Healthcare organizations in the U.S can be broadly be divided into profit and non-profit firms. Healthcare as a critical concern to the society has created a conducive environment for these facilities to exist and do business on American soil. The success of these health facilities is based on their abilities to develop goals and objectives and create strategies on how to achieve these goals using the available resources. On these research projects, the aim is to develop a strategic fit and quantitative strategic planning matric for a non-profit healthcare organization.
The chosen health organization for this project is CoxHealth. CoxHealth is a six-hospital healthcare system with over 1050 beds for patients. The healthcare system is non-profit. The health care facilities under Cox's health care located in Missouri and Northwest Arkansas, serving about 25 counties. The health facility is the largest non-governmental employer, Missouri employing over 11000 people in its system ( CoxHealth, 2019) .
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Cox's health was started in 1906 in Springfield, Missouri by Ellen Bruge and was to be used as a Methodist hospital. It was named after Bruge’s honor as Burge Deaconess Hospital. However, because of financial problems, the health facility almost became bankrupt but was saved by Lester Cox, a businessman in Springfield businessman. Cox was engaged in the expansion of the facility and became a board chairman as a volunteer. After Cox died in 1968, the facility was named after him as Lester Cox Medical center. In 1993 the facility became CoxHealth. The facility continues to improve health care services in Southwest Missouri through new medical services and technology advancements ( CoxHealth, 2019) .
Cox Health has multiple health centers spread across southwest Missouri. These health facilities include Cox South, Cox North, Meyer Orthopedic and Rehabilitation Hospital, Cox Medical Center Branson, Cox Monnet, and CoxHealth Surgery Center. There are other affiliated facilities including Bones and joint center, cox health plans, and Cox Clinic at Walmart. However, because of financial problems in 2018, Cox Monett was forced to close down, but the organization vowed to reopen it in 2019 after a planned expansion.
Cooperate Mission
The cooperate mission of the Cox health organization is to improve the health of the community the organization serves through providing quality care, education, and research ( CoxHealth, 2019) . Cox's health focus is to provide the best care for the community around the organization. Besides, the health facility takes part to educate the population and support healthcare progress through research. The mission is to be achieved through values such as compassion, respect, safety, and integrity.
The Culture and the community
The CoxHealth community is massive, with over 11,000 employees across Southwest Missouri. With such a large population, the health facility has to ensure that its values, principles are demonstrated by this group. The community is made of various parties, including doctors, administrators, nurses, clinicians, surgeons, support employees, and so forth. The community's responsibility is to provide quality care to the community around its facilities. CoxHealth Community is among the best in Missouri and because of their excellent services, CoxHealth has been named top 100 best health organizations in the U.S. the community code is dedication, compassion, and respect for the patients.
CoxHealth culture is a “yes culture.” It is a concept that the Cox System has adopted in the past few years, where they have taught the caregivers to have a yes mentality. The yes culture is aimed at assuring the patients that there is hope in getting the best care. It is a friendly culture whose aim is to be compassionate to the patients and offer quality health services to the people who need them. With the "yes culture," the focus has been on three key aspects, including listening, recognition, and leader development.
The focus on listening aims at improving the coordination of the employees and the quality of care that the employees are likely to receive. Listening is a crucial driver to satisfaction. The yes culture will succeed if the employees will feel appreciated and recognized. As a result, CoxHealth has resulted in recognizing and rewarding employees through awards, recognition, rewards, and appraisals. The CoxHealth system also focuses on leadership development. The aim is to build influential leaders to help with the growth of the organization.
From a comprehensive analysis of CoxHealth culture promotes community health and well-being, work/life balance, competitive benefits for employees, community partnering, and accomplishment recognition.
Results from Competitive Analysis
CoxHealth has some competitors among them Mercy Hospital Springfield.
