Description
A strategic business unit (SBU) is an independently managed, specialized division or a line of business that focuses on particular product offering and market segment. A corporation, such as a health system, may have several SBUs that each provide distinct services. SBUs typically have separate business plans even though they may be part of a larger business entity. However, each SBU should align with and contribute value to the corporate strategy.Please see attached. thank you!SBU: Cancer ACO is mine
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Strategic Business Unit (SBU) Strategy
A strategic business unit (SBU) is an independently managed, specialized division or a line of
business that focuses on particular product offering and market segment. A corporation, such as a
health system, may have several SBUs that each provide distinct services. SBUs typically have
separate business plans even though they may be part of a larger business entity. However, each
SBU should align with and contribute value to the corporate strategy.
VII.
Strategic Business Unit (SBU) Strategy
a. Description of SBU
i. Strategic innovation of SBU
ii. Corporate organizational structure (e.g., functional, divisional,
decentralized/centralize, geographic division, matrix, and virtual)
iii. Description of value to patient
iv. Unique selling proposition (Text: 36-42)
b. Explain role of corporate in execution of SBU strategy
Briefly describe how BCHUS will support the SBU (e.g., services, employees,
budgets, etc.)
c. SBU Competitive Advantage (differentiation and sustainability)
Strategic Business Unit Strategy
PHC 6148 Strategic Planning and Health Care Marketing
Zachary Pruitt, PhD, MHA, FACHE
Presentation Objectives
• Explain the course’s pivot from corporate-level strategy to SBUlevel strategy
• Analyze population health strategies
• Explain how SBUs can position corporation strategically
• Explain role of corporate in execution of SBU strategy
• SBU Competitive Advantage
2
Strategic Business Unit Defined
• Usually, an independently managed entity or unit of a large
company
• Often with their own visions, missions, objectives, and strategic
plans.
• Goals can be different corporation.
3
Levels of Strategy
Part One
Part Two
4
Strategy, Business, & Marketing Plans
Strategic
Plan
Business
Plan
Marketing
Plan
Performance
Monitoring
Operational
Plan
Budget
Funding
Request
Population Health: A Strategy
Changing the
Financial Model
Many options.
https://getlucidity.com/strategy-resources/revenuemodel-framework-guide/
Revenue Models
• Fee-for-service and prospective payments
• Capitation
• Bundled payments
• Pay-for-performance
Revenue Cycle
FFS begins with a Procedure:
CMS 1500 Form
Current Procedural Terminology (CPT)
http://www.medicalkidunya.com/wp-content/uploads/2016/06/cpt-coing.jpg
Diagnosis Related Groups
Direct Costs
FFS vs Value-based Care
Transition to Value-based Care
Capitation
Capitated payments are pre-arranged payments for healthcare providers to deliver services on
a per member per month (PMPM) basis. Capitation payments control use of health care
resources by putting the physician at financial risk for services provided to patients.
https://www.cbinsights.com/research/medicare-advantage-growth/
Risk Adjustment
http://www.pyapc.com/wp-content/uploads/2015/11/ICD-10-article-chart-new-2.jpg
ACO Operating Model
Medicare ACOs
Bundled or Episode-based Payment Initiatives
https://nahueducationfoundation.org/toolkit/Infographics.cfm
Geisinger’s ProvenCare
• Bundled or episode-based payment
• Coronary Artery Bypass Graft Surgery (CABG)
• 40 discrete care process steps for patients for CABGs
Delbanco, S. (2014). The payment reform landscape: Bundled payment. Health Affairs Blog [Internet].
UnitedHealthcare Care
Bundles Program
Partners HealthCare
• 8 other community hospitals
• Partners Community Physicians Organization represents more
than 6,000 physicians
• Neighborhood Health Plan (NHP)
http://www.partners.org/
Division of Population Health Management
• Created to solve 2
problems:
• Translating system-level risk
into physician-level
incentives
• Harmonizing heterogeneous
incentives and metrics
across payers and contracts
Founded by Boston’s
Massachusetts General
Hospital and Brigham &
Women’s (AMCs)
Powers, B. W., Navathe, A. S., Chaguturu, S. K., Ferris, T. G., & Torchiana, D. F. (2016, May). Aligning
incentives for value: The internal performance framework at Partners HealthCare. In Healthcare. Elsevier.
