Hcs 586 - Strategic Plan

Strategic Plan Part I-Organizational Structure

Jennifer Tenorio

HCS 586

September 30, 2013

Professor Laura Newton

Organizational structure is critical to the implementation of a strategy plan. This paper will review the organizational structure of ProCare Health Plan and determine if the mission, vision, and values coincide with strategic plan to move towards success. ProCare Health Plan (PHP), Inc. is a subsidiary of Vanguard Health System, Inc. (VHS). Nationwide, VHS aspires to lead the health care industry in delivering compassionate, quality care effectively and strategically. In 2010, the Detroit Medical Center (DMC) Board of Trustees and VHS announced the signing a letter of intent to become part of the VHS system; by the end of 2010 the sale of DMC to VHS was complete. In 2012, the PHP Board of Directors set in motion key initiative to support the purchase agreement provisions and strategically position both the DMC hospitals and PHP to continue to be major health care market contributors in Southeast Michigan. With the merger of these two health care entities the strategic plan will focus on market growth strategies for PHP through 2015.

ProCare Health Plan Mission, Vision, and Key Values

PHP mission is to protect, preserve, and promote the health and safety of the people of Michigan with particular attention to providing for the needs of vulnerable and under-served population. The vision is improving the experience of care, improving the health of populations, and reducing per capita costs of health care. PHP can implement the mission and vision statement by installing the following key values; achieve excellence, developing teamwork, and inspire leadership (ProCare Health Plan, About Us, 2013, para 2).

ProCare Health Plan Current Strategic Planning Model

Unfortunately, there is no ideal strategic planning model that meets the needs of all organization seeking change. The approach depends on what the organization has done in the past, what the purpose of the plan, what is the current culture of the organization and how rapidly the environment is changing. In order for PHP to continue to expand its growth the current strategic planning model used is the Alignment model. The Alignment Model goal is to make certain there is a sturdy alignment among the organization's mission and its resources to successfully operate successfully the organization (Burgi, Victor & Lentz, 2004). Before the purchase of the PHP by VHS it had a reputation of possessing an abundance of issue surrounding internal process efficiencies. The alignment model has allowed PHP to recognize what has been working well but may need some adjusting, how the adjustment can be implemented, and incorporating the adjustments in the overall strategic plan.

ProCare health plan theoretical framework

Using a theoretical framework can reduce the potential issues that can occur when there is an attempt to implement a change within the organization. For PHP and the current rebuilding of how the health plan works to service the patient, they currently use a change theory to remove likely barriers. The change theory is a problem-solving approach to implement planned changes by assessing, planning, implementing, and evaluation (Mitchell, 2013).

Role of ProCare mission, vision, and values in relationship to the strategic plan

The mission and values are important to PHP strategy formulation and they play a major role in the relationship to the strategic plan. As the current goal is to develop market growth strategies it must not lose sight of the population they set to serve and provide care. The relationship between providing for the needs of the vulnerable and underserved creates challenges for the financial wellbeing of PHP. Nevertheless, the vision of improving the experience of care and improving the health of this population is the foundation of why PHP was restructured, and it will give them the opportunity to display their distinctive abilities and hold true to their mission.

Organizational structure of ProCare health plan

PHP has a more traditional organizational structure where the chief executive officer provides leadership and creates the organizations objectives. Under the CEO direction the leadership runs vertically throughout the rest of organization which all of the managers and staffs have well defined responsibilities and immediate overseers to provide direction and guidance.

Key leaders of ProCare health plan

There are many leaders within PHP to help move the organization toward success; but the two key leaders are the Chief Executive Officer and the Chief Medical Officer. The Chief Executive Officer role is to establish the health plan expectations and accountability for leadership and staff participation in performance improvement activities including departmental work plans, strategic initiatives, and support measurements. The Chief Medical Officer is responsible for implementing the model of care and coordinating with community physicians to enhance the delivery of quality care to the patients.

ProCare health plan change management model

Change is critical to move toward success in any organization. Change management is a reference used to