Strategic Healthcare Management: Planning and Execution

679 Pages·2023·7.476 MB·English

by  Stephen L. Walston

THIRD EDITION
Strategic
Healthcare
Management
PLANNING AND EXECUTION
Stephen L. Walston
FFMM..iinndddd 11 1144//1122//2222 1122::1166 PPMM
HAP/AUPHA Editorial Board for Graduate Studies
Ning Lu, PhD, Chair
Governors State University
Julie Agris, PhD, FACHE
SUNY at Stony Brook
Robert I. Bonar, DHA
George Washington University
Kim C. Byas, Sr., PhD, FACHE
Union Institute & University
Lynn T. Downs, PhD, FACHE
University of the Incarnate Word
P. Shannon Elswick, FACHE
University of Central Florida
Cheryl J. Holden, DHS
University of Arkansas – Fort Smith
Diane M. Howard, PhD, FACHE
Rush University
Sandra S. Murdock, DrPH, FACHE
Texas Woman’s University
Kourtney Nieves, PhD, MSHS
University of Central Florida
Martha C. Riddell, DrPH
University of Kentucky
Gwyndolan L. Swain, DHA
Belmont Abbey College
Karen M. Volmar, JD, FACHE
University of North Carolina at Chapel Hill
Asa B. Wilson, PhD
Southeast Missouri State University
FFMM..iinndddd 22 1144//1122//2222 1122::1166 PPMM
Health Administration Press, Chicago, Illinois
Association of University Programs in Health Administration, Washington, DC
FFMM..iinndddd 33 1144//1122//2222 1122::1166 PPMM
Your board, staff, or clients may also benefit from this book’s insight. For information
on quantity discounts, contact the Health Administration Press Marketing Manager at
[phone].
This publication is intended to provide accurate and authoritative information in regard to
the subject matter covered. It is sold, or otherwise provided, with the understanding that the
publisher is not engaged in rendering professional services. If professional advice or other expert
assistance is required, the services of a competent professional should be sought.
The statements and opinions contained in this book are strictly those of the authors and do not
represent the official positions of the American College of Healthcare Executives or the Foundation
of the American College of Healthcare Executives.
Copyright © 2023 by the Foundation of the American College of Healthcare Executives.
Printed in the United States of America. All rights reserved. This book or parts thereof may
not be reproduced in any form without written permission of the publisher.
27 26 25 24 23 5 4 3 2 1
Library of Congress Cataloging-in-Publication Data
Library of Congress Cataloging-in-Publication Data is on file at the Library of Congress,
Washington, DC.
ISBN: 978-1-64055-365-1
The paper used in this publication meets the minimum requirements of American National
Standard for Information Sciences—Permanence of Paper for Printed Library Materials,
ANSI Z39.48-1984. ∞ ™
Manuscript editor: Kevin McLenithan; Cover designer: James Slate; Layout: Integra
Found an error or a typo? We want to know! Please e-mail it to [email protected], mentioning
the book’s title and putting “Book Error” in the subject line.
For photocopying and copyright information, please contact Copyright Clearance Center at
www.copyright.com or at [phone].
Health Administration Press Association of University Programs
A division of the Foundation of the American in Health Administration
College of Healthcare Executives 1730 Rhode Island Ave NW
300 S. Riverside Plaza, Suite 1900 Suite 810
Chicago, IL 60606-6698 Washington, DC 20036
[phone] [phone]
FFMM..iinndddd 44 1166//1122//2222 1111::4422 AAMM
BRIEF CONTENTS
Preface ....................................................................................................xiii
Competencies .............................................................................................xv
Acknowledgments ...................................................................................xxiii
Part I Introduction
Chapter 1. Strategy and Strategic Management ...................................3
Part II Core Concepts of Strategy
Chapter 2. Understanding Market Structure and Strategy .................27
Chapter 3. Business Models and Common Strategies ........................47
Chapter 4. Growth and Integration Strategies ...................................81
Chapter 5. Strategic Alliances .........................................................111
Part III Organizational Purpose
Chapter 6. Stakeholders, Values, Mission, and Vision ......................135
Part IV Understanding Organizational Position
Chapter 7. The External Environment and Strategy .......................163
Chapter 8. The Internal Environment and Strategy .........................195
Chapter 9. Healthcare Analytics and Strategic Management ............229
Chapter 10. Strategic Financial Analysis ............................................265
v
FFMM..iinndddd 55 1144//1122//2222 1122::1166 PPMM
vi Brief Contents
Part V Plans for Achieving Mission and Vision
Chapter 11. Development and Execution of a Strategic Plan .............297
Chapter 12. Business Plans and Strategic Management ......................331
Part VI Implementing Strategies
Chapter 13. Organizational Structure and Strategy ...........................343
Chapter 14. Strategic Change Management ......................................369
Chapter 15. Strategic Leadership ......................................................391
Part VII Monitoring Strategic Achievement
Chapter 16. Implementing, Monitoring, and Evaluating Strategy ......411
Chapter 17. Project Planning and Management ................................437
Case Studies ...........................................................................................459
Appendix ...............................................................................................541
Glossary .................................................................................................557
References .............................................................................................571
Index ....................................................................................................623
About the Author ....................................................................................653
FFMM..iinndddd 66 1144//1122//2222 1122::1166 PPMM
DETAILED CONTENTS
Preface ....................................................................................................xiii
Competencies .............................................................................................xv
Acknowledgments ...................................................................................xxiii
Part I Introduction
Chapter 1. Strategy and Strategic Management ...................................3
Learning Objectives ..........................................................3
History of Strategy ............................................................5
Strategy in Healthcare Today .............................................6
Why Study Healthcare Strategy and Strategic