Partners: 1. Translating Incentives
System-level
Organizationlevel
PhysicianLevel
Powers, B. W., Navathe, A. S., Chaguturu, S. K., Ferris, T. G., & Torchiana, D. F. (2016, May). Aligning
incentives for value: The internal performance framework at Partners HealthCare. In Healthcare. Elsevier.
Partners: 2. Harmonizing Incentives
Powers, B. W., Navathe, A. S., Chaguturu, S. K., Ferris, T. G., & Torchiana, D. F. (2016, May). Aligning
incentives for value: The internal performance framework at Partners HealthCare. In Healthcare. Elsevier.
PHM Incentive Plan
Implementing PHM
Strategies
Slowing Cost Growth
Improving Select Quality
Measures
40% Total
40% Total
40% Total
Patient-centered Medical Home
Target of total medical expense 40%
(10%-20%)
Shared Risk (MDs 13%, Hospitals
10%)
Integrated care management
program (10-20%)
MD Only Risk (7%) – e.g.,
Diabetes Screenings
Specialty Programs (10%)
Hospital Only Risk Choice
Measures (10%)
Discharge Transition Measures
(10%)
Case Study
• Accountable Care in the Safety Net: A Case Study of
the Cambridge Health Alliance
Cambridge Health Alliance ACO
Transformation Model
• Changing the Financial Model
• Building Patient-Centered Medical Home Capability
• Transforming the Workforce and Culture
• Implementing Complex Care Management
• Creating an Effective Referral Process
• Establishing Preferred Tertiary and Community Partnerships
Reducing Waste
Slide from Emily Allinder Scott
Description of Strategic Business Unit
Description of Strategic Business Unit
• Strategic innovation of SBU
• Corporate/SBU organizational structure
• Describe value chain in patient care
• Unique selling proposition (Text: 36-42)
33
Strategic Innovation of SBU
• Describe the Strategic Business Unit
• What service will the SBU provide?
• How will the SBU generate revenue?
• Will there be partnerships?
• Generally, how will the SBU work?
• Describe innovation
• How the SBU is different than existing services in the corporate
portfolio?
• How will SBU strategically position corporation?
34
Organizational
Structure
Strategy determines
structure;
Structure determines
strategy
Corporate Org Structure
Charns, M. P. (1996). Organization design of integrated delivery systems. Hospital & Health Services Administration, 42(3), 411-432.
Organizational Structure
• Divide the work into manageable activities (division of
work)
• Assign responsibilities (span of control)
• Determine lines of command
Division of Work
• Who does what?
Image credits © Gaurav Akrani
Functional Organizational Structure
Departmentalization by
common skills and work
tasks
http://samples.jbpub.com/9780763759643/59643_ch02_5289.pdf
Geographic Divisions
https://www.edrawsoft.com/divisional-organizational-chart.html
Centralized vs. Decentralized
https://courses.lumenlearning.com/boundless-management/chapter/defining-organization/
Matrix Organizational Design
More complex combination of
functional and service line
(divisional)
Hospital Example of Matrix Design
Service Lines
Fine, P. S., & Kuhlenbeck, K. (2021). Implementing a New Service Line Model to Support Growth and Serve Patients. Frontiers of Health Services
Management, 37(3), 4-13.
Service Line Organizational Structure
Departmentalization by common
product, program, or geographical
location (also called divisional)
Health System Corporate Org Structure
Strategic Business Units
https://blog.avada.io/resources/strategic-business-unit.html
Your SBU Structure
• What is the span of control of the SBU executive in
charge?
• Is there a partnership involved with your business plan?
• If so, how does this impact the organizational structure?
• How does information flow?
• How are decisions made?
Org Chart Activity
Your Group Developed a Media Product
Disney wants to buy you. What do you do?
Where does
your
company
belong?