| CoxHealth | Mercy Hospital | |
| Company highlights | Opened in 1906 and was known as Brune Methodist hospital and it was changed in 1968 and rename the CoxHealth center, and later in 1993, it was renamed CoxHealth (CoxHealth, 2019). It is a non-profit organization. |
Opened in the year 1981 as St. John Hospital which was later named Mercy hospital Springfield in 2012. It is a nonprofit organization. Its competitive advantage is that it has served the longest in the region acquiring a significant market share and has advanced technology. It is also the only children's cancer center in the area (Mercy Hospital Springfield | Mercy, n.d.). It is ranked among the top five hospitals in Missouri by the News and world report of U.S |
| Market information | The hospital targets children, women, and cancer patients | The hospital targets cancer patients, children, people with heart conditions, sportspeople, and burn patients, among others. |
| Product information | CoxHealth offers services like cancer care, orthopedics, children care, vascular care, women's health, and neuroscience (CoxHealth, 2019). |
Mercy Hospital Springfield has specialties in burns, children's cancer, heart conditions, rehabilitation services, spine care, knee, and hip joint replacements, among others. The charges for all the patients in Mercy Springfield are usually the same though the patient's responsibilities are different depending on the plan of payment as negotiated with the insurers of each individual (Mercy Hospital Springfield | Mercy, n.d.). |
| SWOT Analysis |
Strengths Technological advancement New medical services Organizational culture The dedicated health care team Opportunities Majors in research and education Multiple branches serving many people Collaboration with other health facilities such as citizen memorial hospital. Threats Inadequate funding Competitors Instability in the insurance market weaknesses Insufficient funds |
Strengths Advanced Technology Dozens of physician specialists Good leadership Up to date equipment Large market Weaknesses Inadequate knowledge Lack of enough funds and resources Opportunities Population growth Competitor’s weaknesses Ready market Threats Competitors Economic and political uncertainties New and expensive technology and equipment |
CoxHealth offers a broader variety of services such as women's health services, wellness check-up services, Neuroscience, speech online therapy, orthopedic. The list price for most of the standard procedures that are offered in both hospitals tends to be lower in CoxHealth than it is in rival Mercy Springfield. For example, in 2013, the list price for respiratory system diagnosis with over 96hours of a ventilator in mercy was higher than in CoxHealth (CoxHealth, 2019).
CoxHealth also has advanced technology allowing it to perform excellent services in the region. It is the only hospital in Springfield hospital which has been named as the best regional hospital in Missouri, It was also the first hospital to be accredited by the DNV-GL Healthcare for quality and patient safety and has been ranked among the top 10% hospitals in the U.S for patient safety in overall care. It has also been named by the hospital review of Becker in its systems for its demonstration of innovation and coverage of the full continuum of patient care (CoxHealth, 2019). CoxHealth also has an excellent breast care center with high practice standards in personnel qualification, facility equipment, image quality, and quality assurance programs.
In cancer care, it has been recognized as among the top 100 hospitals in the United States for its excellent and safety medically. It has also been identified as the highest performing hospital in heart failure since 2016.
Technology-wise, Mercy Springfield has a mobile service called MyMercy, which is free and allows the patients to connect with the doctors, access medical information, and view test results, schedule appointments, and renew prescriptions. It also has a robotic surgical system known as Da Vinci which improves recovery time and reduces pain for patients facing surgery and a three-dimension cardiac magnetic resonance which helps view anatomic information from any angle that one desires.
Mercy Hospital Springfield has served the longest time in the region, giving it a significant market share. It is also the only cancer center or children and among the seven St. Jude Children's Research Hospital affiliates in the United States (Mercy Hospital Springfield | Mercy, n.d.). It has also been ranked number 5 in the Missouri United States and been considered one of the three and four centers of excellence for spine care and knee and hip joint replacement, respectively.
Results from Broad analysis
CoxHealth has specialized in six critical areas of healthcare, including children's health, orthopedics, heart, and vascular care, cancer care, women's health, and neuroscience. A SWOT analysis indicates that some of the strengths of the company include technology advancements, new medical services, and a dedicated healthcare team. The community and organizational culture of CoxHealth some of the internal factors that have played a significant role in the success of the organization.
As a non-governmental organization, CoxHealth's primary strategy is to serve society by providing care that is not expensive. The hospital charges are way too low compared to profit-oriented health facilities in Southwest Missouri. These strategies CoxHealth to provide charity care to the surrounding community, especially with the Children’s Miracle program that raises capital resources to help with medical care for children under the age of 18 years. CoxHealth has a strategy of regionalization, which is under the expansion plan. Under regionalization, CoxHealth is partnering with other facilities such as Citizen Memorial hospital (CMH) and acquiring other facilities.
As a health facility that is dedicated to providing quality care for fewer prices, CoxHealth is devoted to improving its Information Technology system through outsourcing and collaboration. The company has outsourced from Cerner IT Works to attain its IT goals and projections that are making management more effortless. Its devotion to cooperation with other health facilities gives the CoxHealth a chance to reach more people and provide quality care.
