HCS 499 Benchmark Assignment—SWOT Analysis Paper

HCS 499 Benchmark Assignment—SWOT Analysis Paper

SWOT Analysis

Based on review of the performance analysis of Stevens District Hospital, consider what you perceive to be the strengths, weaknesses, opportunities and threats for this hospital.

· Strengths and weaknesses are traits internal to the hospital, i.e. strong physician loyalty to hospital, aging building, and availability of financial resources.

· Opportunities and threats are external to the hospital, such as a mall facility available for lease or a competitor hospital opening two physician practices in your market. HCS 499 Benchmark Assignment—SWOT Analysis Paper

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SWOT Analysis

Review the SWOT Analysis PowerPoint® prior to completing this assignment.

Based on the review of the Stevens District Hospital strategic planning scenario, conduct a SWOT analysis to generate a list of perceived strengths, weaknesses, opportunities, and threats for the hospital.

· Strengths and weaknesses are traits internal to the hospital (i.e., strong physician loyalty to hospital, aging building, and availability of financial resources).

· Opportunities and threats are external to the hospital, such as a mall facility available for lease or a competitor hospital opening two physician practices in your market. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Write a 700- to 1,050-word analysis that incorporates the key components of a SWOT analysis for the scenario described in Week One to generate a list of perceived strengths, weaknesses, opportunities, and threats. The analysis will include the following:

· Analyze the purpose of conducting the analysis in the context of the scenario.

· Analyze the limitations and advantages of conducting a SWOT analysis on your own (vs. with a group of stakeholders).

· Use the table provided to record your analysis of the information from the strategic planning scenario and generate two factors for each of the SWOT categories (strengths, weaknesses, opportunities, and threats). HCS 499 Benchmark Assignment—SWOT Analysis Paper

Cite at least 1 peer-reviewed, scholarly, or similar references to support your assignment.

Click the Assignment Files tab to submit your assignment.

Table 1: SWOT Analysis

Analysis of existing information from Stevens District Hospital strategic planning scenario Perceived strength (internal)
Analysis of existing information from Stevens District Hospital strategic planning scenario Perceived strength (internal)
Analysis of existing information from Stevens District Hospital strategic planning scenario Perceived weakness (internal)
Analysis of existing information from Stevens District Hospital strategic planning scenario Perceived weakness (internal)
Analysis of existing information from Stevens District Hospital strategic planning scenario Perceived opportunity (external)
Analysis of existing information from Stevens District Hospital strategic planning scenario Perceived opportunity (external)

Analysis of existing information from Stevens District Hospital strategic planning scenario Perceived threat (external)
Analysis of existing information from Stevens District Hospital strategic planning scenario Perceived threat (external)

Background

Stevens District Hospital is a 162-bed acute care hospital that is qualified as a not for profit facility. The hospital was originally a county-owned facility and its status was transferred to an independent facility three years ago. The hospital receives no external funding from government agencies for operations. The hospital is accredited by The Joint Commission and received reaccreditation during their triannual survey last year. The hospital has an aggressive quality management program and a low volume of medical malpractice claims. The hospital is located in Jefferson City, which is a city of 50,000 with 80,000 in the regional market. The hospital provides a general range of acute care services, including medical/surgical, rehab, and emergency care. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Current Performance Analysis

Mission and Vision

Our mission: To improve health by providing high-quality care, a comprehensive range of services, and exceptional service.

Our vision: Stevens District Hospital and its affiliates will be the health care provider of choice for physicians and patients. Our five year vision is to create a large, multispecialty physician practice system that would include at least six family practice physicians and specialists in cardiology, oncology, and women’s services. Currently, the hospital employs three family practice physicians, one obstetrician, one medical oncologist, and one non-invasive cardiologist. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Previous Strategic Plan Review

Goal Accomplishments
Increase market share by recruiting three family practice physicians. The hospital was able to recruit only one family practice physician to increase primary care market this past year. The limited number of state medical school graduates makes local recruitment difficult.
Improve quality HCAPS scores in all six criteria to a baseline of the 85th percentile. The hospital improved HCAPS scores in four of six criteria. Lagging elements in HCAPS scores are inpatient patient satisfaction and primary care patient satisfaction. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Market Forces Affecting the Hospital

Volumes

Percent of Population by Age

Five Years Ago Five Years From Now
Under 18 24 18
18 to 44 46 32
45 to 65 26 30
Over 65 4 20

More than 53 percent of residents have at least some college education, with just over 29 percent having an associate, bachelor’s, or graduate degree. More than 90 percent of residents have at least a high school diploma.

