MHA FPX 5012 Asessment 1 Organizational Analysis

Student Name

Capella University

MHA-FPX 5012 Organizational Leadership and Governance

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Date

Home Health Agency United States Organizational Analysis

Healthcare is an essential aspect of people’s lives. The government has developed various strategies to ensure efficient healthcare delivery to patients, establishing national, state, and local agencies. The mission of Home Health Agency (HHA) is to serve individuals and groups in the community to reduce disabilities and illnesses. Through quality therapeutic care, the organization provides services and motivation to disabled and chronically ill individuals, as well as special groups, to help them lead a “wholesome” life. This report aims to analyze the company’s strategic position using several techniques, including SWOT analysis, PEST analysis, gap and weakness analysis, and a balanced scorecard. The objective of this analysis is to gain a competitive advantage in the healthcare industry and to develop a viable strategy for improving organizational outcomes and decision-making.

To identify the strengths, weaknesses, threats, and opportunities, a SWOT analysis of the organization was conducted, as recommended by top executives. The organization also assisted its managers in implementing a balanced scorecard, which facilitated communication of the operational strategy and encouraged the sharing of new ideas for improvement. The balanced scorecard serves as a crucial tool for the organization’s leaders to analyze and evaluate outcomes while providing guidance and support to employees and team members to meet future demands. Conducting a gap analysis will involve considering financial aspects and other marketing and finance options to optimize the company’s profits and processes.

PEST Analysis of the Organization

Utilizing a PEST analysis is advantageous for the organization to review various components that influence the future of the healthcare firm in the United States. This analysis will assist leaders and key stakeholders in planning actions that benefit the surrounding community (Miura et al., 2021). The PEST analysis breaks down market research into four components: political factors, economic factors, sociocultural factors, and technological factors. This analysis ensures that the healthcare strategy aligns with community needs by providing vital insights into these individual factors.

Political Factors Economic Factors

Growing regional competition can negatively impact revenue.
Neglect of the healthcare sector by policymakers can adversely affect costs.
Political instability leads to frequent changes in healthcare directors and their plans.
Government financial corruption can negatively impact the organization’s revenues.
Political sanctions may limit equipment imports.
Improved payment system infrastructure.
Enhanced tariff structures.
Rising inflation rates in the healthcare sector in the U.S.
Increased drug costs due to currency fluctuations.
Positive market economic growth.

Socio-Cultural Factors Technological Factors

Rapid population growth can lead to overcrowding and increased costs.
The rise of chronic illnesses is causing increased costs and instability.
Lower physical activity among digital nomads contributes to employee burnout.
Higher poverty levels place financial and service quality burdens on healthcare organizations.
High rates of divorce, crime, and violence in America can increase workload and illnesses.
The use of telehealth has improved home care.
Electronic medical records (EMR) have enhanced work quality and data safety.
Videoconferencing has improved remote psychotherapy and hypertension sessions for elderly and disabled patients.

SWOT Analysis

The SWOT analysis aims to evaluate the strengths, weaknesses, opportunities, and threats faced by the organization. The Home Health Agency (HHA) has been operational since 1988 and is well-known within the community. It is also a Medicare-certified organization; however, it faces challenges in providing Medicare home visits and financial burdens. On a positive note, the organization has ample funds available, which is a promising sign. Additionally, the company has the potential to develop and enhance emergency response services.

The findings indicate that macro-environmental factors affect the organization in various ways. Changes in disease patterns and tariff structures necessitate the organization’s reliance on technology to better manage diseases. This approach would empower patients to participate in decision-making processes. Interconnected social factors, such as adverse lifestyles and rising poverty in the United States, further complicate the situation (Martins, 2018). Due to a lack of physical activity, the frequency of chronic diseases is likely to increase over the next decade. Therefore, healthcare professionals must transition from volume-based services to value-based services. Efficient allocation of the budget can help reduce disparities in the emergency department. However, assessing appropriate technology is crucial for improving the overall health of individuals.

Strengths

The organization has been continuously operating since 1988 (over three decades).
It has a positive reputation within the community.
It is the only Medicare-certified organization in the area.

Weaknesses

Lack of educational resources to inform the public about Medicare.
Financial burdens due to rising gasoline costs.
A large number of elderly employees.

Opportunities

Availability of funds for counseling patients on diet and nutrition.
Insurance companies are interested in collaborating with this organization due to its commitment to home care.
The stability of emergency response services is a positive indicator.

Organizational Scorecard Template

The connection between measurement and a strategy map, along with the measurement system, enhances the role of non-financial measures within the organization, thereby elevating its strategies and evaluating performance (Kaliappen, 2018). The balanced scorecard of the organization includes several measures that should not be overlooked, particularly those that focus on patient satisfaction. Customer perspectives reveal how they perceive the organization in terms of performance, often evaluating healthcare firms based on costs, time, and quality. Additionally, financial measures are crucial to include in the scorecard, as they reflect the economic consequences of actions planned by leaders to enhance organizational strategy. This may encompass cash flow generation, operating income, or daily cash on hand. The objective is to measure the organization’s revenue growth and promote cost leadership. To address training and education skill gaps, organizational leaders must devise strategies to invest more in reskilling employees through effective training and education, aligning them with the firm’s mission.

