Assignment business Level strategy 1
June 25, 2018
In today’s changing healthcare environment, hospitals have to find business level strategies as part of their transformation to a value-based system to manage the different disease states in our population. Many healthcare organizations like, Rochester Regional Health (RRH) are focusing on preventive care to help people in the community lead healthier lives; while at the same time it will reduce the overall health care costs. I will discuss the business level strategy that RRH used, and also discuss the tradeoffs they made to gain desirable outcomes with their strategy.
Competition in the healthcare industry is very prevalent, while the cost is spiraling out of control and focusing on preventative health care is one way to control the healthcare costs. Therefore, it would likely cost less for an organization to focus on preventative measures than treatment. Intervention by RRH healthcare organizations and practitioners at an early stage will help to differentiate our hospital for the competition in our area.
Cardiovascular disease is one of the most misdiagnosed diseases among many Americans. In most cases, when some already had a heart attack or stroke, then they are diagnosed with the disease. According to health metrics, “in 2015, 41.5 percent (102.7 million)
of the U.S. population had at least one cardiovascular disease condition.”1 When you look at RRH business level strategy, you will find that they have differentiated by having all of their
practitioners, both on-site and off-site focusing on cholesterol and preventable cardiovascular issues. Furthermore, especially by age 50 years, a person chances for a cardiovascular event happening more than double. RRH has implemented, that all of their practitioners in the community screen everyone from the age of 50 years and also those younger with a family history of cardiovascular diseases (CVD). A blood test that test for high levels of c-reactive protein and an electrocardiogram (ECG) would be done for every individual 50 years or older and those with a family history for CVD.
On the other hand, having all of the RRH practitioners focus on preventative care for the heart, this will decrease cardiovascular event by 45% for our community in the Rochester area. As a result, this will save RRH potentially 100 million yearly in costs for treatment and re-admission. American spent $555 billion on CVD cost in 2016 alone, and this cost will continue to increase (healthmetrics, 2017). By RRH, focusing on this value-added service; this strategy will help us at RRH to be a pioneer in the preventative care area for the heart. By using differentiation model, we at RRH can capture a lot of the long-term costs associated with CVD and profit from this.
The average patient with a cardiovascular event will spend approximately 5 to 7 days at RRH facilities and readmitted at least once in less than 30 days. Therefore, RRH has been capturing
at-risk population before CVD progression begins and working on preventative care to prevent hospitalization, which will, in turn, prevent increased costs. As a result, RRH will receive more money from both the federal and state for keeping the patient’s in our community out of the hospital by focusing on preventable care for the heart. Another business level strategy is, stressing the importance of yearly cholesterol screening will help to determine if someone has CVD or at risk for developing CVD. Our goal is to help people to live healthier lives and prevent hospitalization. In turn, offering this preventative service will help us to create a differentiation in the healthcare marketplace, and with this strategy, it will be cost saving to RRH.
Currently, the trade-off is an excellent accomplishment for RRH, it took a lot of planning and meant that RRH lost revenues initially, by the implementation of a higher number of preventative care locations. This initiative took prescribers and practitioners additional time to train their staff members. The second trade-off came when Sands-Constellation donated $250 million for the opening of a new heart institute called Sands-Constellation heart institute. Opening up this new institute will enable RRH to accomplish more specialization and training in the different areas of cardiovascular disease. This additional 200-bed unit will allow resident cardiologist gain knowledge into the different performance of noninvasive and invasive procedures. Doctors from cardiology, vascular surgery, and cardiac surgery will all work together as a collaborative team and provide complete individualized treatment. This will also
help RRH to become one of the well premier heart institutes close to home, with a focus on preventative care for the heart. Therefore, we will be the region’s academic heart institute with high standards, ensure the best results and treatments for the patients’ in our community and surrounding areas. Besides, our doctors will be experts in the latest technological therapies and advancements for everyone. Also, we would have gone from fifteen to forty board-certified cardiologists, the most in the region.
The third tradeoff is, we would be the leader in clinical research. As a result of, the research on devices and advancement in heart care at RRH, these will be used around the world. Patients in our community would be able to get enrolled in clinical trials helping to improve lives. The research being done at RRH will help cardiologist research fellows better understand the mechanisms of the heart and advance our knowledge of heart disease. Being a leader in clinical research, RRH can provide the best service to the community; while striving for more excellent service for tomorrow.
RRH has positioned itself with the differentiation approach to provide preventative care for everyone in the community and surrounding areas. At the same time, RRH is making sure that we remain competitive in the healthcare industry, by opening the 200-bed unit at Sands-Constellation institute. The potential benefit to the community would be a total of forty cardiovascular specialists, which will result in better overall services and preventative screening.
1. Https:// healthmetrics.heart.org>2017/10