STRATEGIC MANAGEMENTOF STRATEGIC MANAGEMENTOF HEALTH CARE ORGNIZATIONHEALTH CARE ORGNIZATION

CHAPTER (8) PRESENTATION;CHAPTER (8) PRESENTATION;

TOPICTOPIC:-:-VALUE ADDING SERVICE DELIVERY VALUE ADDING SERVICE DELIVERY

STRATEGIES STRATEGIES

IBRAHIM ZUBAIRU ABUBAKARIBRAHIM ZUBAIRU ABUBAKAR ----------------------------------------------------------

CHAPTER (8) PRESENTATION;CHAPTER (8) PRESENTATION;

TOPICTOPIC:-:-VALUE ADDING SERVICE DELIVERY VALUE ADDING SERVICE DELIVERY

STRATEGIES STRATEGIES

IBRAHIM ZUBAIRU ABUBAKARIBRAHIM ZUBAIRU ABUBAKAR ----------------------------------------------------------

INTRODUTIONINTRODUTION DEVELOPING STRSTEGIESDEVELOPING STRSTEGIES

EXPANSIONSCOPE

REDUCTIONSCOPE

MAINTENANCESCOPE

MISSIONVISIONVALUEGOAL

PURCHASEE.g. productionDevelopmentCOORPERATE

MergerJoint venture

DEVELOP-MENT

Internal Devt.

STRATEGICPOSTUREPOSITIONINGMARKET SEGMENT

SERVICEDELIVERYSERVICESUPPORTACTIONPLAN

Directional Adaptive

Market entry Competitive

Implementation

Implementation Strategies' are directed toward value adding services & value adding supportImplementation Strategies' are directed toward value adding services & value adding support

Reasons for adding valuesReasons for adding values Because of the Because of the competition competition and and

complexitycomplexity in the marketplace, the in the marketplace, the health care provider must add value in health care provider must add value in order to survive the value chain consist order to survive the value chain consist of;-of;-

Value adding service delivery Value adding services support

IMPLEMENTATION STRATEGIESIMPLEMENTATION STRATEGIES

Value chainValue chain Are primarily operational & market orientedAre primarily operational & market oriented

Value added service delivery Value added service delivery strategiesstrategies

-Follow-up Clinical

-MarketingBilling

-Follow-onClinical

-Marketing

-Market & market research-Target market

-Branding-Distribution/logistic

-Promotion

-Clinical operations Quality

-Process innovation-Marketing

-Patient satisfaction

Pre-service Point of service

After-service

Matching—to the strategies/maintaining activities

VALUE ADDING SERVICE DELIVERY VALUE ADDING SERVICE DELIVERY STRATEGIES STRATEGIES

• Value adding service delivery strategies Value adding service delivery strategies translate translate the the directional, adaptive, market entry and competitive directional, adaptive, market entry and competitive strategies into strategies into action action as a critical component of the as a critical component of the value chainvalue chain

• Attempt to Attempt to repositioningrepositioning health care organization in health care organization in the environment to create new competitive advantagethe environment to create new competitive advantage

• Value added service delivery strategies are critical to Value added service delivery strategies are critical to the success of the organization because they are the the success of the organization because they are the principal methods for creating valueprincipal methods for creating value. Therefore, . Therefore, explicit strategies must be developed for eachexplicit strategies must be developed for each

VALUE ADDING SERVICE DELIVERY VALUE ADDING SERVICE DELIVERY STRATEGIES STRATEGIESThe components must be coordinated and work in The components must be coordinated and work in

concert. It is the role of strategic managers concert. It is the role of strategic managers responsible for developing and managing the responsible for developing and managing the strategic plan to ensure their Compatibilities. Value strategic plan to ensure their Compatibilities. Value adding service delivery strategies include:-adding service delivery strategies include:-

• Pre-servicePre-service• Point-of-service, andPoint-of-service, and• After-service strategiesAfter-service strategies

PRE-SERVICE ACTIVITIESPRE-SERVICE ACTIVITIESEntails the Entails the planningplanning and and activitiesactivities that enable the that enable the

organization to determine its organization to determine its customerscustomers and the and the servicesservices that will be that will be offeredoffered to them as they enter the system Pre- to them as they enter the system Pre-service marketing include:-service marketing include:-

1- 1- Market and marketing researchMarket and marketing research 2- Design services 2- Design services 3- Brand3- Brand 4- Price 4- Price 5-Distribution/logistics5-Distribution/logistics 6- Promotion 6- Promotion

Marketing and market Marketing and market researchresearch 1- Market and marketing research1- Market and marketing research

enables the organization to determine the enables the organization to determine the appropriate customers (target market) & appropriate customers (target market) & type of services to delivers by;-type of services to delivers by;-

• a - Gathering data about the market itself a - Gathering data about the market itself • b - Potential customersb - Potential customers• c - Their want and needs & what will c - Their want and needs & what will

satisfy themsatisfy them• d -customers habit in term of health cared -customers habit in term of health care

2- Design service2- Design service2- Design service2- Design service that will provide that will provide

satisfaction to them satisfaction to them • a- Consumersa- Consumers• b- Physiciansb- Physicians• c- Friendsc- Friends• d- Families and to included- Families and to include Multiple service Multiple service categories categories such as- such as- • a- Long term carea- Long term care• b- Emergency medication or segmentation b- Emergency medication or segmentation

(a recognizable group that makes your (a recognizable group that makes your market as target market)market as target market)

BrandBrand• 3- Branding represents three things3- Branding represents three things:-:-• a- what an organization offers to the market?a- what an organization offers to the market?• b - What organization does?b - What organization does?• c- What organization is?c- What organization is? • It implies trustIt implies trust• - Consistency - Consistency • - Defined set of expectation- Defined set of expectation• - It sets promise- It sets promise• Strong brands have a unique position in the Strong brands have a unique position in the

mind of the buyer and can be usually mind of the buyer and can be usually articulatedarticulated

