Future of Skilled Nursing Facilities: Medical Model vs. Social Model

Topics: Nursing home, Activities of daily living, Medicare and Medicaid Pages: 15 (4864 words) Published: January 19, 2011
While being employed in Corporate America for over 20 years and in the United States Air Force for over 10 years has been extremely valuable experience, I don’t feel like I’m fulfilling my purpose in life. After losing my grandmother 2.5 years ago, it finally dawned on me what my purpose is, and that is to care for our aging population. I am one of 65 grandchildren. My grandmother and I always had a special bond. She raised me for a big part of my childhood, and was more of a mother-figure to me. My grandmother resided with one of my aunts for the last 15 years of her life. As her health started to fail her, she became more and more dependent. My grandmother was always a very independent woman and the rock of our family. She had always been the caregiver in the family, now she was the one in need of care. I was very involved in her care during the last 10 years of her life. However, I was more involved in her quality-of-life efforts as oppose to her medical care. I remember on some days she would be so sad. She would always tell me that because she required so much assistance from my aunt and other relatives, she was made to feel as if she was burden to them. She would sometimes talk about going to a skilled-nursing facility, but because of the horrible stories that our family had heard and/or witnessed regarding the quality of care for the residents while working in some of those facilities. This paper will provide a strategic management analysis of the future of skilled nursing as it relates to the medical (traditional) model versus the social model.

I. Understanding the Organizational Setting
(The External Environment)

Exhibit 1a - Future Trends in the Macro Environment

The United States (U.S.) entered into a recession in December 2007 (Leonhardt). However, according to U.S. Treasury Secretary, Tim Geithner, “the U.S. economy is rebounding …, but the recovery will be slow and uneven” (http://english.chosun.com). Many different social, economic, and technological changes in the U.S. and around the world has affected the U.S. economy. The U.S. population is becoming older and more racially and ethnically diverse. The U.S. population will likely grow much more slowly, while the world population is expected to continue to grow at a rapid rate. World trade will almost certainly continue to expand rapidly if current trade policies and rates of economic growth are maintained, which in turn will make competition in the production of many goods and services increasingly global in scope (theusaonline.com). Technological progress will either remain consistent, or will most likely grow faster.

Over the next century, average standards of living in the United States will almost undoubtedly rise; therefore, people living at the end of the 21st century are likely to have more in terms of materials than people have today. Technological progress, business investments in capital goods, and people’s investments in greater education and training (which are often subsidized by government programs) will most like remain the primary reasons for the increase in living standards in the United States.

While the U.S. economy is to likely remain the world’s largest national economy for decades to come, the certainty that U.S. households will continue to enjoy the highest average standard of living among industrialized nations is questionable. However, most U.S. workers and families will most likely be better off than other economies, as the U.S. economy continues to grow and improve. An even more important problem for the U.S. economy in the next couple of decades is the unequal distribution of gain from growth in the economy (Madrick). In recent decades, the prosperity created by economic growth has not been as evenly distributed as was the wealth created in earlier periods. In addition, the demand for highly educated and trained workers has risen sharply in recent decades. Incomes...
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