospital strategies:
- Lack of a direction setting. Many hospitals only consider growth as a part of their strategy. But hospitals have to ask why they want to grow – not all hospitals need to grow to become successful.
- Situational analysis. Some hospitals lack necessary facts about competitive dynamics and market share when they formulate a strategy. There is too often a poor understanding of competitive dynamics.
- Insufficient option generation and lack of a portfolio. Not enough hospitals have portfolio options on the table.
- Execution risk. Dr. Richmond said he sometimes sees an overall lack of articulation with a strategic plan.
He said hospitals use “growth” as a dominant theme in strategic planning for several reasons: scale, protection, ego, integration and pricing.