PricePrice 4- Pricing4- Pricing: - : -

• Moderate price strategy must be Moderate price strategy must be selected carefully because is very selected carefully because is very difficult to determine price and difficult to determine price and consumers don’t have the ability to consumers don’t have the ability to judge quality judge quality

Distribution/logistic;-Distribution/logistic;- 5- Distribution/logistic;-5- Distribution/logistic;-• a- Location of health care provider will a- Location of health care provider will

impact the number of people to seek the impact the number of people to seek the service because people don’t want to travel service because people don’t want to travel great distancegreat distance

• b- Demographic studies of the population b- Demographic studies of the population are important part of choosing location 4 are important part of choosing location 4 facilitiesfacilities

• c- Satellite offices & hospital branches are c- Satellite offices & hospital branches are importantimportant

• d- Convenience factors drives people ind- Convenience factors drives people in• c- Mobile unitc- Mobile unit

PromotionPromotion:-:- - a- Advertisements- a- Advertisements

• b- Public relation events b- Public relation events

• c- Personal selling’sc- Personal selling’s

• d- Sales promotionsd- Sales promotions

• e- Contests participation in trade e- Contests participation in trade showsshows

Point of servicePoint of service 2- Point of service2- Point of service: -is oriented around : -is oriented around

patient care and delivery (clinical), market patient care and delivery (clinical), market activities, market study in order to suggest activities, market study in order to suggest good manner in health care delivery good manner in health care delivery

1- Point of service clinical operations1- Point of service clinical operations 2- Point of service marketing2- Point of service marketing 3- Clinical innovation3- Clinical innovation 4- Marketing4- Marketing 5- Patient satisfaction 5- Patient satisfaction

Point of service clinical Point of service clinical operations:-operations:-

1- Point of service clinical operations:- 1- Point of service clinical operations:- • a- Intensive care required, such as acute a- Intensive care required, such as acute

illness with quick recovery, significant illness illness with quick recovery, significant illness (chronic but manageable) & catastrophic (chronic but manageable) & catastrophic illness –AIDSillness –AIDS

• b- Mass customization (is a way of capturing b- Mass customization (is a way of capturing customers by friendly benefit of long term customers by friendly benefit of long term physician –patients relationship)physician –patients relationship)

• c - Quality operation must be maintained c - Quality operation must be maintained owing to the media report that 98,000 deaths owing to the media report that 98,000 deaths yearly due to medical errorsyearly due to medical errors

Clinical innovationClinical innovation 2- Clinical innovation2- Clinical innovation

• - Expects organization to come-up - Expects organization to come-up with entirely new ways, systems or with entirely new ways, systems or ideas to improve patient careideas to improve patient care

• -Achieving high performance via -Achieving high performance via mode of operationsmode of operations

Point of service Point of service marketingmarketing 3- Point of service marketing:-3- Point of service marketing:-• a- Redesigning service lines around by a- Redesigning service lines around by

enhancing the patient experiences rather than enhancing the patient experiences rather than the financial aspects of delivering carethe financial aspects of delivering care

• b- Multi-specialists, physician care teamb- Multi-specialists, physician care team• c-Increase physician patients' communicationsc-Increase physician patients' communications Matching point of service to the strategy Matching point of service to the strategy • Quality Quality • Efficiency Efficiency • Speed Speed • Innovations and Innovations and • Flexibility Flexibility

After service activitiesAfter service activities

(Back office strategies) (Back office strategies)This is the final contact customer has This is the final contact customer has

with the health care organization or with the health care organization or next appointment for further service is next appointment for further service is built for customer satisfaction:-built for customer satisfaction:-

1- Follow –up (both clinical and 1- Follow –up (both clinical and marketing)marketing)

2- Billing activities2- Billing activities 3- Follow –on3- Follow –on

(Both clinical and marketing)(Both clinical and marketing)

Follow –up activitiesFollow –up activities 1- Follow –up activities1- Follow –up activities (caring & (caring &

concerned)concerned)

• a- Calling out patient to ask if everything is a- Calling out patient to ask if everything is going as expected or whether additional going as expected or whether additional prescriptions are neededprescriptions are needed

• b- Patients’ satisfaction studies to b- Patients’ satisfaction studies to determine how she or he was treated can determine how she or he was treated can save pain, complications & unnecessary save pain, complications & unnecessary anxiety anxiety

• C- Follow-up says to customer “C- Follow-up says to customer “we care”we care”

Billing activitiesBilling activities Billing activities describe customers Billing activities describe customers

decision whether value receive or not decision whether value receive or not

-Redesigning billing process reduced -Redesigning billing process reduced consumer complaints from about 30 consumer complaints from about 30 percentpercent

• Avoid billing error Avoid billing error

• Address complaintsAddress complaints

• Explain service chargesExplain service charges

• Use medical terminology that patients Use medical terminology that patients understandunderstand

Follow-on activities;-Follow-on activities;- Follow-on activities; - is the last Follow-on activities; - is the last

stage include nursing home, care stage include nursing home, care arrangement after hospitalization arrangement after hospitalization

It identifies failure and rectify It identifies failure and rectify immediately immediately

• a- It gives room for further servicesa- It gives room for further services

• b- It gives chance for further check up to b- It gives chance for further check up to make sure the problem is no longer make sure the problem is no longer presentpresent

• c- It gives additional carec- It gives additional care

Conclusion

Finally, follow up can cement or destroy a good customer relationship

THANKS for LISTENINGTHANKS for LISTENING

Conclusion

Finally, follow up can cement or destroy a good customer relationship

THANKS for LISTENINGTHANKS for LISTENING