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MANAGEMENT PLANNING AND GOVERNANCE OF A HEALTH CARE COMPANY Managing a health care company entails important functions that need to be utilized in its affairs. A companys success depends on how the business and the company as a whole, is managed especially in the areas of planning, organizing, leading and controlling. In the area of planning, the management of a company streamlines policies and plans in its governance. In planning, strategic plans and priorities are identified while financial forecasting is done to ensure that its business finances can support the plans for implementation (List of Management Functions, 2005). To start off, in the planning function, management develops the budget, analyzes capital and investments and allocates budget for services and activities.
It also sets to implement such plans and business operation, monitors healthcare systems and the changing demands of healthcare patients are all taken into consideration. In planning, it is an ongoing process of developing the companys mission and objectives and determining how they will be accomplished (Even, 2005). A planning process known as strategies planning is introduced in a step-by-step manner. Through this process determination of the organizations strengths and weaknesses is made. The more levels of employees involved the more likely it is that a true assessment of the organization can be obtained (Graham, Gray). In the course of going into the issue, the paper will also discuss how these factors impact management planning in the organization chosen.
Description of the Company The Good Hands Physical Therapy Clinic (GHPTC) is owned and operated by two physical therapists who are entrepreneurs in their own rights. Their private practice, GHPTC, celebrated its first year of operation. GHPTC defines its business as the provision of outpatient services on contract to the managed care market. This includes PPOs and HMOs. The goal of GHPTC is to grow as rapidly as possible. To achieve this goal, Ghptc's strategy has been to undercut the competitions prices while maintaining a high quality service.
Consistent with these goals and objectives, the owners of GHPTC have set high quality standards and have cut their prices to the bone. GHPTC currently employs its two owners, one full time physical therapist, an aide, and a receptionist. The clinic is operating at full capacity. Clients are able to begin therapy within three days of referral. No client waits longer than 15 minutes except in an emergency. Therapy is provided on an individualized basis.
A physical therapist provides all of the direct care including the most routine modalities. At present, GHPTC is operating at the breakeven point. Cash flow has been adequate to meet monthly accounts payable. Occasional shortfalls are handled with a line of credit from the local bank. To date, GHPTC has not had to incur any long-term debt. The owners have invested their savings to provide start-up costs.
They have no more personal resources to invest. The owners only income is a competitive salary from GHPTC. Between client care and the business office, the owners average 60 -hour work weeks. The owners of GHPTYC are at a decision point in the life of their new enterprise.
To meet their goals, they must aggressively seek additional business. To seek new business, they must be in a position to provide physical therapy services to additional clients. This is something they cannot do at their current staffing level while maintaining their current service delivery patterns. According to the interviews conducted, the The owners of GHPTC find themselves in a not uncommon cart or the horse dilemma. They need to add additional capacity to the GHPTC staff to market their services and grow. To hire an additional therapist before they have a known buyer is a substantial financial risk.
In planning, the owners could weigh the options available. The owners of Good Hands Physical Therapy Clinic have several alternative actions that they can follow to alleviate their current situation. These include but are not limited to: - Continuing operations at the current level while hoping to find a customer who will give enough lead time to add capacity. It could be a long wait. - A review and modification of current practice patterns. Modifications could be made to increase capacity. Under this approach, GHPTC must balance its personal commitment to current standards, the impact on its marketing effectiveness.
A review of community standards of practice may assist with this assessment. - Seek an additional partner. A partner willing to commit financial resources now and / or time when needed could also be the answer. The internal environmental evaluation is similar to the external evaluation of the environment. Requiring the gathering and assimilating information about the firm's management, marketing, finance, operations, research and development, and information systems operations are all internal system evaluation.
The first step must be to determine the companys relative strengths and weaknesses. Organizations benefit well during internal evaluations because there is the opportunity for participants to understand how their jobs, departments, and divisions fit into the whole organization. The forced communications that occur across departmental lines produces an additional benefit in improving communication within the organization (Hunsicker, Frank R. ). Meanwhile, in terms of this kind of industry, it is highly regulated by state and federal laws. Licensure to practice, business laws and fair labor practice laws are examples of legal regulation. As licensed health care professionals, the managers of this firm are legally responsible whether treating clients themselves or delegating and supervising employees.
In the case of the issue at hand, they are legally responsible once they make their decision to bring in additional therapists. In order to function effectively and legally, managers require a background in management concepts and organizational behavior and an understanding of legal principles. Familiarity with legal principles associated with licensure, business and employment are areas of particular interest to all health care managers. Risk of litigation can be minimized through regular and systematic consideration of the legal implications of managerial decisions. In summary, common to all organizations are internal traits such as objectives, structure, processes, and behavior. Furthermore, these traits are not separate and distinct.
The different principles of planning in management come into play and are overlapping, interdependent factors in the broader organizational system. They provide the astute health care manager with a fundamental basis for examining and understanding his own organization and its many stakeholders, especially during those critical times. REFERENCES Carson, T. (n. d. ). Organizational Change and Strategies for Turbulent Environments. Retrieved Nov. 9, 2006 at: web Even, B.
L. (2005) The Five Functions of Management. The Foundation of Management Excel, Department of Agricultural Economics, Ohio State University Extension. Retrieved Nov. 9, 2006 at: from web Graham, G (n. d. ). Certified Trainer Facilitator, National Center for Employee Development. Retrieved Nov. 9, 2006 at: web Hunsicker, F. (2004).
Organizational Theory for Leaders, AU- 24, Concepts for Air Force Leadership, Retrieved Nov. 9, 2006 at: at: web List of Management Functions. (2005) World Health Organization. Retrieved Nov. 9, 2006 at: from web McNamara, C. (n. d. ). Operations management. Retrieved Nov. 9, 2006 at: web
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Research essay sample on Strengths And Weaknesses Physical Therapy
