Analysis of Pleasant Bluffs Medical Centre

Provision of quality health care requires a proper evaluation of both the institution resources and the capabilities to sustain its employees. Notably, the Pleasant Bluffs medical centre has over the years developed mechanisms that would help in improving its overall efficiency in healthcare provision and fighting some of the chronic complications affecting its population (Richard Ivey School of Business Foundation, 2016). However, the organisation still faces different complexities including developing a proper mechanism that would not only benefit the patients and the hospital but also reduce the overall cost of treatment. Moreover, through launching the home-based hospital program, the health facility expected to increase its efficiency in service provision and allowing patients to choose environments that they feel contented around. As such, this research will analyse some of the essential aspects of the hospital by performing test including PESTEL, five forces, SWOT, and VRIO internal analysis.

Analysis

PESTEL Analysis

Political. Factors such as insurance mandates and consumer protection regulations have significantly affected the operations of the firm. The introduction of the affordable care act (ACA) and financial penalties by the centres for Medicare and Medicaid services, redesigned the strategies used by the entity.

Economic factors. Aspects such as the changing commercial features including the value for money has limited the financial capabilities of the institution. This, in turn, prompted the hospital to ration the number of patients admitted to helping them cut on their medical expenses.

Social factors. The hospital has to understand the changing demographics of the community and the various complications affecting them. Based on these statistics, they can formulate applicable methods. Equally, a section of the population believes that hospital admission is better than home-based care, therefore, limiting the hospital’s new campaign.

Technological factors. This entails the changing technology in the provision of quality care. The hospital has to purchase modern equipment’s to support home-based care program.

Environmental factors. The hospital records a high number of patients affected by related environmental complications including chronic heart failure and pneumonia.

Legal factors. The formulation of different laws including the Affordable Care Act has redefined Pleasant Bluffs operation methods.

Five Forces and SCP Model

Industrial rivalry. Pleasant Bluffs has over the years experienced an increase in the number of its competitors including Hopkins and Presbyterian Healthcare Services (PHS) that offer similar services

Power of customers. Patients in Pleasant Bluffs have a high bargaining power that influences the hospital’s methods of operation. The institution builds its strategic plans around the interests of its clients.

Impact of sellers. Sellers in the health industry include the medical centres and the insurance companies. The increase of these institutions has helped in reducing the overall cost of treatment and also enhanced the adoption of quality care methods.

Threat of new entrants. New entrants such as the John Hopkins Hospital and Presbyterian Healthcare Services (PHS) has led to the development of new and efficient methods of care provision. For instance, the former has successfully used an algorithm that would help them identify the practicability of the home-based care system.

Threats of substitutes. Substitutes in the healthcare industry include alternative methods of service provision and patient centred initiatives. John Hopkins has successfully used the algorithm in estimating the cost of treating certain complications. This gives them an upper hand in implementing possible strategies.

Structure, Conduct, Performance (SCP) Model

Structure. This framework analyses the structure, conduct and performance of the hospital. Notably, Pleasant Bluffs has an elaborate structure with the president as the head of the organisation. It also consists of different departments such as the emergency division that attend to various patients (Richard Ivey School of Business Foundation, 2016). Furthermore, the health facility operates in a highly competitive environment that limits percentage control of the market or the population.

Conduct. Pleasant bluff has responded to the increasing competition by devising strategies such as the home-based care to reduce the common effects. Moreover, the institution has expanded and diversified its operations by employing more physicians and offering medical training. The PI department has also introduced an annual quality planning process to help in reducing the number of wastes.

Performance. Pleasant bluff has a higher inpatient care cost that averages to $2200 per day. Moreover, it is operating at beyond capacity with approximately 15% of the daily patients being admitted. As such, the hospital records longer waiting times that may, in turn, increase the intensity of diseases affecting patients.

Internal Analysis (VRIO)

Resources and capabilities

Valuable

Rare

Inimitable

organised to exploit

Competitive advantage

Innovative ideas

Y

Y

Y

Y

Sustainable

Patient cantered

Y

Y

Y

Y

Sustainable

Proper planning

Y

N

N

Y

temporary

Table 1

Pleasant bluff has over the years developed innovative methods of improving the quality of service it offers to its population. For instance, it provides acute care, outpatient and medical education to both posts and undergraduates. Further, patient centred aspects are demonstrated by the institutional commitment to ensure every ill person chooses the environment they wish to receive treatment. Lastly, the firm suffers from poor planning of its activities that are depicted by extended waiting periods and the inability to accommodate all patients that require inpatient services.

SWOT Analysis

Strengths. The Pleasant bluff hospital has more than 5000 employees plus 1000 physicians that offer quality services to patients. Furthermore, it has a well-defined organisation structure that promotes easy decision making.

Weakness. The firm lacks proper planning methods that limit their effectiveness in strategy formulation and implementation.

Opportunities. The introduction of new technologies such as the algorithm of assessing cost can enable Pleasant bluff to examine expensed that might be incurred in other chronic diseases excluding the existing ones.

Threats. New hospitals such as Presbyterian and Hopkins that offer same and alternative services limit long-term survival of the firm.

Formulation

Formulation of proper strategies would require the management of the Pleasant bluff hospital to consider different aspects including setting both long and short-term objectives, assessing the environment, setting targets, developing departmental plans, conducting performance analysis, and choosing a start-up strategy. Additionally, the leadership should take into account the available resources that would be used to implement these aspects. Some of the strategies that should be implemented by the firm include employee motivation, faster operational techniques and cost analysis methods.

Implementation

Implementation requires putting the policies developed into practice. The Pleasant bluff hospital should ensure it develops regulations that guide the implementation process and to reduce the number of risks available. Equally, countermeasures or alternative measures should be designed to help reduce any likelihood of failing. For instance, reducing the waiting time of patients and promoting faster operational techniques should also have a backup plan that would support the developed one in case of an emergency.

Conclusion

Although Pleasant bluff is facing an increased level of competition and unfavourable external environment, it has promoted the provision of quality care to its patients. Strategies such as the home-based care program would enable the entity to offer better services to various patients regardless of their location. To succeed, the management should ensure it lays proper internal structure that would boost its approaches on the uncertain extrinsic features.

References

Richard Ivey School of Business Foundation. (2016). Pleasant Bluffs: Launching a Home-Based Hospital Program.