Final Strategic Plan

Kaiser Permanente

Charles Turner

Kaiser Permanente

STR/581

Table of Contents

Executive Summary 3

Business Model and Strategic Plan Part I 5

Business Model and Strategic Plan Part II11

Business Model and Strategic Plan Part III16

Conclusion20

References22

Executive Summary

Kaiser Permanente has been in the process of developing a new division of the company. The addition will be a new wing designed especially for children patients. The expansion will be able to provide better care to the children who are sick, receiving treatments, and who are admitted to the hospital. Kaiser Permanente prides itself on providing the best care and feels that this expansion will help it continue to do so. The growth the company can expect to see is steady. The company will be able to grow its customer base. The company is a total provider and offers health insurance to consumers at an affordable rate. The insured are seen by the company’s doctors and at its facilities. The expansion is expected to entice more customers and have more insured members. The company will provide better equipment and strive to provide the best care. The company has conducted research to determine if the expansion was the best option. It has been determined that the expansion is the best option for the company. The company will have minimal risk associated with the expansion. The cost of the expansion should be made up for in the additional revenue generated. The management team will add a member to oversee the new department. The team will continue to work together to make the company successful and provide a high level of customer satisfaction. All people involved in this expansion will benefit from it. The revenue will only increase more and more as time goes on. The more time that passes the more patients that will be insured and seen in the facilities. The company performed a SWOTT analysis, and the results were analyzed. The company is a leader in the industry and will continue to be so with the changes. The changes have more positive benefits than it does risks. The company will be able to provide better service and to more people. The healthcare industry will continue to grow as the population increases. Healthcare is an industry that will always be needed, and the need will not phase out and become extinct.

Business Model and Strategic Plan Part I

Kaiser Permanente is one of the leaders in healthcare and is a not-for-profit health plan. The company is an insurance provider and healthcare provider making it a total package. The company is located in eight states and the District of Columbia (Kaiser Permanente, 2014). The company thrives to be a leader in the industry and has a goal to be the leader. The healthcare industry is one of the largest and continues to grow with an expected growth rate of 4.5% in 2014 (IBIS World, 2014). With a dedication to serve patients and provide the best the care, Kaiser Permanente is coming out on top. The company strives to provide exceptional service and care at affordable prices.

New Division

Kaiser Permanente is a leader in the industry, but needs to focus more on the care of children. With the rise of the amount of children requiring care, the company needs to direct focus onto the care of children who have insurance coverage through the company. The company offers doctor’s offices and hospital for its members. With the amount of children who have a Kaiser Permanente health plan, they need a place of their own to be treated. The company will offer a new wing of the hospital to be directed to children only and give the children a sense of security that is lost when they are admitted to the hospital for treatment or surgery. The change will help the company to become the leader in the industry and help to increase patient satisfaction. Children who have any type of illness, disease, cancer, or any other condition needing medical attention need to feel safe. Many times when a child is admitted to a hospital or goes to see a doctor, it is a scary situation for him or her. With the new addition to the company, the primary focus will be to treat the patient and give the best rate of survival and recovery. The second priority will be to make the patient feels as comfortable as possible. To help increase the level of comfort a child has, new rooms will be designed to accommodate the parents of the children as well as the children.

Comforts

Children require a different level of care compared to other patients. The needs for a child are different than an adult. The rooms in the new children’s division will be setup to include an actual bed for the parents. Many children’s hospitals only have a little chair that converts to a lounge for a parent to sleep in. When a child is sick, he or she wants his or mommy and daddy. This will allow both parents to be able to stay with the child and make him or her secure. Every aspect of the new division will focus on the comforts a child needs to feel secure. The company will take every action to keep the safety of the children in mind and reduce the chance of an accident at the facility.

Customer Needs

The new division will strive to provide exceptional service. Each patient at the end of his or her stay will be asked to provide feedback about his or her stay. The company encourages patients, to provide feedback and offer suggestions on how it can become better. The wants to hear the negative comments as well as it is the only way it can improve and provide better service. In the healthcare industry, the needs of patients differ and the staff will address the needs of the patients on an individual level. The staff will fulfill the needs of each and every patient the best as they can. No patient will ever feel that he or she is not receiving the level of care that he or she needs.

Advantage

Kaiser Permanente will achieve a competitive advantage in the healthcare industry with a new division. The company is already a leader in the industry and will become the leader. The amount of children’s hospitals is under 5% of the total number. That is a tiny number compared to how many children require care. The new division will increase the amount of people who have the company as a provider and provide more patient satisfaction. With the new division, Kaiser Permanente is expecting to provide more coverage to people and increase the number of people who have its insurance.

