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Strategic Management in Healthcare

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Submitted By AswaniJunia
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Executive summary
Strategic management is the process in which the top management in a company or organization formulates and implements major goals on behalf of the company owners. This is mainly done by consideration of the resources available at the organization’s disposal and the internal and external environmental factors under which the company exists and competes with other companies (Cole, 1997). For the healthcare providers that are facing financial challenges in the sector, consolidation and cooperation seems to the new way out. Various healthcare providers throughout New Yolk city are merging with other healthcare providers so as to ensure that they survive the harsh economic times. However consolidation was not only for the hospitals but physicians and other groups within the healthcare sector were also expected to merge in order to survive ('market overview', 2013). Others are also opting for other means to ensure accountability in the sector. These measures include bundled payment programs and patient-centered medical homes.
Other large healthcare facilities are also shifting from inpatient health services to ambulatory care facilities so as to diversify their services and stay ahead of competition. Due to the introduction of New Yolk state’s health insurance exchange, approximately 1 million state residents were expected to enroll. However by early December 2013 approximately 90,000 residents had enrolled. This was a clear indication of the positivity healthy insurance plan had been received by the state residents. Employers were now shifting he cost of health insurance to workers with additional implementation of high deductible health plans. This move was predicted to have a decrease in the refilling of prescription drugs by consumer (Ginter, Duncan, & Swayne, 2013).
Situational Analysis
Dr. Louis has witnessed mergers and acquisition continuing

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