CoxHealth has effective governance in place in the past few years. CoxHealth effective governance has improved the process of decision making for the company enabling it to succeed in achieving its goals. CoxHealth also has succeeded in creating emergency, trauma, and Urgent care centers meant to help in addressing the emergency and urgent care needs. CoxHealth has five emergency department centers located in Springfield, Branson, Monett, and Lamar. Emergency care is supported by air care and ambulance services. The organization has two helicopters that assist with patient transportation and an advanced life support ambulance system that covers all the seven countries of Southwest Missouri at all times.
Financial statement from the past five years
| Items | 2018 | 2017 | 2016 | 2015 | 2014 | |
| Current Assets | 508,442 | 491696 | 448,151 | 447,175 | 439870 | |
| Other assets | 1225394 | 1166348 | 1121499 | 1085471 | 1025451 | |
| Total assets | 1733836 | 1,658,044 | 1,569,650 | 1,532,646 | 1465321 | |
| Total net assets | 903994 | 813485 | 712,204 | 663,916 | 611134 | |
| Current liabilities | 217965 | 201132 | 183,802 | 194,316 | 182452 | |
| Other liabilities | 311877 | 643427 | 673644 | 674414 | 657141 | |
| Total liabilities | 829842 | 844,559 | 857,446 | 868,730 | 839593 | |
| Total Net Assets and liabilities | 1733836 | 1658044 | 1569650 | 1,532,646 | 1450727 | |
| Item | 2018 | 2017 | 2016 | 2015 | 2014 |
| Revenue, gains, other support | 1,523,382 | 1,426,607 | 1,329,484 | 1,271,527 | 1,134,997 |
| Total expenses | 1,485,982 | 1,397,158 | 1,300,742 | 1,232,676 | 1,214,562 |
| Operating income | 37,400 | 29,449 | 28,742 | 38,852 | 37453 |
| Total other income | 7,770 | 45,848 | 43,927 | (32,450) | (31,230) |
| Excess of Revenue Over expenses | 45,170 (BKD CPAs&Advisors, 2018) | 75,297 (BKD CPAs&Advisors, 2017) |
72,669 (BKD CPAs&Advisors, 2016) |
6,401 (BKD CPAs&Advisors, 2015) |
6223 (BKD CPAs&Advisors, 2014) |
Over the years, the organization's total assets have been increasing, indicating that it has been expanding. The liabilities, however, have been declining for the past five years through the total of assets and liabilities have been increasing (BKD CPAs&Advisors). The organization's total expenses have also been decreasing for the five years, indicating that the organization has cut costs as much as possible hence revenue has been increasing, and so has the excess of income over expenses.
BCG Analysis
BCG Matrix Analysis of CoxHealth System
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Stars Capital Improvements This being the amount of money that is spent on technology advancement, renovations, services, and new equipment, it is usually done in order to improve the quality and safety of healthcare that the patients expect. They are expected to grow profits over time (CoxHealth, 2019). CoxHealth over time has expanded its facilities by building more hospitals in Missouri in order to improve access to health care for the people in the region. |
Question Marks Community Impact InitiativesCoxHealth contributes to the community through monetary contributions as well as through donations (CoxHealth, 2019). For example, it is said to contribute an amount of over $100,000,000 to the community every year as charity care. It also provides and raises resources to assist children under 18 years with medical care. The contributions and donations are meant to boost the reputation of the organization despite not bringing some profit. |
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Cash Cows Physician Clinics The primary care clinics owned by CoxHealth are the largest revenue earners since they are operational within the entire region. Their services are offered at upfront prices, earning some revenue for the organization. |
Dogs Charity The organization relies on fundraisers and donations. For example, it raises money worth millions of dollars in partnership with KYTV, a television station licensed in Springfield and then donate it to the miracle network program for children. |
The BCG model examines an organization for numerous divisions, single items, or even specialized case divisions. The star, capital investment requires that ventures are expanded so that the organization can earn revenue while improving services. The cash cows, physician clinics, are a source of income for the organization.
The question marks, community impacting initiatives, meant to serve the community and change their lives through contributions money-wise and through health services. Charities, a dog that provides money streams and their stores in Walmart, for example, helps individuals access urgent healthcare.
TOWS Results in Paragraph Form
TOWS stands for Threats, Opportunities, Weaknesses, and strengths ( Macchione, 2013) . CoxHealth provides quality healthcare as its goal and mission, and it is done so through their facilities. The threat facing the organization is competitors such as the Mercy Hospital Springfield who have advanced technology and a wide range of services as well. The opportunities are found in its expansion in the different counties, which is identified with its opening of Branson branch, and its intentions to partner with other health care organizations. The organization has opened children and women's hospitals to serve the women and children better as well as improve access to the people (CoxHealth, 2019). The greatest weakness of CoxHealth is its inability to provide outpatient services on mental healthcare, and it can exploit the opportunity of partnering with outpatient spiritual care providers to handle the weakness.