What is the
Org
Structure?
https://bgr.com/wp-content/uploads/2019/04/companies-disney-owns.jpg?quality=98&strip=all
My Example
Value to Patient
Describe Value to
Patient
• Define value in healthcare
• Value-based competition
• Porter’s Value Agenda
• Porter’s Value Chain
Micheal Porter
Definition of Value
53
Value-based Competition
Porter, M. E., & Teisberg, E. O. (2006). Redefining health care: creating value-based competition on results. Harvard Business Press.54
Porter’s Value Agenda
• Organize care around the patient
• Measure outcomes and cost for every patient
• Move to bundled prices for care cycles
• Integrate care delivery systems
• Expand geographic coverage
• Build an enabling information technology platform
Porter, M. E., & Lee, T. H. (2013). The strategy that will fix health care. Harv Bus Rev, 91(12). Retrieved from:
https://hbr.org/2013/10/the-strategy-that-will-fix-health-care
55
Porter’s Value Chain
fourweekmba.com
Porter’s Healthcare Value Chain
Porter, M. E., & Millar, V. E. (1985). How information gives you competitive advantage.
57
Unique Selling
Proposition
See Text pages 36-42
Value to Customer (Patient)
Role of Corporate in
Execution of SBU Strategy
Describe Relationship between Corporate & SBU
• How can Corporate help SBU succeed?
• What resources will corporate provide?
• Financing?
• Contracting/Outsourcing?
• Capabilities?
• Central services?
• Expertise?
• Decision making?
Levels of Strategy
Part One
Part Two
61
Competitive Advantage
Competitive Advantage
• Goal of strategic positioning and market differentiation
• Explicit rationale
• Why, based on corporate strategy, does your business model
make sense?
• Succinct justification
• How does your business model meet the mandate of the CEO?
63
Competitive Advantage must be …
• Strategically important
• Sustainable
• Strong research and development capabilities or personnel
• Access to intellectual property or specialized knowledge
• Superior product or customer support
• Access to capital markets
64
External Sources of Competitive Advantage
• Customer demands
• Policy changes
• Price changes
• Technological innovations
• Emergence of new markets
• New strategic allies, acquisitions, mergers
• Fewer competitors
• Change in payer mix
65
Internal Sources of Competitive Advantage
• Examine core competencies, capabilities, resources,
processes, policies, procedures
• Examine S.W.O.T. analysis
66
S.W.O.T. Analysis
http://commons.wikimedia.org/wiki/File:SWOT_en.svg
A population health strategy for Bay City 133
Case Study: A Population Health
Strategy for Bay City
Zachary Pruitt, PhD
Abstract
As the Affordable Care Act (ACA) moves the U.S. healthcare system toward
population health through value-based purchasing policies (Shaw, Asomugha,
Conway, & Rein, 2014), many healthcare organizations have begun to reconsider
their strategies (Coughlin, Long, Sheen, & Tolbert, 2012; Goldsmith, 2011). The
described case scenario provides rich detail for students to apply healthcare
strategic planning knowledge in a value-based, population health-focused
context. With an intricate community description, comprehensive market facts,
and detailed financial data, the case encourages student learning of innovative business models, including Medicare Accountable Care Organizations,
ACA health insurance plans, and Medicaid Coordinated Care Organizations.
Please address correspondence to: Zachary Pruitt, PhD, University of South Florida, Health
Policy and Management, 13201 Bruce B. Downs Blvd., MDC56, Tampa, FL 33612-3805
Phone: (727) 560-9735; Email: zpruitt1@health.usf.edu
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Introduction
As the Affordable Care Act (ACA) moves the U.S. healthcare system toward
population health through value-based purchasing policies (Shaw, Asomugha,
Conway, & Rein, 2014), many healthcare organizations have begun to reconsider
their strategies (Coughlin, Long, Sheen, & Tolbert, 2012; Goldsmith, 2011). This
12,000-plus-word case provides rich detail for students to apply healthcare
strategic planning knowledge in a value-based, population health-focused
context. With an intricate community description, comprehensive market facts,
and detailed financial data, the case encourages student learning of innovative business models, including Medicare Accountable Care Organizations,
ACA health insurance plans, and Medicaid Coordinated Care Organizations.