Management? .............................................................10
Prospective and Emergent Strategies ................................14
Levels of Strategy ............................................................18
Text Overview .................................................................20
Chapter Questions ..........................................................22
Chapter Cases .................................................................22
Chapter Assignment ........................................................24
Part II Core Concepts of Strategy
Chapter 2. Understanding Market Structure and Strategy .................27
Learning Objectives ........................................................27
The Societal Environment ...............................................28
Market Structure .............................................................34
Measuring Market Structure ............................................39
Product Life Cycle ..........................................................40
Chapter Summary ...........................................................43
Chapter Questions ..........................................................43
Chapter Cases .................................................................44
Chapter Assignments .......................................................46
vii
FFMM..iinndddd 77 1144//1122//2222 1122::1166 PPMM
viii Detailed Contents
Chapter 3. Business Models and Common Strategies ........................47
Learning Objectives ........................................................47
Business Models ..............................................................48
Business Model Innovation and Adaptation .....................52
US Healthcare Business Model ........................................55
The Threat of Disruptive Innovation ...............................58
Generic Strategies ............................................................60
The Dynamics of Competitive Strategies ..........................70
Chapter Summary ...........................................................75
Chapter Questions ..........................................................76
Chapter Cases .................................................................77
Chapter Assignments .......................................................79
Chapter 4. Growth and Integration Strategies ...................................81
Learning Objectives ........................................................81
Growth Strategies ............................................................82
Vertical, Horizontal, and Diversified Expansion ...............86
Transfer Pricing ...............................................................90
Competition with Existing Customers .............................92
Unmatched Services and Incentives .................................93
Integration of Vertically Owned Structures ......................94
Virtual Vertical Integration ..............................................96
Chapter Summary .........................................................105
Chapter Questions ........................................................106
Chapter Cases ...............................................................107
Chapter Assignments .....................................................110
Chapter 5. Strategic Alliances ..........................................................111
Learning Objectives ......................................................111
Potential Benefits of Strategic Alliances ..........................113
Interdependencies and Strategic Alliances ......................119
Types of Alliances ..........................................................121
Management of Alliances ...............................................123
Creating a Successful Healthcare Alliance ......................127
Chapter Summary .........................................................128
Chapter Questions ........................................................129
Chapter Cases ...............................................................129
Chapter Assignments .....................................................132
FFMM..iinndddd 88 1144//1122//2222 1122::1166 PPMM
Detailed Contents ix
Part III Organizational Purpose
Chapter 6. Stakeholders, Values, Mission, and Vision ......................135
Learning Objectives ......................................................136
Stakeholders and Organizational Purpose ......................136
Strategic Intent .............................................................139
Chapter Summary .........................................................155
Chapter Questions ........................................................156
Chapter Cases ...............................................................156
Chapter Assignments .....................................................159
Part IV Understanding Organizational Position
Chapter 7. The External Environment and Strategy ........................163
Learning Objectives ......................................................163
Porter’s Five Forces Model ............................................165
Strategic Groups............................................................180
Driving Forces of the Industry .......................................183
Understanding External Market Data ............................189
Chapter Summary .........................................................189
Chapter Questions ........................................................190
Chapter Cases ...............................................................191
Chapter Assignments .....................................................193
Chapter 8. The Internal Environment and Strategy .........................195
Learning Objectives ......................................................196
Internal Environmental Analysis ....................................200
Use and Misuse of SWOT Analysis ................................209
TOWS Analysis .............................................................214
Value Chain ..................................................................215
Portfolio Analysis ..........................................................218
Chapter Summary .........................................................223
Chapter Questions ........................................................224
Chapter Cases ...............................................................225
Chapter Assignments .....................................................227
Chapter 9. Healthcare Analytics and Strategic Management ............229
Learning Objectives ......................................................229
History of Healthcare Analytics .....................................231
FFMM..iinndddd 99 1144//1122//2222 1122::1166 PPMM