Organization management is a field that permeates all industries, but it is important to recognize that application of its concepts in the healthcare sector has been practiced for only the last 25-30 years. Prior to this period, individual healthcare organizations faced fewer incentives for employing strategic management because they were typically independent, free standing, not-for-profit, and health focused. The healthcare industry has undergone significant transformations, and the evolution in management and strategic planning concepts are applicable to majority of the sector’s contexts.
In the case study, Piriz and Darr posit that Carilion clinic employs approximately 13% of Roanoke’s total population. Historically, Roanoke is known to have been a home to different communities with varying cultures. In the modern healthcare contexts, diversity issues related to culture are dominant and have the potential to negatively impact service provision. Diversity is a crucial factor in industrial organizational psychology that must be addressed through use of relevant management strategies. Workforce diversity comes with challenges such as language barriers, ethnic, gender, and cultural bias, and other forms of discrimination that may lower the value of services provided to patients. Management of services must start with the management of personnel to ensure that the organization moves in unison towards adoption of effective service provision frameworks. This will go a long way in addressing the lack of cordial relationship between the growing Roanoke community and Carilion Clinic (Piriz & Darr).
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Piriz and Darr observe that Carilion Clinic is largely involved in philanthropic objectives and has positively influence the growth of Roanoke. From the case study, it is evident that Carilion Clinic, formerly Carilion Systems, enjoyed market monopoly and was able to effectively manage its finances. The controversy stemming from the US government bid to prevent the merger between Memorial Roanoke Hospital and Community Hospital of Roanoke Valley, can be perceived as a preemptive measure to clip the clinic’s quest for market dominance. However, the modern healthcare market, like those for other industries are highly competitive due to creation of a level playing field, which owes a lot to globalization and technological developments.
The implication for Carilion Clinic is that it must adopt competitive strategies not only to remain relevant in the market, but also ensure effective management of its finances. Healthcare industry is progressively leaning towards profiteering, implying that in addition to management of services, organizations must strategize the management of their finances in relation to the scope of their revenue and expenditure. Singh and Wheeler (2012) observed that the healthcare industry is transitioning to new models of reimbursement, new structures of care delivery, and new responsibilities in community health maintenance. Carilion as a major employer is also experiencing pressure to lead and influence economic growth and development in its market regions. Such external forces shape the organization internal processes and priorities in relation to efficiency, administration, patient outcomes, and corporate social responsibility. Therefore, effective financial management frameworks are a necessity to ensure the organization accomplishes its objectives. This especially important given that Carilion Clinic has been embroiled in financial mismanagement and products and services pricing before.
Piriz and Darr largely refer to the Mayo Clinic template of vertical integration in the American context. The conclusion that can be drawn from this is that Carilion Clinic is undergoing transformation in restructuring its structures to reflect the settings in which it currently operates. Carilion Clinic first attempt at vertical is evident through the merge of hospitals in Roanoke in 1988. However, the current environment dictates organization to do more. According to Albrechts (2010), more of the same thing is not enough. Modern organizations are faced with a myriad of challenges including environmental crisis, financial crisis, energy crisis, and the resultant economic crisis. Therefore, strategic planning is necessary to facilitate development of sustainability frameworks in the wake of such challenges. It is evident that the organization is interested in learning from successful stories. Under the circumstances, it is imperative to seek services of qualified professionals to drive the strategic planning process.
References
Albrechts, L. (2010). More of the same is not enough! How could strategic spatial planning be instrumental in dealing with the challenges ahead? Environment and Planning B: Planning and Design , 37 (6), 1115-1127.
Singh, S. R., & Wheeler, J. (2012). Hospital Financial Management: What Is the Link Between Revenue Cycle Management, Profitability, and Not ‐ for ‐ Profit Hospitals' Ability to Grow Equity? Journal of Healthcare Management , 57 (5), 325-341.
Swayne, L. E., Duncan, W. J., & Ginter, P. M. (2012). Strategic management of health care organizations . John Wiley & Sons.