As described in the detailed case, the fictitious CEO of the Bay City University
Health System (BCUHS) sees that the increasing trend of risk-based payments
will require his organization to innovate. The CEO asked the Strategic Planning Committee analysts (i.e., the student teams) to explore innovative ways
for BCUHS to develop population health capabilities. However, the Strategic
Planning Committee members have differing views on how to achieve the
CEO’s vision. To resolve this conflict, student teams compete to develop the
best strategic plan that meets the CEO’s vision.
Team-based learning simulates the work environments of healthcare industry practice (Lieneck and Greathouse, 2015). “Population Health Strategy for
Bay City” enables students to achieve multiple National Center for Healthcare
Leadership competencies, including development of a strategic orientation,
analytical thinking, performance management, information seeking, professionalism, and collaboration (NCHL, 2006). The case has been successfully
utilized in a graduate-level strategic planning course at an AUPHA-certified
and CAHME-accredited institution.
Bay City case scenario
Named the new the CEO nine months ago, John Woodrow, M.H.A., Ph.D.,
promises a new strategy at Bay City University Health System (BCUHS). As
a visionary leader, Dr. Woodrow views the policy changes produced by the
Affordable Care Act (ACA) as an opportunity for BCUHS to shift from the
current medical intervention model toward more holistic population healthbased practices. Dr. Woodrow has asked the Strategic Planning Committee
to develop options to achieve this vision.
BCUHS is an Academic Medical Center comprising two hospitals with
more than 700 staffed beds, an affiliated 237-bed cancer center, 150 ambulatory sites, 14,000-plus employees, and an annual operating budget of more
A population health strategy for Bay City 135
than $2 billion. BCUHS’s two inpatient facilities, Bay City General Hospital
and Oakridge Children’s Hospital, account for 24% of the inpatient market
in the Apollo Bay area, behind St. Basil Health System (29%) and American
Corporate Hospitals (26%). In addition to inpatient market share, the case
provides 13 financial ratios, beds per hospital, and the number of credentialed
physicians for all health system competitors. Data also include BCUHS payer
mix and payment types as a percent of net patient revenue (e.g., capitation).
Health insurance, long-term care, home care, laboratory, and imaging services
market shares are also included.
Bay City is a growing and vibrant city that serves as the metropolitan hub
for over 2 million people in the Apollo Bay region. Market data for the region
includes population characteristics such as racial and ethnic proportions, and
community health characteristics such as disease prevalence. In addition,
descriptions of healthcare policy, including ACA health insurance exchange,
Medicare Accountable Care Organizations, Medicaid expansion, Medicare
readmission penalties, and certificates of need, are made available in the case
for student analysis.
In a recent meeting with the Strategic Planning Committee, Dr. Woodrow
expressed his desire that analysts explore innovative ways for BCUHS to work
across organizational boundaries, increase accountability, and improve the
health of the community. Dr. Woodrow’s main question was, “What will it
mean for BCUHS to be held financially accountable for the total health of patients?” His Chief of Staff took notes at this meeting. Dr. Woodrow explained
that BCUHS needs to:
•
capitalize on business opportunities generated from the ACA;
•
improve population health management capabilities to position BCUHS
to compete in light of value-based purchasing policies;
•
respond to the emerging health care delivery models;
•
analyze the costs of services to take advantage of new reimbursement
methods, such as capitation and global payments;
•
assess the benefits of BCUHS’s recent information technology investments; and
•
strengthen community connections to effectively address social determinants of health.
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Student teams and strategic business units
Students are assigned to one of five teams. Each student team explores a
different strategic business unit concept (i.e., business model). The student
teams use information from the case to develop the most persuasive and fully
substantiated strategic plan for their assigned strategic business unit. The
instructor and/or community healthcare executives can judge and rank the
student teams’ performances in a case competition-style review. A student
team represents a different member of the BCUHS Strategic Planning Committee, each of whom advocate a unique strategic business unit concept. The
five team concepts are:
Team 1: John Barbosa, former insurance executive and state senator, current Chairman of the Board, recommends creating a health plan for the
Affordable Care Act’s Health Insurance Exchange, an upstream vertical
integration strategy. “We have a built-in provider network that enables
BCUHS to efficiently offer these new health insurance exchange customers.”
Team 2: Veronica Tanner, President, Pediatrician and BCUHS-owned
Oakridge Children’s Hospital CEO suggests creating a Medicaid Coordinated Care Organization in partnership with the Bay County Health Department. “We need to leverage our information technology infrastructure
and enhance our primary care to reduce costs.”