The average unemployment rate in the county is 9.9 percent:

Market share distribution percentage with a major competitor. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Five Years Ago Last Year
Stevens District Hospital 48 35
Competitor 30 43
Out of County Hospitals 22 22

Patient Origin by Zip Code

image2.pngIncreases in the percent of population with chronic disease and contributing factors will change significantly over the coming five years. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Payment

There will be continued focus on pay for performance and increased wellness programs. The Affordable Care Act is creating more covered lives; however, there are often high deductibles.

The median household income for county residents is $59,548. On average, households in the county earn more than the state median household income of $44,446 and more than the national average of $53,650. The addition of a new automotive manufacturing plant to the local market this coming year is projected to add 1,500 production line jobs and 300 administrative jobs by year end. Median income for the production positions is estimated at $45,000 and will provide health, vision, and dental insurance benefits. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Medicaid, 35%Medicare, 30%Commercial, 24%Uninsured, 9%Other, 2%

As part of your review of this data, consider that a portion of the population will become Medicare eligible, the addition of manufacturing positions that include benefits will increase commercial insurance coverage, and changes from the Affordable Care Act will increase the number of patients in the market with insurance coverage. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Employers

There is expected growth in large employers with the addition of the automotive factory in the northwest sector of the county.

Physicians

The continued shortage of medical staff, especially in orthopedics, oncology, and primary care, will require increased recruitment efforts. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Competitors

Hanover County Hospital, which is the other hospital in the county, has an updated facility that has drawn more market share to its facility.

Competitor Key Areas of Competition New Programs and Facilities Risk to Market Share
Primary Competitors
Hanover County Hospital Facility upgrade

Quality scores

Significant renovation of core hospital to update aesthetics

Added new wide-bore MRI machine last year. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Reaches the 95th percentile in five of six HCAPS categories

Drawing patients to newer facility

Accommodates heavier patients

Patient perception of higher quality and patient satisfaction

Medical Center in County South of Stevens Physician clinics

Financial stability

E-visits with specialists

Low debt and high cash on hand

Drawing patients out of primary and specialty care at Stevens

Ability to cash flow projects

Secondary Competitors
Retail Pharmacy Instant Clinic Low acuity office visits Pharmacy added instant clinic in north end of county 6 months ago Loss of patients from primary care physicians’ practices. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Technology

A competing hospital has added e-visits for physician practices, which is causing a shift of patients to the competitor hospital's physician practices.

Regulatory Changes

Health care reform through the Affordable Care Act has increased the number of patients with some form of insurance payment. These patients are now seeking care in greater numbers from a primary care physician. Stevens District Hospital struggles with accommodating patient scheduling requests to establish care with a primary care physician. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Plan

Planning Components Explanation

Goal Objective Actions
Definition Organization goals that cover broad strategic issues, such as quality, finances, growth. HCS 499 Benchmark Assignment—SWOT Analysis Paper Broad action items that address organizational goals, such as increasing market share, increased use of technology, increased physician satisfaction Action item that meets an objective, such as implementing EMR, renovating physician lounge, increasing marketing for specific products
Examples - Improve HCAPS scores by 5%

- Improve operating margin by 3%

- Increase market share in 96103 zip code by 5%

- Improve emergency department patient satisfaction survey by 5%

- Grow urgent care visits by 10%

- Implement urgent care center in north zip code

- Purchase tablets for physicians for EMR rounding. HCS 499 Benchmark Assignment—SWOT Analysis Paper

Measurement - % increase in operating margin

- % change in market share

- % change in ED satisfaction survey

- % change in urgent care visits. HCS 499 Benchmark Assignment—SWOT Analysis Paper

