Running Head: UNIVERSITY OF MICHIGAN STRATEGIC PLAN 1
University of Michigan Strategic Plan
Team Three’s Name: The Planners
Lisa Whitlatch, Leonard Jones, Robyn Wright, & Nicole Smith
Siena Heights University
Southfield, Michigan
May 24, 2015
University of Michigan Strategic Plan
Background and Overview of the Organization
“The University of Michigan Health System is known nationally and around the world for excellence in patient care, education and research (U of M Health, 2015, para. 1).” U of M Healthcare has been recognized for multiple patient care specialties as well as additional public awards including: National Hospital Rankings and voted among America’s Best Doctors. U of M Healthcare was recognized as a top employer to work for in addition recognized for their research and education (U of M Health, 2015).
The University of Michigan Health System has been a forefront of medicine since the 1800s. In 1817, the University of Michigan was founded, and in 1848, the University of Michigan Medical School was formulated; opening their doors in 1850. In 1869, U of M Healthcare opened its first university owned medical facility in the United States; 20 bed hospital, no wards, and no operating rooms. Years after opening more pavilions were added on to the hospital, and a four-year medical school was adopted and introduced. In 1900, U of M became the largest teaching hospital in the country and then different department specialties were introduced (U of M Health, 2015).
U of M Healthcare system offers a wide range of services that range from basic science to disciplinary departments and programs. Interesting facts about U of M Healthcare is that:
Our patient care: Our 3 hospitals, 40 outpatient locations with more than 120 clinics, and extensive home care operation handle 1.9 million visits, more than 45,000 hospital stays in 993 beds, and much more each year; Our education: Both our Medical School and School of Nursing are highly ranked, and train thousands of tomorrow’s medical & science professionals; Our research: Our $466M research budget - - one of the nation’s largest – allows us to find new ways to understand, diagnose, treat, manage and prevent many human diseases; and Our financial performance: We’re strong and growing, with a total operating budget of more than $3.3 billion (U of M Health, 2015, para. 2).
U of M Healthcare holds multiple accreditations for all of their facilities including the approval from Joint Commission, which accredits and certifies a health care centers by recognizing them nationwide as a symbol of quality that the organization commits to and meets specific performance standards (The Joint Commission, 2015).
U of M Healthcare is dedicated to serving not only their community but also many other communities in Michigan including all the way up to the Upper Peninsula; even beyond state borders.
We provide more than $429 million worth of community benefit services each year, including more than $257 million in charity care and other uncompensated and unreimbursed care from our hospitals and health centers, as well as $172 million worth of training, research, outreach and more (U of M Health, 2015, para. 4).
Directional Strategies
Our directional strategy for the University of Michigan Healthcare consists of a broad range of strategies from primary direction, growth, stability, all the way to retrenchment. Our basic direction consists of our four fundamental goals of the organization; our mission, vision, value, and goals listed in detail below. Our approach is to achieve our goals by focusing on these key elements. We want to introduce more products, improve overall performances including turnaround times as well as other business measures that are associated with profit gain.
The stability at U of M that we currently hold will be maintained along with improved patient outcomes. Within reasonable steps in our reliable market, we want to improve our return on investments (ROI) in areas such as medical imaging and many other targeted areas. We plan to continue to control growth by adjusting to alterations in the market and adapt to change as needed. Retrenchment is important to our organization because we want to continue to improve employee performances and increase patient satisfaction. To control finances, we plan on outsourcing critical business functions including billing and coding to the professionals who are well trained and can handle such a workload. In return, we expect this to regain additional stability and strength towards an advantage within our competitive market while maintaining our exclusive reputation.
Every quarter our board of directors and trustees at the University of Michigan will meet to discuss and evaluate several key elements and components pertaining to the organization as a whole including:
Are we not doing some things now that we should be doing and vice versa? Are we doing some things now that we should do but in a different way? Are our strategic goals moving us towards the achievement of our mission and vision? Do our values fit the needs of our stakeholders? Do our fundamental values make sense? Have we addressed all critical successful factors? (Ginter, et al, 2013, p.197).
By discussing each element in detail, this gives everyone the chance to direct communication to be able to discuss any underlining issues freely in detail and invites clarification on a solid conclusion for the organization.
University of Michigan:
Original Mission- The mission of the University of Michigan is not only to serve the people of Michigan but all around the world through the highest quality of care and health services available; to provide the means to promote wellness and maintain the community’s health by demonstrating social responsibility through the hospital’s resources and committed to superior patient safety practices
Strategic thinking map: 1) Target customers and clients: Not only the people from Michigan but all around the world; 2) Principle services delivered: Offering all healthcare related services to be conducted internally; 3) Geographical domain of the services offered: To provide care beyond the borders of our own community; 4) Specific values: Demonstrating social responsibility to the public; 5) Explicit philosophy: To keep all of our patients safe through our superior patient safety practices.
Revised Purposed Mission: The mission of the University of Michigan is not only to serve the people of Michigan, but around the world as well by providing and delivering the highest quality of care possible while offering all health related services internally. The University of Michigan is distinctive because we will provide the means to promote wellness and maintain the community’s health and beyond by demonstrating social responsibility through the hospitals resources to be committed to superior patient safety practices.
Original Vision- To be recognized for exceptional healthcare of all modalities and services; to create a caring environment in which our patient’s needs are respected and valued; maintains an environment that promotes satisfaction and opportunities for our employees, medical staff, and patients, and continuous quality improvement.