Vision

The vision of the new division of Kaiser Permanente is to provide children with a feeling of safety and security at its facilities. The company wants to expand its services to children and provide better care for children and doctors who are specialized in those areas. The needs of a child are greater, and the company is committed to exceeding the level of service for those needs while providing some of the comforts of home. When a child is in the hospital, it is a difficult situation and the company plans to provide service to make the process as easy as possible. With the added services, the company will continue to be a leader in the industry and emerge on top as an affordable high quality provider.

New & Old

The new division will have the same mission as the company to provide affordable, high quality healthcare and improve the health of the patients. The only difference is the new division will focus on children only. The new division will strive to provide services at affordable costs to patients and still provide a high level of services. The company wants to be a model in the industry and be a place that everyone wants to be treated and work for. The more the company strives to reach that the goal more successful it will become.

Strategy

The new division has a strategy to gain more members by offering more services and focusing on the needs of children. The new division will offer patients a high level of care at an affordable cost. The company will focus on children and have specialists in all areas of a child’s health. As people become aware of the services that are offered and the affordable costs, Kaiser Permanente’s network will grow. It is not anticipated to have a major growth at once but a steady progression over the years. The company will make changes as needed and continue to evaluate the needs of the patients that it serves. The company and its employees will not forget the mission and vision of the company. Each employee will continue to follow the mission of the company each day and with every patient.

Implementation

To implement the proposed plan, the company will have to market itself to people who do not have health insurance or who are paying high premiums for their current insurance. The company will update its current website to include information about the expansion and the low-cost health insurance it offers. The company will work with employers to become the health care provider for the company and its employees. Kaiser Permanente will have press releases regarding the new expansion and bring awareness to as many people as possible. The internet is a major marketing tool. Many people use the internet on a daily basis. Kaiser Permanente will have information on the internet and provide customers with quotes and provider information. A person will be able to see each step of the process, in pictures, and all contact information will be listed. The company will place advertisements and get its name to as many people as possible. To ensure the strategic plan is implemented and followed the director of the hospital will oversee the project until a new department manager is hired. The director will hold meetings to inform all employees of the strategic plan and what each person’s role is in the process. Weekly goals will be set and graphed or charted to help ensure each goal is met. The goal of the company is to provide the best service possible. Customer satisfaction surveys will be given out to patients and reviewed to ensure that during the expansion process the level of care and service does not waiver. Ensuring that all goals are met will help keep the company adhering to the plan. The company will adapt to needed changes quickly and has predicted changes that could occur because of internal and external factors. The company will remain organized, and a board will be developed for the construction of the new wing. The board will provide guidance and help to monitor the progress of the strategic plan. The board will address any issues that arise and suggest changes if needed. The board is a direct link to the employees and the director. This project will not be successful without the team work this company is known for. The company has to follow all local, state, and federal regulations. Remaining legal is a priority to the company. The company will implement any new or revised laws immediately. The company will not refuse service, in a life-threatening situation because a person does not insurance. The company wants to help as many people as possible. The company will remain ethical in its practices. The company plans to target as many customers as possible. The company will aim to all people including young adults, married couples with or without children, and seniors. Everyone needs to have medical insurance. The company will provide presentations to groups, and explain why insurance is needed. It will show costs compare between different companies. The customer will leave the presentation knowing without a doubt that Kaiser Permanente is the best choice for him or her.

Principles

The new division of Kaiser Permanente will work with the community to provide awareness of child illness, immunizations, and wellness checks. The health of children is the future, and healthcare is necessary to ensure the children are healthy and receive proper care. The new division will have fundraisers and special events to help cover the cost of healthcare for those in need, which cannot afford or do not have healthcare. The new division has a responsibility to make sure the community and the children are taken care of. The company will encourage its employees to give back to the community by donating their time to local charities in the area. The company will not discriminate because of any reason, and all patients will be treated equal. No person will receive a higher level of care because of ethnicity, religion, age, race, culture, or financial status. The goal is to provide care to as many as possible without reducing the high level of care provided.

Business Model and Strategic Plan Part II

SWOTT analysis is crucial for evaluating both internal and external factors that influence a company and the objective of the company along with the decisions the company will make. The SWOTT will identify the strengths, weaknesses, opportunities, threats, and trends and allow a company to determine if the objective needs to be changed or if the company can continue with the current objective (Caldwell, 2014). A SWOTT analysis will not always be in favor of the objective. A SWOTT analysis of Kaiser Permanente will be conducted to determine the companies plan for a new children’s wing, and if it can sustain in the current market or what changes will need to be made for it to be successful.

External Environmental Analysis

The external environmental will have a slight affect over the object for Kaiser Permanente and the expansion. These effects will be very minimal as the company is a total provider, and the patients the hospital and doctors see are required to have health insurance coverage from the company. Other hospitals will not affect the business unless a patient is in an area that does not have a Kaiser Permanente provider. The company will need to continue to offer affordable health insurance and care to continue to be a leader in the market.