- Number of patient visits at new urgent care center

- % increased use of EMR

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Financial Summary

This year Last year
Operating Revenues
Net revenues from services to patients 343,737,280 344,726,245
Other operating revenues 16,846,309 20,311,534
Total operating revenues 360,583,589 365,037,779
Operating Expenses
Salaries and benefits 192,053,379 182,853,245
Supplies and other expenses 130,173,477 135,560,131
Depreciation 18,969,799 20,644,157
Interest 2,695,623 2,226,437
Foundation 628,184 1,182,308
Total operating expenses 344,520,462 342,466,278
Income from operations 16,063,127 22,571,501

96101 is Stevens District Hospital zip code

94963 is major competitor hospital zip code

Projected Payer Mix 5-years

Current Payer Mix

Percentage of Population by Insurance

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Chart1

0.42 0.42
0.12 0.12
0.16 0.16
0.2 0.2
Column2
Column2
[], 52%

Sheet1

Column1 Column2
96101 42%
93921 12%
92106 16%
94963 20%

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Chart1

4458 5147
20930 26292
405 472
6365 7284
Last year
This year
Volume changes last year versus this year

Sheet1

Last year This year
Admission 4458 5147
ER visits 20930 26292
Deliveries 405 472
Surgeries 6365 7284

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Chart1

0.35
0.3
0.24
0.09
0.02
US Age Distribution 2010

Sheet1

US Age Distribution 2010
Medicaid 35%
Medicare 30%
Commercial 24%
Uninsured 9%
Other 2%
To resize chart data range, drag lower right corner of range.

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Chart1

0.15 0.26
0.05 0.12
0.12 0.22
5 yrs ago
5 yrs ahead
Chronic Disease Predictions

Sheet1

5 yrs ago 5 yrs ahead
Obesity 15% 26%
Diabetes 5% 12%
Heart Disease 12% 22%

What is SWOT Analysis

Stands for Strengths, Weaknesses, Opportunities and Threats

A tool to identify and summarize strengths, weaknesses, opportunities and threats of a strategic environment

Tool credited to Albert Humphrey, who led a research project at Stanford University in the 1960’s

Divides factors into internal and external factors and positive and negative influences

( Morrison, 2012)

HCS 499 Benchmark Assignment—SWOT Analysis Paper

The acronym SWOT stands for strengths, weaknesses, opportunities and threats and is used to identify and summarize these traits of a business environment. In our specific application you will be evaluating these traits in relation to a hospital and it’s community environment.

This tool is credited originally to Albert Humphrey who was a researcher in the 1960’s at Stanford University. His team used this tool to focus their thinking on the most important factors that affected their environment.

These four characteristics of strengths, weaknesses, opportunities and threats and divided in to internal/external factors and positive and negative influences.

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Both strengths and weaknesses are considered factors internal to the organization. Internal factors can be controlled by the business. For example, what do we do well or where do we excel, and where could we improve?

Opportunities and threats are external to the organization and are factors outside of the control of the organization. For example, a prime location to expand business has now become available in the community, or a competitor has added a new service line of business to their organization. While we can react to the opportunity and threat, we cannot control it.

From a different perspective, strengths and opportunities are both positive factors to be considered, while weaknesses and threats are negative factors to address. HCS 499 Benchmark Assignment—SWOT Analysis Paper

To summarize:

Strengths are internal attributes and resources that support a successful outcome.

Weaknesses are internal attributes and resources that work against a successful outcome.

Opportunities are external factors the project can capitalize on or use to its advantage.

Threats are external factors that could jeopardize success

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Strengths

Positive tangible and intangible attributes, internal to the organization

Includes capabilities of the organization, staff competencies, financial resources, products and services, goodwill and brand loyalty

Characteristics of the business that give it an advantage over others in the industry

Examples: brand name, high quality scores, employee loyalty, strong physician network

Now let us look in detail at each facet of this analysis.

Strengths are positive tangible and intangible attributes, internal to the organization

Strengths could includes capabilities of the organization, staff competencies, financial resources, products and services, goodwill and brand loyalty. Goodwill of an organization is the reputation and perception about the organization within the community.

Strengths are characteristics of the business that give it an advantage over others in the industry.

