Orthopedic Service Line: Hip and Knee Surgery STRATEGIC PLANNING

1. Presented by: Team B Orthopedic Service Line: Hip and Knee SurgerySTRATEGIC PLANNING

2. Background and overview

3. BACKGROUND AND OVERVIEW • Healthcare organizations have to be strategic in order to gain the competitive edge • SJHMC has 5,036 employees and 1,300 medical staff • SJHMC is one of the nation’s top 100 hospitals including one of the top 15 teaching hospitals • SJHMC has many specialties including orthopedic programs • Development of strategic plan is critical for success

4. BACKGROUND AND OVERVIEW (continued) • There are 51.4 million inpatient surgeries done each year • 719,000 knee surgeries • 332,000 hip surgeries • By year 2040, there will be 80 million elderly • Increase elderly population will increase the need for hip and knee surgeries • Improves quality of life and risks

5. DIRECTIONAL STRATEGIES • Guides an organization as it grows and develops • Includes and organization’s Mission, Vision, Values and Goals

6. St. John Providence Health System Mission St. John Providence Health System, as a Catholic health ministry, is committed to providing spiritually centered, holistic care which sustains and improves the health of individuals in the communities we serve, with special attention to the poor and vulnerable

7. Vision Together, we deliver the highest quality patient care experience, everyday, everywhere, for everyone

8. Values We are called to: Service of the Poor – generosity of spirit, especially for persons most in need Reverence – respect and compassion for the dignity and diversity of life Integrity – inspiring trust through personal leadership

9. Values (continued) We are called to: Wisdom – integrating excellence and stewardship Creativity – courageous innovation Dedication – affirming the hope and joy of our ministry

10. SJHMC Hip and Knee Program Goals • Decrease length of stay • Increase patient and physician satisfaction • Decrease readmission rates • Improvement in the discharge planning process • Quality improvement • Improve market strategies

11. EXTERNAL ENVIRONMENT STRATEGIES External Issues Health Care Organizations are facing: • Legislative/Political • Economic Changes • Social/Demographic Changes • Technological Changes • Competitive Changes • Regulatory Changes

12. Economic Changes • Increasing cost of health care • Decreasing cost of reimbursement • Increasing number of uninsured • National and global economic downturn

13. U.S. Census Bureau Data as of Oct 2012. www.statisticsbrain.com

14. Technological Changes • Rapid increase in technological advancement • Acquisition of Makoplasty – a robotic device • Upgrade from Quadruple Aims Model to C-Aims Model – measures outcomes

15. EXTERNAL APPROACH ??? • Reactive Approach • Underdeveloped marketing and advertising • Lack of capital • Focused Factory Approach • Seamless process for better patient experience • Weakness: Integration of Operational Strategies and Implementation

16. Hip and Knee Program • Fastest growing product • 17% increase is predicted by the year 2021 • Mostly availed by patients over 60 • Mostly elective to increase quality of life • Patients over 60 has some health care coverage

17. SERVICE AREA COMPETITOR ANALYSIS • SJHMC’s service area includes: St. Clair, Macomb, Oakland, Wayne, Lapeer, Genesee, Livingston and Washtenaw • Service area was identified because of its location to the SJPHS and the competitors were determined based on the location, population and service brand of the orthopedic field

18. SERVICE AREA COMPETITOR ANALYSIS (continued)

19. COMPETITORS

20. INTERNAL ENVIRONMENT ANALYSIS –SERVICE DELIVERY

21. INTERNAL ENVIRONMENTAL ANALYSIS- SERVICE DELIVERY (continued)

22. INTERNAL ENVIRONMENT ANALYSIS – SERVICE DELIVERY (continued)

23. INTERNAL ENVIRONMENTAL ANALYSIS – COMPETITIVE RELEVANCE (STRENGTHS)

24. INTERNAL ENVIRONMENT ANALYSIS – COMPETITIVE RELEVANCE (WEAKNESSES)

25. Strategy formulation and evaluation

26. STRATEGIC FORMATION OVERVIEW Step 1: The initial component is to generate strategic goals from the mission, vision and values of the organization Step 2: Once the strategic goals are established, the governing board will be able to meet and frame directional strategies Step 3: Complete directional strategies Step 4: Comprehensive strategic thinking map Step 5: Alternative strategies Step 6: Evaluation

27. ADAPTIVE STRATEGY Maintenance of Scope with focus on enhancement

28. How the Strategy is Completed • Process Improvement • Increasing Quality • Decreasing Cost • Increasing Clinical Results

29. Methods to Evaluate Strategy TOWS Approach – (threats, opportunities, weaknesses, strengths SPACE Analysis – (strategic position and action evaluation)

30. MARKET-ENTRY STRATEGY • It is the means for accomplishing the adaptive strategy • Strategy must be linked to chosen adaptive strategy • Both drive the planning and implementation

31. CHOSEN STRATEGY • Reconfiguring the Value Chain Strategy • Changing the sequence of activities they perform • Changing the value delivered to the customer • Unit renovation • Addition of spa and gym • Hair and nail services/massage • Leaner process of the whole admission-discharge experience

32. STRATEGIC POSTURE- SPACE MATRIX

33. STRATEGIC POSITION • Escaped focus as Center of Excellence • Lags behind competitors for DRG 469 and 470 • SJHMC’s physical environment and amenities are comparable and superior in some cases • Marketing and advertising is severely underdeveloped • Competing hospitals share many of the same medical staff; loyalty is fragmented • Patient satisfaction scores are comparable

34. STRATEGIC POSITION (continued) • Focus on initiative to increase customer and physician satisfaction and loyalty • Collaborate with physicians on improvement initiatives • Increase community involvement activity • Increase associate engagement and satisfaction • Encourage nursing certification • Streamline processes from admission to discharge

35. ADDENDUM A • Maintain and enhance the programs • Critical success factor is product competitiveness Action Plan: • Promote ancillary services/amenities • Integrate holistic modalities • Introduce home care reps during hospitalization

36. ADDENDUM A (continued) • Increase the market share • Critical success factor is positive word of mouth advertising Action Plan: • Nursing and or physician staff to provide community education and opportunities • Publish articles or patient stories in church flyers or community papers • Increase staff participation in community events such as Arthritis walks or senior expos

37. ADDENDUM A (continued) • Identify as a Center of Excellence • Critical success factor is financial strength Action Plan: • Continue to utilize and purchase technologically advanced equipment • Provide continuing education in practice advancements • Offer incentive for nurses to obtain orthopedic certification • Obtain Joint Commission specialty certification

38. SUMMARY/CONCLUSION SJHMC has the potential to become a leader in the market Requires the organization to take a more competitive position As market share increases, revenue will follow Increase revenue will also allow us to remain competitive and ahead of the competition

39. References Center for Disease Control and Prevention. Retrieved on May 18, 2013. www.cdc.gov. Grundy, P. (2013). Interview Reflection. Medicare. www.medicare.gov Southeast Michigan Council of Governments. www.semcog.org St. John Providence Health System website. www.stjohnprovidence.org Swayne, L., Duncan, J., & Ginter, P. (2008). Strategic management of health care organizations. San Francisco, CA: Jossey- Bass.

40. QUESTIONS???COMMENTS?? Thank you for your time.

41. THANK YOU FOR YOUR TIMETEAM B MEMBERS:PAULA GRUNDYAMY TOMANSIMONETTE ELGERTBROOK GRZADZINSKIJENNA GODFRYD