Legal and Regulatory

The company will continue to follow all local, state, and federal regulations regarding healthcare and services. The company will follow an updated laws and regulations and attend any workshops or seminars regarding the changes. The regulations and legalities will not have an affect over the objective as the company is already a provider of healthcare services and is only expanding the services. To provide the highest level of service, the company will have to follow all regulations to ensure patient safety.

Economic Factors

The economy should not have a major impact on the company’s objective. Healthcare services are always needed, and the need continues to grow with the growth of the population. People may not be able to afford the health insurance coverage if they have lost employment because of economic factors. The company is going to continue to offer affordable services, and this should not be a major factor. The more affordable the health insurance coverage is, the more people who will have health insurance coverage. The economy should not influence the objective enough to have to change the objective. The objective will take initial funds to construct the wing and provide the equipment needed to provide the best care.

Technology

The technological factors will only benefit the company. As technology advances, the company will be able to use the advancements and provide faster services to the patients. The company already uses technology to be more proficient and keep electronic medical records. The company will update the equipment as advancements are made. New technology provides faster service for the patients and helps the environment for paper waste from the older paper patient charts.

Internal Environment Analysis

The internal factors are just as important as the external factors to evaluate when planning. The company will have to have a positive analysis to continue with the current objective. The internal analysis will focus on factors such as leadership, goals, and structure of the company and how they may affect the objective.

Leadership

The leadership of the company is very important to ensure the patients receive the best care, and the staff is properly trained to provide exceptional service. The managers will lead the medical team to provide the exceptional service the hospital is already known for. Training will be provided on a regular basis to keep the staff constantly learning and expanding their knowledge. The staff will be expected to always demonstrate patience, sympathy, and compassion in the workplace. Substandard care is not acceptable and will not be tolerated. The company will hire the best suited people to lead the new division.

Goals

The goals of the company will remain to provide the best care possible to patients while providing affordable healthcare.

Structure

The company will follow the existing chain of command and add a new director of the new division. The company will have additional costs regarding salary of the new director. The additional cost should not affect the department as more revenue should be generated with the expansion. The duties and expectations of all employees will be clearly defined.

External Factors

Economic

The expansion will allow the company to serve more patients and generate more income. The new division will take initial funds to build the new wing and purchase equipment. Excellent opportunity to serve more patients in the community and gain the amount of people with health insurance. The company will not be able to serve patients who do not have health insurance with them. The healthcare industry is growing at a steady rate and the expansion follows the growth.

Legal & Regulatory

The company will continue to follow the current rules and regulations. The expansion should not have any different rules and regulations. The company will have to monitor the rules and regulations for pediatric healthcare to ensure it stays legal. The company should see an increase in the number of patients treated with the expansion. The company may not be notified of new laws in a timely manner. The laws pertaining to pediatric healthcare may become stricter.

Technological Analysis

The company will be able to serve patients better and quicker. The accuracy of the technology is higher. Technology can fail and a backup system will be needed. New technology is always developed. The company has the opportunity to obtain better equipment and provide better service. The private information of patients can be compromised if the right security is not obtained. Patients prefer electronic records and faster service.

Internal Factors

Leadership

The company has a high rating and with experienced management will maintain it. New employees will require training to understand the policy and procedure of the company. More employees will be able to move up in rank within the company. The new employees may not understand or know how to be a good leader. The new employees may come with bad habits from other providers. Provide training regarding leadership to the new employees.

Goals

The company will not have to set new goals. Serving more patients it will be harder to be as efficient as before. The company will be able to remain a leader in the industry and assume the top position. If the goals are forgotten the company could reduce its ranking and not provide good service. Companies want to provide better service and healthcare.

Structure

The company will follow the current chain of command and minor changes will be made. The company will have to train a new division director. With the right structure a company will be able to achieve immeasurable success. The company may have to deal with employee turnover. More people are entering the healthcare field for employment.

Business Model and Strategic Plan Part III

The balanced scorecard is essential in implementing goals for the company. The balanced scorecard aligns the activities of the business to its strategy and vision (Balanced Scorecard Institute, 2014). A company can identify the goals within four different areas, Shareholder Value or Financial Perspective, Customer Value Perspective, Process or Internal Operations, and Learning and Growth. The company will set objectives to help reach the goals. In a business short-term goals are needed to reach the long-term goals. A balanced scorecard will help to ensure these are met. The strategy of the company is how it is going to achieve goals and objectives; the scorecard defines activities to help meet the stated objectives or goals. The scorecard will list the key objectives in the different areas. Each company will have different objectives in different areas.

