Organization Overview
HCM FPX 5314 Assessment 1 Bismarck Evangelical Hospital, established in 1902 in Bismarck, North Dakota, was renovated comprehensively in 1916 and became a contemporary hospital with 58 beds. With the increasing population, the hospital shifted its focus to serve the underprivileged community. Later, the facility renamed itself Sanford Medical Center Bismarck, with a newly constructed 217-bed hospital. Sanford Health’s network today includes a Level II trauma center, seven primary care clinics, three urgent care clinics, four specialty clinics, three long-term care facilities, three kidney dialysis units, three occupational health clinics, a health home agency, and one independent living center. Providing care to an expanding and diverse population driven by western North Dakota’s oil boom, Sanford Health Bismarck employs more than 3,600 people, including 260 physicians and advanced practitioners. Their purpose is to improve human life with extraordinary care, spiritual growth, innovation, and discovery. Sanford Health aims to foster diversity and inclusivity, as reflected in the growth in its patient and employee base.
Strategic Initiative Analysis
Access to Healthcare
Access to care is the “timely use of personal health services to achieve the best health outcomes.” It is a foundation of physical and mental well-being and key to healthcare organization success. Health insurance plays an important role in ensuring access. The uninsured are likely to postpone medical treatment due to cost. Sanford Bismarck Medical Center has put in place several measures for enhancing access to healthcare. Then, the organization partners with a business that helps underinsured patients acquire Medicaid benefits based on the income level of the patient and provides other monetary options to the patient who does not qualify. Other financial programs of assistance are also available to help pay or mitigate outstanding medical bills.
The second is the establishment of urgent care clinics, which are more affordable care and avoid costly trips to emergency rooms. The typical urgent care visit is approximately $170, whereas a typical emergency room visit is about $2,000 (Kantor, 2019). Sanford Bismarck is expanding these urgent care clinics into rural communities to bring more access to affordable healthcare. The third strategy emphasizes effective patient-provider communication to ensure continuity of care and trust building. Effective communication is essential in achieving optimal health outcomes (Sanford Medical Center Bismarck, 2019).
Quality Services
HCM FPX 5314 Assessment 1 Sanford Health provides numerous healthcare services, but there is also a need for quality improvement in the services. There are four committees that act to enhance patient services quality. The Physician Quality Committee establishes policy and oversees service standards. The Pharmacy and Therapeutics Committee educates physicians and pharmacists regarding the latest in prescription information. The Health Plan Quality Improvement Committee reviews issues influencing patient care and amends policies as necessary. Lastly, the Credentialing Committee evaluates health care providers in the Sanford Health Plan network, addressing any issues of quality that arise. They work together to increase the quality of patient care offered at Sanford Health Bismarck (Sanford Medical Center Bismarck, 2019).
Cost-Effectiveness
Sanford Health, the largest rural healthcare provider in the country, has been hit hard by Medicare reimbursement cuts. Medicare provided 46% of gross revenues for rural hospitals in 2016, and so these reductions have been especially successful. Reduced reimbursement levels have created higher healthcare costs and reduced income. Furthermore, changing government policies only adds to efforts to be cost-effective (LaPointe, 2018). Despite all these hindrances, Sanford HeaSandford Health provides diverse healthcare services, but quality of services must be improved too. There are four committees which function to enhance patient service quality. The Physician Quality Committee sets policy and oversees standards of services. The Pharmacy and Therapeutics Committee educates physicians and pharmacists regarding the latest prescription data. The Health Plan Quality Improvement Committee investigates matters relating to patient care and updates policies where necessary. Last but not least, the Credentialing Committee determines healthcare providers in the Sanford Health Plan network, addressing any quality issues that arise. These committees conduct their work in partnership to improve the quality of patient care delivered at Sanford Health Bismarck (Sanford Medical Center Bismarck, 2019).lth Bismarck delivers both inpatient and outpatient care at rates below the national average, without compromising quality. Under the Commission on Cancer program, Sanford Health tracks clinical data, scoring nationally on eight of ten performance measures, showing the hospital’s commitment to high-quality, value-based care.