Team 3: Christine Chassin, Senior Vice President and Chief Strategy and
Business Development Officer of BCUHS, advocates the creation of a
Medicare Accountable Care Organization. “To be successful, we need to
reduce the total costs of care to below a certain benchmark and meet quality goals. The performance bonus could be significant.”
Team 4: Louis Winthorpe III, President of the BCHUS-affiliated Duke
Brothers Cancer Institute and BCUHS board member, recommends partnering with a private insurance company to accept global payments for
specific types of cancer diagnoses, a Cancer-specific Accountable Care
Organization. “We will be incentivized to efficiently manage treatment
and diagnose cancer earlier.”
Team 5: Sal Vinarelli, bank executive and hospital board member, recommends that BCUHS continue the high-volume, high-acuity fee-for-service
model. “I see no reason to stop milking the fee-for-service cash cow. I
believe we should resist any temptation to invest in some new-fangled
pay-for-performance trend. Instead, we should invest in the positioning
BCUHS to provide services to patients throughout the continuum of care.”
A population health strategy for Bay City 137
Teaching Notes
Learning Objectives
This case-based experiential learning activity supports eight objectives: (1)
apply systems thinking to the changing healthcare environment shaped
by the Patient Protection and Affordable Care Act of 2010; (2) interpret the
implications of various reimbursement methods utilized in U.S. healthcare;
(3) develop strategic planning skills, including internal and external environmental analysis; (4) articulate internal capabilities and competitive advantage;
(5) construct goals and objectives for both corporation and strategic business
unit; (6) develop and execute project management plan; (7) prepare a written
strategic plan; and (8) formulate and deliver persuasive oral presentation.
Classroom management
The following are possible class sessions topics and sequence for the teambased activity.
Session 1 – Introduce case scenario: In this session, the instructor should
explain the case scenario and assessment approach, and create teams for
each strategic business unit (e.g., Medicare Accountable Care Organization). It is recommended that groups of no more than five individuals be
formed (Treen, Atanasova, Pitt, & Johnson, 2016). Also, instructors should
clarify that each team should address two different levels of organization
in their strategic plan: the corporate level and the strategic business unit
level. First, the corporate-level strategic plan examines the BCUHS corporate entity, including the two hospitals, outpatient clinics, information
technology infrastructure, and other information provided in the case. The
corporate-level strategic plan can address components such as the strategic
direction (i.e., mission, vision, and values), competitive analysis, core competencies, and the product or service portfolio strategy. The second level is
the strategic business unit ideas promoted by various executive members
of the Strategic Planning Committee (described briefly above and in detail
in the Appendix). The strategic business unit-level plan should be based
on the BCUHS corporate-level strategy. In this case activity, the strategic
business units are different for each student group. For example, one team
will develop a strategic plan that addresses both the BCUHS corporate-level
strategy and the ACA Health Insurance Exchange health plan strategy.
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Session 2 – Create internal and external environmental analysis: For the
second session, student groups should complete internal and external
environmental analysis. Internal analyses can include corporate-level strategic direction (mission, vision, and values), BCUHS core competencies,
and financial analysis (see Appendix A, Table 1). The external analyses can
include the service area description, a legal and regulatory assessment, and
competitor analysis.
Session 3 – Strategic positioning: For the third session, students should
complete the strategic position of the corporate entity (BCUHS), which
can include a description of adaptive strategy (e.g., vertical integration),
explanation of the market-entry strategy (e.g., merger), and a discussion
of the strategic portfolio mix (e.g., inpatient versus outpatient).
Session 4 – Strategic business unit strategy: For the fourth session, students should complete the strategic business unit strategy. It is critical that
strategic business unit strategy integrate with the corporate-level strategy
described above. Students should provide an explicit rationale as to why
their particular strategic business unit idea will be successful given the
corporate-level strategy articulated by their plan. Students must offer succinct justification for why the strategic business unit provides a competitive
advantage for BCUHS.
