Strategic Management Healthcare

Strategic Management is vital to corporate level strategy because with strategy according to Charles Darwin’s Quote; “He speaks about the core concept of Strategic Management – which is responsive to change. For an organisation within the world as we know it today where there is no change strategic management is not necessary; however, for an organisation in an ever changing controversial world strategic management is essential. In retrospect to the healthcare industry, these organisations can adapt to the demands of its environment prospers and those organisations that are not capable of adapting become decreasingly irrelevant. By staying relevant is the key to success.

The rate of technological growth, social, economic, competitive and

The types and magnitude of change for which a healthcare organisation will have responsive comes into context with the following areas; legislative/ political/ economic, social/demographic. Technological and competitive. These healthcare changes are explained with retrospect to America and Boston Scientific.

Economic Changes

 Continued growth in the industry – healthcare by most measures is the largest U.S industry and non-governed employer.

 Procedure costs may be decreasing while total spend is increasing.

 Over 27.3million Americans were without healthcare insurance in 2016. However uninsured rate fell by 8.6% which is the first time in recent history, the rate dropped below

 Employer based insurance companies may diminish penalties for not providing insurance for employees are eliminated or are significantly less than the cost of health care increases.

Technological Changes

 Further growth in the adoption of electronic health records will provide more data to improve the quality of care and that will be used to determine payments for the hospital and physicians.

 Significant advances in medical information technology will be anticipated such as automation of based business processes, clinical information interfaces, data analysis and telehealth.

 New technologies will emerge in the areas of drug design, imaging minimally invasive surgery, genetic mapping and testing, gene therapy, vaccines, artificial blood and xenotransplantation (transplanting tissues and organs from animals into humans).

Competitive Changes

 The disintegrates of some of the healthcare networks can be expected. In 2016 Aetna and United Health two of the U.S largest insurance companies announced they could not sustain losses and were significantly reducing their participating in government healthcare