Financial Perspective

The company will have several objectives in this area. The company will have an increase in revenues with the added department. The company will be able to treat more patients generating more revenue. The company wants to see a 25% increase in the first year. The company will obtain a competitive advantage as the company will be able to serve more patients and provide better services than the competitors. The company will obtain market share growth as they become the leader in the industry. To become a leader in the industry and serve more people, the company will have to remain affordable and provide the best service to its patients.

Customer Value Perspective

The company knows that change is going to make it better. The company is willing to embrace change and reap the benefits from it. The company will provide better services to its patients with the new expansion. The customer satisfaction level will increase, and the company would like to see it increase by 10% or higher in the first year. The productivity of the company will also increase with the addition. The company will be able to house at least 50 more patients than it can with the current arrangements. This will allow the hospital to become more productive in making others better. The company does not want to lose its customers. It knows to make this happen, customer satisfaction is number one. If the customers are not satisfied, they will go to another provider. The company will continue to offer affordable care which will help increase the number of patients seen. The company will be able to meet goals if the customer satisfaction and retention remains high. Customers will not continue to use the company if the satisfaction is low. The company will have to ensure the level of service provided remains high to retain customers. The customer is how the company will be successful, without them the company will not survive.

Learning and Growth

The new expansion will take some adjustments but ultimately provide satisfaction to all involved. The employee satisfaction will increase, as more employees will be hired and the current employees will not be taxed as much. The employee turnover rate will decrease by 5%. The company could not give all employees the area desired to work in. The company has lost employees because some staff specialized in pediatrics and a department was not available, now it is. The technology innovations are going to be major. With the expansion comes new equipment. The company will be a leader in the industry with technology. The newest and most advanced equipment will bill used. The company values its employees and is developing new strategies to keep them satisfied. Employee satisfaction is important, if they are not satisfied, the customer service will suffer. For a company to grow, change is needed. The company will provide benefits to the customer for using its services. The company will use new technology to decrease patient wait times and improve service. The customer will have shortened wait times and certain tests performed will be faster and easier on the patient. The company’s goal is to provide better service to the patient and will do what it can to make that happen.

Communication Plan

The company will have a clearly identified strategic plan written. All employees of the company will receive a copy, and a company meeting will be held. The meeting will allow employees to ask questions regarding the plan and the plan to be discussed. All shareholders will be invited to the meeting to understand where the company plans to be within the next few years. This communication channel will allow all involved to read the plan and allow for their questions to be answered. This channel will eliminate confusion and should leave the plan clear and understandable. For the business to be successful, the plan needs to be followed. A manager will conduct follow-ups to ensure all employees are on track. The company prefers to use multiple communication channels to ensure the highest percent of people understand the message delivered. The company will determine the best way to communicate given the situation. The channel of communication may change with the different messages.

Conclusion

The new division of Kaiser Permanente will focus on the needs of children and providing services to them. The company will hold the new division to the same standards as the other divisions and expect exceptional service be provided to all patients. The company looks forward to expanding the services to children with more specialists for the children to better take care of their needs. The new division will provide more comfort and security to the children who require the services provided. A child needs to feel safe and secure and not be afraid of a doctor or hospital. The company’s goal remains to be affordable and have a high quality of service. The company will make sure the employees remain ethical and assist the communities in which it is located. The new division has a high level of expectation and will strive to be the leader in children’s services. The care will never be affected by any elements. Great care is the goal. After completing a SWOTT analysis, no major effects exist and will not change the objective. The company can adapt well to change and sees the expansion as a way to provide better services to the patients. The expansion will allow the company to serve more patients, more efficiently. The expansion will allow the company to remain a leader in the industry and possibly put the company in the top position. The analysis reassured the company that the objective is the correct way to go, and the outcome should be very positive, not only for the company but the community and the patients as well. The company has set objectives to be met to obtain the most success. Because the company has set objectives does not mean that a learning curve will not exist. The company will make adjustments as needed and work as a team to achieve the objectives. All employees will be provided a copy of the objectives, and the company will make sure everyone understands. The company will remain ethical in its practices, and patient safety will remain the top priority. The company wants to be successful and knows the actions required to do so. The company focuses on patient satisfaction and knows its employees are part of making the patients happy. The scorecard will list actions needing to be taken to meet objectives. It will give a general idea as to what needs to happen to reach the goals. The company has a good idea of what it needs to do and how to reach its goal with little negative impact on other aspects of the company.

References

Balanced Scorecard Institute. (2014). Balanced Scorecard Basics. Retrieved from http://balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/

Caldwell, S. (2014). SWOTT analysis. Retrieved from http://stephencaldwell.net/lean/swott-analysis/ IBIS World. (2014).

Medical Group Practice Management in the US: Market Research Report. Retrieved from http://www.ibisworld.com/industry/medical-group-practice-management.html

Kaiser Permanente. (2014). About Kaiser Permanente. Retrieved from http://share.kaiserpermanente.org/about-kaiser-permanente/