Strategic Planning In Managed Care

In the world of healthcare medical technology and various forms of payments for that, technology changes quickly, so that the management of the medical facilities and insurance companies has to come up with a plan that will allow the company to survive. Therefore, strategic thinking must be done first, and then strategic planning occurs in order for strategic management to be placed throughout the company. Strategic planning is done periodically to ensure that the company is accomplishing its directional strategies, such as meeting the mission and vision statements (Ginter, Duncan, & Swayne, 2013, p. 14). Strategic management involves the supervision of the implementation of the directional strategies created from the strategic planning and
6). During the 1980s, strategic planning was more concerned with how to raise a profit because a fee-for-service was still the predominant form of payment (Zuckerman, 2011, p. 6). However, during the 1990s many medical facilities faced foreclosure and buyouts because of the rise of the managed care industry (Zuckerman, 2011, p. 6). More recently, the Affordable Health Care Act (ACA) has caused many healthcare organizations to reevaluate their strategic plans and missions statements, so that they may survive on making less of a profit while still offering a variety of medical services to the patient (Zuckerman, 2011, p. 7). For instance, in Michigan the Beaumont health system merged with the Oakwood and Botsford in anticipation of how severely the ACA would affect their profits (Greene, 2014). In another example of strategic planning the National Committee for Quality Assurance (NCQA) used to only a credit HMO programs, but now it has expanded and offers a seal of approval from the federal government for other health programs (Kongstvedt, 2016, p. 19). Strategic planning will continue to play a vital role in the healthcare industry because of the need to be distinct amongst other medical facilities, offer quality care at a reasonable price, and still be able to pull a profit from treatments that are done to the
Strategic planning is the backbone of the strategic management in the organization. Strategic management takes care of the overall organization by periodically checking the strategic planning of the organization to make sure that the planning is still in line with the directional strategies, which ensures the future of the company. Strategic management is more of a thought process then a physical tool, which helps to predict issues that will be important to the future of the healthcare company. Strategic management is a way of life and not just a temporary tool to satisfy the government industry