Session 5 – Present strategic plans: In the final session, student groups
should present a persuasive argument as to why their strategic business
unit (e.g., Medicare ACO) is the best approach for achieving the CEO’s vision. Presentations should include goals and objectives of BCUHS and the
strategic business unit; a description of the revenue model; the competitive
advantage of the strategic business unit; and strengths, weaknesses, opportunities, and threats of the strategic business unit. It is recommended
that instructors invite a community executive to act as “John Woodrow,
CEO,” the judge of the student strategic presentation competition.
A population health strategy for Bay City 139
Questions
1.
What are the core competencies of Bay City University Health System
(BCUHS)?
2.
How does the corporate-level strategic plan for BCUHS differ from the
strategic business unit-level strategy?
3.
Your recommended business model would be just one of many products offered by BCUHS. Describe how your strategic business unit
fits within your overall health service portfolio strategy. You may use
BCG Matrix or GE/McKinsey matrix to describe your team’s approach.
4.
What is the competitive advantage for your strategic business unit?
5.
What is the strategic innovation of your recommended strategic business
unit? How does your strategic business unit agree with the population
health vision of the CEO?
References
Coughlin, T. A., Long, S. K., Sheen, E., & Tolbert, J. (2012). How five leading
safety-net hospitals are preparing for the challenges and opportunities of
health care reform. Health Affairs, 31(8), 1690-1697.
Goldsmith, J. (2011). Accountable care organizations: the case for flexible
partnerships between health plans and providers. Health Affairs, 30(1), 32-40.
Lieneck, C., & Greathouse, D. G. (2015). Use of experiential learning activities
to teach implicit communication in health care services marketing.
Journal of Health Administration Education, 32(1), 149-156.
NCHL. (2006). NCHL Healthcare Leadership Competency Model, v2.1. Retrieved
from http://www.nchl.org/Documents/NavLink/NCHL_Competency_
Model-full_uid892012226572.pdf
Shaw, F. E., Asomugha, C. N., Conway, P. H., & Rein, A. S. (2014). The Patient
Protection and Affordable Care Act: Opportunities for prevention and
public health. The Lancet, 384(9937), 75-82.
Treen, E., Atanasova, C., & Johnson, M. (2016). Evidence from a large sample
on the effects of group size and decision-making time on performance in
a marketing simulation game. Journal of Marketing Education, 38(2), 130-137.
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Appendix A: Case Details
Bay City case scenario
Named the new the CEO of the nine months ago, John Woodrow, M.H.A.,
Ph.D. promises a new approach to strategic planning at Bay City University
Health System (BCUHS). A visionary leader, Dr. Woodrow views the policy
changes spawned by the Affordable Care Act (ACA) as an opportunity for
BCUHS to shift from the current medical intervention model toward more
holistic population health-based practices.
BCUHS is an Academic Medical Center (AMC) in Bay City comprising
two hospitals with more than 700 staffed beds, 150 ambulatory sites, 14,000
employees, and an operating budget of more than $2 billion. BCUHS strongly
identifies with the community of Bay City, a vibrant city that serves as the
metropolitan hub for more than 2 million people in the Apollo Bay region.
In a recent meeting with the Strategic Planning Committee, Dr. Woodrow
expressed his desire that analysts explore innovative ways for BCUHS to work
across organizational boundaries, increase accountability, and improve the
health of the community. Dr. Woodrow’s main question was, “What will it
mean for BCUHS to be held financially accountable for the total health of
patients?” Dr. Woodrow explained that BCUHS needs to:
•
capitalize on business opportunities generated from the ACA;
•
improve population health management capabilities to position BCUHS
to compete in light of value-based purchasing policies;
•
respond to the emerging health care delivery models;
•
analyze the costs of services to take advantage of new reimbursement
methods, such as capitation and global payments;
•
reap benefits of BCUHS’s recent information technology investments;
and
•
strengthen community connections to effectively address social determinants of health.
A population health strategy for Bay City 141
Strategic direction of Bay City University Health System
Steve Doering: Dr. Woodrow, thank you very much for speaking with me today.
As we begin the strategic planning process, I want to get your thoughts on the strategic direction for Bay City University Health System. Do you mind if I pronounce
“BCUHS” as “BECAUSE?”