Examples of these strengths might include: brand name, high quality scores, employee loyalty, or a strong physician network

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Weaknesses

Any characteristic that is a disadvantage compared to others in the industry

Characteristic or factor that does not meet the standard they should meet

Detract from the ability to reach goals and influence growth

Examples: Limited financial resources, lower quality scores, lower patient perception of care, narrow physician network, aging equipment, weak market image

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Weaknesses of an organization are any characteristic that is a disadvantage compared to others in the industry.

Weaknesses could include factors that do not meet the standard they should meet or detract from the ability to reach goals and influence growth

Examples of weaknesses could include limited financial resources, lower quality scores, lower patient perception of care, narrow physician network, aging equipment, or a weak market image.

A strategic plan should create goals and actions that address these weaknesses and work to correct them.

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Opportunities

External attractive factors

Market, competition, technology or industry factors that could be leveraged as a positive growth factor for the organization

Examples: Financial boom for area, growth in market, new industries in region that would supplement business, specialized physician group opening in region

Opportunities are external attractive factors in the competitive market.

These are market, competition, technology or industry factors that could be leveraged as a positive growth factor for the organization

Examples of opportunities could include financial boom for the area, growth in the market, new industries in the region that would supplement business, or a specialized physician group opening in the region

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Threats

External factors that would cause a problem for the business and place the operation at risk

Any factor that puts the profitability of the organization at risk

Examples: New competitors in the market, changes in governmental regulations, regional economic downturn

!

Threats are external factors that would cause a problem for the business and place the operation at risk

Any factor that puts the profitability of the organization at risk must be addressed in the strategic plan.

Examples of threats might include new competitors in the market, changes in governmental regulations, or regional economic downturn.

Note that threats cannot always be eliminated in a strategic plan but must at least be identified so all stakeholders are aware that the threat exists.

HCS 499 Benchmark Assignment—SWOT Analysis Paper

How do we conduct a SWOT analysis?

Determine the why – what is the purpose of the analysis

Determine the who – who are the stakeholders that should be involved

Determine the how – Research and information gathering

Determine the where – a non-threatening environment

Compile your list, refine and carry forward in to the strategic planning process

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Given these four factors, how do we conduct a SWOT analysis?

First we must have a clear vision of why we are performing the analysis. This vision will guide us in determining who will be involved and how information will be gathered.

The next step is to determine who will be involved. If this plan is for one smaller unit of an organization, such as a department, staff and management of that department would be included, and possibly some stakeholders from other areas. If the plan is for an entire organization such as a hospital, stakeholders from each group, such as the governing board, administration, medical staff and department managers might be included.

Information will need to be gathered to provide the stakeholders background on the organization and current level of performance. This might include financial statements, quality measures, competitive market data and current levels of technology.

You as the facilitator of this process would want to determine a comfortable, non-threatening environment where stakeholders could feel relaxed and engaged.

HCS 499 Benchmark Assignment—SWOT Analysis Paper

After you have your list

A free form listing of thoughts of strengths, weaknesses, opportunities and threats will be compiled based on brainstorming

This listing must be sorted and items given some priority

Each section should be prioritized and limited to the top four or five factors

The factors in each section can then be used to determine your goals and objectives and the action steps to reach those goals

HCS 499 Benchmark Assignment—SWOT Analysis Paper

There are many brainstorming models and tools available to use in this process. Once a brainstormed listing of factors is identified, the team will need to narrow and refine the listing and then use that listing of factors in the remaining steps of the strategic planning process.

The list would be sorted and prioritized to limit the listing to the top four or five factors in each category.

The factors in each section can then be used to determine your goals and objectives and the action steps to reach those goals

HCS 499 Benchmark Assignment—SWOT Analysis Paper

Thank you

I hope you have found this discussion of SWOT analysis beneficial. HCS 499 Benchmark Assignment—SWOT Analysis Paper

To apply this information, review the material provided about your organization and begin brainstorming factors based on that information that would fit in a list of strengths, weaknesses, opportunities and threats. After you have completed your list, narrow your focus to the top four or five factors in each category and use this information to help develop your goals for the coming year in the strategic plan.

Do not hesitate to contact your course facilitator if you have any questions. Thank you for your participation.

Reference

Morrison, M. (2012). History of the SWOT analysis. Retrieved from https://rapidbi.com/history-of-the-swot-analysis/

HCS 499 Benchmark Assignment—SWOT Analysis Paper