Strategic Fit Within the Organization and the Community
From an analytical perspective, CoxHealth is able to match its resources with opportunities in the environments. Thus an organization has to match the tangible and intangible resources with the business chances ( Chen & Liang, 2011) . For the financial resources, CoxHealth has to match its capital monetary resources with the expected opportunities. For example, a budget is created for Cox's health to help manage financial resources by matching the assets with capital needs. If the company needs to expand, then there must be a budget set aside to match the expected expansion. The company’s cash is used to provide charity to a large population, especially for groups that are not financially stable. Physical resources such as machinery, location, and plant must also meet the expected opportunities of the organization. Location of an organization addresses the issue of market access. CoxHealth location means that its primary customers and opportunity is to serve the people of Southwest Missouri. The company has six facilities, each equipped with machinery that is able to serve a large capacity with different needs.
CoxHealth has among the best medical technology in Southwest Missouri, thus attracting patients with different conditions. The technology supports the company’s goals to provide quality care and also engage in research. CoxHealth has a dedicated and compassionate workforce that aims at serving the community who needs Cox health services. As mentioned above, CoxHealth has employed over 11,000 employees in the CoxHealth system, meaning that they have invested in human resources to meet the needs of the clients. In this group, there are about 560 staff physicians in the six facilities. There are about 1700 volunteer members of Cox Auxiliaries not to mention other employees like ambulance teams. Such a large human resource population is able to meet over 1.2 million clinic visits, 250,000 ER, urgent and trauma visits, about 4500 deliveries, and about 37,000 surgeries annually. With the current plan to expand the Monett health center, CoxHealth is likely to increase the employee population to increase its capacity to serve more people. CoxHealth ‘Yes’ culture will be able to meet the needs of more patents. The organization also has a culture to support the growth of employees in all dimensions, thus improving the capacity of the human resources to serve the large patients population. CoxHealth has a good reputation in Southwest Missouri, especially because of its charity work and helping especially the community-oriented charity work for kids. The good name of the company means that it has the capacity to serve the population well.
Summation of the Strategic Plan
The CoxHealth strategic plan is to provide all-round healthcare for the community that needs health services. The long term goal is to continue providing care to the community using the available resources. The current community impact is providing medical care assistance to the population, especially kids who are under the age of 18 years. The organization also offers charity care worth $100 million per year for uncompensated medical care.
Thus the plan, therefore, is to raise sufficient funds to be able to provide charity care to the community around Southwest Missouri. Raising capital resources through continuous investment and being able to raise charity money. As a non-profit organization, CoxHealth must have a plan in place on how to raise capital to support its activities. Capital resources such as money, equipment, and human resources will play a major role in achieving the plan.
References
BKD CPAs &Advisors. (2015). CoxHealth Independent Auditor’s Report and Consolidated Financial Statements. September 30, 2015, and 2014. Retrieved from https://emma.msrb.org/ER754764-ER586837-ER988855.pdf
BKD CPAs &Advisors. (2016). CoxHealth Independent Auditor’s Report and Consolidated Financial Statements. September 30, 2016, and 2015. Retrieved from http://www.govwiki.info/pdfs/Non-Profit/MO%20Coxhealth%202016.pdf
BKD CPAs &Advisors. (2017). CoxHealth Independent Auditor’s Report and Consolidated Financial Statements. September 30, 2017, and 2016. Retrieved from
BKD CPAs &Advisors. (2018). CoxHealth Independent Auditor’s Report and Consolidated Financial Statements. September 30, 2018, and 2017. Retrieved from https://emma.msrb.org/ER1193950-ER934275-.pdf
Chen, D. N., & Liang, T. P. (2011). Knowledge evolution strategies and organizational performance: A strategic fit analysis. Electronic Commerce Research and Applications , 10 (1), 75-84.
CoxHealth (2019). About Us | CoxHealth. (n.d.). Retrieved from https://www.coxhealth.com/about-us/
CoxHealth Marketing and planning (2013, September). CHNA Implementation strategy. Community Health Needs Assessment
Macchione, N. (2013). PH 748: Health Services Competitive Strategy and Marketing.
Mercy Hospital Springfield | Mercy. (n.d.). Retrieved from https://www.mercy.net/practice/mercy-hospital-springfield/#