Strategic thinking map: 1) Clear hope for the future: In five years from now gain additional clientele from all over and to become more profitable by gaining additional equipment and services. 2) Challenging and about excellence: Promote satisfaction and opportunities for our employees while making memorable experiences for our patients. 3) Inspirational and emotional: We want to create a very caring and comfortable environment. 4) Empower employees first: To empower our employees, become the culture that we believe in and practicing this daily. 5) Memorable and provides guidance: Keywords: Respect and Value.
Revised Purposed Vision: Our clear hope for the future is to be recognized by our patients, employees, and owners through memorable experiences for exceptional healthcare of all modalities and services; to empower our employees to create a caring and comfortable environment in which our patient’s needs are respected and valued; maintains an environment and culture that promotes satisfaction and opportunities for our employees, medical staff, and patients, and continuous quality improvement.
Values- The hospital will operate while promoting the highest professional and patient care standards with all patient encounters, medical staff, and employees; provides a positive environment that promotes and rewards quality care and high customer satisfaction. Our core values that will tie in this practice are Compassion; we care for others, Respect; we respect others, Diversity; we do not discriminate, Integrity; we are trained professionals, and Ethical; we do what is right.
Goals- Continue to be nationally and regionally recognized for the services, as well as the quality of care provided. We want to be the health care provider of choice not only locally but nationwide. We also plan to continue to strive for patient safety and satisfaction through a talented staff that is caring, committed, and compassionate. We want to maintain our high ethical standards and behavior practices while remaining cost-effective to stay profitable. At the same time, we want to keep our competitive advantage by keeping our patient experience the best it could be while treating them with the best equipment offered and with highest technology available. Our growth goals for the future also consists of adding additional services in such as newer and updated medical equipment with a particular interest in the field geriatric radiology; adapt to patient volume and growth along with other ancillary services to provide the quality of care that is expected and accommodate to all patient needs.
External Environment Analysis of the U of Healthcare System
The world has been experiencing changes in consumer behavior and preferences. Sudden changes can have a major effect on organizations. Most organizations have learned to adapt to the changes, and by doing so ensuring their continued survival. For one, the United States has been experiencing changes in population growth, emphasis on safety, age distribution, and career attitudes. The changes have affected the products and services rendered by organizations. For instance, changes in career attitudes have affected the jobs offered by the University of Michigan Healthcare system. Specifically, U of M healthcare ensures that its courses are in line with the current career needs of people (James, 2012).
Changes in age distribution also affect the products offered by organizations such as the University of Michigan Healthcare. They ensure that their products are age appropriate. Failure to provide the same goods can lead to the organization offering the wrong product or products that will not enable them attract the highest number of customers (James, 2012).
Year / Under 18 Years / 18-44 Years / 45-64 Years / 65 Years & OlderNumber / Percent / Number / Percent / Number / Percent / Number / Percent
2013 / 2,245,201 / 22.7% / 3,393,506 / 34.3% / 2,769,322 / 28.0% / 1,487,593 / 15.0%
2012 / 2,269,365 / 23.0% / 3,393,649 / 34.3% / 2,776,922 / 28.1% / 1,442,583 / 14.6%
2011 / 2,299,116 / 23.3% / 3,397,181 / 34.4% / 2,789,887 / 28.3% / 1,388,405 / 14.1%
2010 / 2,333,121 / 23.6% / 3,409,315 / 34.5% / 2,767,147 / 28.0% / 1,366,566 / 13.8%
2009 / 2,372,603 / 24.0% / 3,449,020 / 34.8% / 2,736,345 / 27.6% / 1,343,623 / 13.6%
2008 / 2,418,879 / 24.3% / 3,507,576 / 35.3% / 2,699,413 / 27.1% / 1,321,021 / 13.3%
Equally, organizations have also been dealing with increasing population growth. An increase in population increases the demand for the products and services rendered by organizations. This suggests that organizations have to increase the supply of the products to meet the increasing demand. Equally, organizations have to deal with aging population. This also affects the products rendered in the market. Similarly, it affects their ability to access the talent required to serve consumers (Bess & Dee, 2012).
The University of Michigan Healthcare Systems has also been affected by the above factors. Essentially, the management ensures it considers the same when positioning to serve its target consumers in the desired manner (Bess & Dee, 2012).
Economic Factors
There are a number of economic factors affecting the University of Michigan Healthcare Systems. For one, the university health system is affected by the economic growth in the country. Little economic growth affects the hospitals ability to deal with its expenses. Equally, it affects patient’s ability to pay for their hospital bills. Many employees may have the desire to join the University of Michigan Healthcare system. However, a weak economy hinders one from realizing their dream. Low economic growth reduces the number of employees from entering the health system every year (Bess & Dee, 2012).
The University of Michigan Healthcare system is also affected by interest rates and inflation rates. High inflation rate affects the price of good and services rendered by different companies and organizations. In the same regard, the fact that the U of M Healthcare also deals with international patients, which means that it also deals with the issue of exchange rates. Fluctuating exchange rates can either increase or reduce the cost incurred by foreign patients when they seek medical attention (Bess & Dee, 2012).
Likewise, interest rates keep on changing. Interest rates normally affect the cost of capital. The cost of capital increases with an increase in interest rate and vice versa. For instance, high interest rates make it hard for patients to receive a lower cost for treatment. (Bess & Dee, 2012).