The suggested performance measures include conducting a gap analysis of employee training twice a year and securing additional financial resources from federal and state government authorities. Developing improved financial management systems may involve performing monthly system audits within the hospital. Furthermore, professionals should focus on providing counseling-based preventative care, enabling nurses to collaborate with psychotherapists at the diagnostic stage, which can facilitate earlier patient discharge (Hedvičáková, 2019). This scorecard aims to deliver efficiency improvements for the organization, which can be quantified through figures and statistics as illustrated in the table. Lastly, learning and development metrics indicate how much the company learns and improves to achieve its long-term vision.

Business Operations EHR service delivery gap is 29%. 10%

Customer Near Miss issues reported 80%Medication errors despite automation 24% 100%0%

Organizational Learning and Growth Adopt wearable technologies 50%Using robots 5%Implement trainings on safety standards (once in 3 months) 80%30%

Gap Analysis Template

The following gap analysis of the hospital is based on evidence-based recommendations for enhancing organizational performance in the U.S. financial sector. For instance, Lim et al. (2018) suggest that improving business operations and financial performance begins with collecting and leveraging the right data and automating processes wherever possible within the healthcare organization. This approach implies that our organization can equip employees with tools to effectively gauge customer and stakeholder satisfaction. This model has also been applied in various industries, including hotels, service agencies, and banking organizations. Due to its flexibility, it can be readily adapted to any service industry. Additionally, the evidence-based study by DEMİRKOL (2022) recommends integrating existing systems with automation to alleviate financial pressures on managers. This study also addresses the gap in service quality that arises when patient expectations regarding service quality differ from their actual perceptions.

The author emphasizes that organizations must prioritize customer needs and actively seek feedback regarding their services. The hospital has made significant improvements over the past decade, such as enhancing the quality of food provided to patients and implementing large name tags. The organization has also installed more information desks and improved communication through radios and walkie-talkies. Quality procedures have been established to foster greater empathy among staff. However, patients have expressed dissatisfaction regarding communication and a perceived lack of empathy from professionals. For instance, customers expect to speak with someone on the phone within a maximum of ten rings. Meeting this standard requires managers to redefine service quality and align it with customer expectations (Dayanara et al., 2022).

MHA FPX 5012 Asessment 1 Organizational Analysis

The organization employs Key Performance Indicators (KPIs) as discrete measurements to assess the effectiveness of its daily operations. These performance indicators will assist leaders in identifying gaps and developing operational strategies to address them (Crotts et al., 2022). Like other businesses, the hospital relies on its professionals to provide services to patients. The hospital must operate sustainably and reduce costs. Financial performance indicators offer visibility into areas requiring improvement concerning financial costs, which are critical for minimizing patient readmissions. Similarly, the table illustrates gaps in business operations, financial operations, and customer satisfaction that need to be addressed to achieve a sustainable competitive advantage (Candido & Elleri, 2021).

The core and essential leadership competencies in nursing are discussed in the study by Narayanan et al. (2000), which asserts that establishing “partnerships” enables nurses to coach other employees and teach managers financial and operational management skills. Additionally, Friends et al. (2020) highlight that the most critical nursing leadership skills encompass visionary thinking, strategic influence on teams, charisma, motivation, passion, empathy, humility, and change management. For example, empathy and communication are primary competencies for nurses, allowing them to deliver client-focused services and instill confidence in customers through their compassionate behavior. Similarly, humility and change management empower managers to make effective decisions by respecting all individuals, thereby enhancing operational efficiency. These competencies contribute to organizational success by fostering a culture of empathy and passion, which boosts employee morale and encourages long-term commitment to the organization. Passion and effective communication also enhance team cohesion, enabling coworkers to collaborate harmoniously and reduce conflicts.

Category Performance Indicator & Measurement Target or Internal Benchmark Identify the Variance or Gap

Business Operations Average treatment cost is $2,607 per dayUse of medical equipment $200,000Bed occupancy rate 90.1% $2,000$175,00075% $607

$25,000

$15.1%

Finance Readmission rates are 82%Cash on hand is $55,000Staff salaries are $310,000Collection costs are $5,000 65%$70,000$300,000$4,500 -17%

$15,000

-$10,000

-$500

Customer Overall patient satisfaction 69%Waiting time 83Family and friends’ satisfaction is 88 82%88%83% 13%5%-5%

Organizational Learning and Growth Training cost per employee $4,000 $3,000 -$1,000

Conclusion

The environmental and SWOT analysis of the organization indicates that employees and nursing leaders must enhance their skills and leadership competencies to achieve desired outcomes. Skills such as passion, motivation, empathy, dignity, and value creation will empower nurses to become effective leaders and bridge the gap between desired achievements and actual results. By developing leadership skills, staff can improve both operational and financial performance, balancing community needs while providing essential insights to enhance market research.

References

Baird, K. M., Tung, A., & Yu, Y. (2019). Employee organizational commitment and hospital performance. Health Care Management Review, 44(3), 206-215.

Candido, R., & Ellero, A. (2021). The implementation of a new KPI in the hospitality industry during economic crisis. Co-Editors, 42.

Crotts, J. C., Magnini, V. P., & Calvert, E. (2022). Key performance indicators for destination management in developed economies: A four-pillar approach. Annals of Tourism Research Empirical Insights, 3(2), 100053.

Dasandara, M., Dissanayake, P., & Fernando, D. J. (2022). Key performance indicators for measuring performance of facilities management services in hotel buildings: A study from Sri Lanka. Facilities.

Lim, J., Lim, K., Heinrichs, J., Al-Aali, K., Aamir, A., & Qureshi, M. (2018). The role of hospital service quality in developing the satisfaction of the patients and hospital performance. Management Science Letters, 8(12), 1353-1362.