Barriers to Access, Quality Services, and Cost-Effectiveness
Multiple barriers hinder achieving healthcare access, quality, and cost-effectiveness. They include high healthcare costs, being uninsured, suboptimal services, geographic remoteness, delayed care, and non-adherent patient participation. High healthcare costs, new government programs, reimbursement decreases, and insurance reforms also contribute to making matters worse. The barriers can contribute to delayed care, patient worry, and augmented medical costs (Access to Health Services, n.d.). Overcoming these challenges is crucial to Sanford Health Bismarck if it is to achieve its strategic goals and make healthcare services accessible, of quality, and affordable.
Evaluation of the Internal Structure of Sanford Health Bismarck
A general evaluation of Sanford Health Bismarck’s internal structure is crucial for its long-term success. Using SWOT and VRIO analysis helps in the assessment of the organizational operating structure. Through the SWOT, a number of strengths are identified: highly skilled staff, affordable high-quality care, technology investment, and enhanced health care access. Weaknesses include an old building, inconsistent delivery of care, and nurse deficits. Avenues for improvement are to enhance access to care, enhance communication, and form alliances with other health care providers. Threats include new entrants, budget cuts, and increasing demand for expensive medical equipment.
The VRIO analysis determines Sanford Health’s value-based philosophy of health care and its uniqueness as the largest rural health care system. These traits make the organization difficult to replicate, which in turn enhances its competitive advantage.
Internal Structure Driving Results from a Strategic and Operational Perspective
Sanford Health Bismarck’s internal structure supports the company’s strategic goals. Effective communication among disciplines ensures well-rounded patient care, ensuring better outcomes and the company’s purpose. Strategic goals are translated into realistic projects, such as increased access to health care and increased patient education. Operationally, Sanford Health Bismarck’s day-to-day activities—finance, logistics, and delivery of services—are structured to enable long-term strategic goals. Optimizing operational effectiveness allows the company to deliver high-quality, affordable care.
Recommendations
Organizational alignment with customer-outcome-focused outcomes is critical for the creation of a collaborative setting. Collaboration enhances leadership development, critical thinking, and relationship development, which enhance organizational productivity (Gaskell, 2017). A customer-centric strategy that focuses on value-based care guarantees that Sanford Health Bismarck addresses patient needs while providing high-quality care and operational efficiency. Incorporation of innovation and technology will also improve service delivery and bring new opportunities for the organization (Craig, 2018).
Value-Based Purchasing Models and Shared Risk Models
The Centers for Medicare & Medicaid Services (CMS) are driving transformation of fee-for-service to value-based care aimed at improving healthcare quality while controlling costs. Value-based purchasing models reward quality and penalize non-compliance in four domains: patient experience, safety, clinical care, and cost savings (Brown, 2018). Risk sharing models, on which insurers divide financial risk with providers, show potential to bring down cost while improving patient results but could blow up in the insurers’ faces if providers do not meet cost and quality metrics (LaPointe, 2019).
Conclusion
Sanford Health Bismarck’s strategic initiatives reflect the fact that healthcare organizations must adapt in an environment of change. Emphasizing value-based care, expanding patient access, and overcoming barriers to quality and cost-effective care, the organization is well situated for long-term success.
References
Access to Health Services. (n.d.). U.S. Department of Health and Human Services. Retrieved from https://www.onetonline.org/
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HCM FPX 5314 Assessment 1 Aligning Strategic Initiatives to Goals
Kantor, J. (2019). The costs of emergency room visits vs. urgent care centers. Healthcare Economics, 34(5), 101-110.
LaPointe, J. (2018). The impact of Medicare reimbursement cuts on rural hospitals. Healthcare Management Review, 43(3), 215-225.
LaPointe, J. (2019). Evaluating shared risk models in healthcare. Journal of Health Economics, 42(2), 215-224.
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Rothaermel, F. T. (2017). Strategic management. McGraw-Hill Education.
Sanford Medical Center Bismarck. (2019). Annual report. Sanford Health
