The evaluation of strategic levers as a means to get effectiveness and efficiencies within the JMH Group of private hospitals.

Abstract

Healthcare businesses and service providers are being pressurised to modify and restructure their business models to offer a prodigious high quality service deliver while con currently reducing the costs of the service delivered. In order for these companies to be competitive in this highly complex industry, change and innovation tactics is the status quo. The focus of this research was to examine the key strategic levers within a private hospital group as a means to improve efficiencies and effectiveness. The frame work from imminent change and innovation lead us to infer to the four primary strategic levers identified, namely cost containment, leadership, process management and reimbursement strategies. Recognising the importance of a holistic understanding to define sustainable business practices for the private healthcare hospital industry, this research includes all dimensions of the four strategic levers mentioned above. The study intends to investigate the impact that these strategic levers have on the business and all stakeholders involved. A quantitative approach was selected and the results of the quantitative questionnaire (n= 65) was analysed with corresponding inferences to ensure a more complete conception of the data using the SPSS program. It has been noted from the surveys that these four strategic levers have a significant impact on the institutions performance. The major finding emanated from the study which is of a great concern is the cost drivers affect the JMH business strategy in healthcare indicating that salaries and skilled resources are major cost drivers whilst the ageing population increases utilization which in turn increases healthcare expenditure. The leadership arena is alarming with a high response indicating that a qualification is crucial in leading however the barrier is that 25% of the middle management do not possess a relevant qualification. Process management are in line with internal standards however emphasis was given to a “lean mythology”, that could be beneficial. The under lying derivative from funder reimbursement strategies lead us to argue that the autonomy lied with the funders. Consequently the study shows that there is a need for strategic innovation, aligned with formal measurement and process systems to improve business presence.