An effective enterprise strategy addresses the overall competitive situation and provides guidance to the organization to make decisions.

Developing and implementing a distinctive strategy that leads to competitive advantage is particularly difficult in healthcare, especially for hospitals. Over 25 years ago, Peter Drucker described the hospital as “the most complex human institution around.” Since then, the level of competition has increased dramatically, along with the complexity level:

• Shift in reimbursement, from cost plus to fixed fee
  
• Shift in setting, from inpatient to outpatient
  
• Less Certificate of Need protection for existing hospitals and patients
  
• Introduction of focused competitors that target profitable services  
  
• Ownership of competing facilities by a hospital’s “own” medical staff
  
• Less availability of key resources (medical staff, nurses, capital)
  
• Increased payment risk (e.g., uninsured, high-deductible plans)
  
• Patient expectations for excellent service across the continuum

Thus, while in many markets, local hospital systems compete against each other, these same institutions often also compete at the service-level against non-hospital entities. These new entities offer easy patient access, simple operations, and strong ties to referring physician investors.

Enterprise strategy development and business planning should be developed in a structured, fact-based manner, with other planning efforts, such as master facility planning and medical staff development. A successful strategic plan should drive resource allocation decisions, influence the organization’s design, and guide relationships with key external constituencies (e.g., physicians, payers).

“Good strategy…is one that is responsive to change and that builds, builds upon, and stretches the resources that yield competitive advantage.”
- Richard Rumelt - Stanford

Honour Healthcare Enterprise Strategy powered by RiverLogic

Dimensions of Competition

• Specialists
• Facilities/Programs
• Regional Referral Network
• Primary Care
• Health Plan/Employees
• Retail
• Pricing/Contracting

Our holistic approach covers the entire scope required for a comprehensive strategy. Often, we assist in targeting business planning projects. However, in all cases, we ensure that the plans and strategies reflect operational and organizational realities.

Services:

• Strategic Planning
  
• Service Line Planning and Clinical Program Development
  
• Capital Allocation
  
• Dynamic, Rolling Budgeting
  
• Physician Relations and Medical Staff Development
  
• Joint Ventures
  
• Marketing Strategy
  
• Integrated Business Planning