Dr. John Woodrow: Not at all. I think that pronunciation reminds us that we have
a sense of purpose. A “because,” if you will.
Doering: Ha! That’s great! So, let’s get started. As you know, a strategic direction
consists of three parts: mission, vision and values–all intertwined. Let’s begin with
our mission, our purpose and reason for existence. Can you describe what we do and
for whom?
Woodrow: Absolutely. We are committed to helping all people of Apollo Bay regional
area maintain healthy lives. Our mission is to eliminate health disparities in our community through service, education, and clinical practice, and scholarship.
Doering: Now, that mission helps us frame the vision, the next part of the strategic
direction. The vision should describe our desired long-term future state.
Woodrow: I think the vision keeps management focused on meeting the needs of
stakeholders, but we need to articulate our big stretch.
Doering: A stretch?
Woodrow: Yes. BCUHS will continue to provide care to those with the most difficult
health challenges. But, with the world changing rapidly around us, I see BCUHS as
a national leader in health care delivery and medical science innovation. I want to
maintain our position as an education and research leader by continuing our emphasis
on information technology. We can get better, though. We need to do an even better job
with collaborating with our network of community and academic providers. I see us
aggressively redesigning care delivery to improve care coordination. This will enable
us to be a leader in population health management in our region.
Doering: That’s a big vision. So, let’s move on to our organizational values that
define our basic philosophy, principles, and ideals. Values represent the “soul” of our
organization.
Woodrow: Above all, we have to accept accountability for excellence in achieving
our mission. It is not enough to say we want to eliminate health disparities in our
community; we have to measure our accomplishments and adjust our performance,
as appropriate. And we must advocate for equitable access to healthcare. We must
respect patients and their families by providing quality care in a compassionate and
culturally sensitive manner.
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Doering: So how do we accomplish that?
Woodrow: We need to implement and codify the best care processes, which we call
our patient-centered approach. Not only patient-centered, but evidence-based. This
means that we have to create new knowledge through research, and then translate this
knowledge into practice. Since we already provide the highest-quality education for
the next generation of healthcare professionals, we value transferring our knowledge.
Parts of our organization have already innovated care delivery through team-based
care, chronic disease management, and population-based practices. Not only can we
teach our organization these award-winning methods, but collaborate with others
across Apollo Bay region to achieve a common purpose and create value.
Doering: Is that possible at an organization the size of BCUHS?
Woodrow: Perhaps AMCs are slow to change. However, other large and complex
organizations, such as Google, are able to move quickly. I think we can innovate.
Also, our brand is the one thing we value, and we must protect it. This can be done by
providing exceptional performance in clinical outcomes AND patient experience. In
addition, as a multifaceted healthcare system, we value lifelong care. Our brand should
focus on the patient value throughout their life, and not just when they are very sick.
Doering: Is that possible at an organization the size of BCUHS?
Woodrow: Yes, but, we’ve got to keep cost-effectiveness in mind. “No margin, no mission,” as they say. But I like to say that we have to maintain a high level of stewardship
for the resources of this amazing community asset of BCUHS. So, in our everyday
practice, cost efficiency should be addressed by the entire organization, with BCUHS
leadership working with providers and staff to identify areas of savings.
Doering: Excellent. I think we have plenty for the teams of analysts to work with in
order to create their strategic plans. Thank you.
Woodrow: Thank you.
Strategic Planning Committe recommendations
George Barbosa, Chairman of the Board (as told to Steve Doering, Chief of Staff)
Barbosa: As you know, I made my money in health insurance. I remember the days
when hospitals, physician practices, ancillary providers, AND insurers were all part
of the same integrated delivery network. Smartly, I stayed out of that integration
business. I resisted it because I knew that some large health systems were just losing
money on the insurance side just to make money on the provider side, or vice versa.
It was a zero-sum game.
A population health strategy for Bay City 143
As a former politician, I also know the importance of having a good name. It’s an asset
you can count on. And BCUHS has a strong brand, which is exactly what we should
leverage in this new health policy environment.
My suggestion—and I’d be interested in hearing what the others think—is to create a
separate insurance company that competes in the ACA’s Health Insurance Exchange.
I know that there are only four current insurance companies competing in the online
marketplace in the Bay Ci
