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Catholic Health Partners Strategic Analysis604: Strategic planning and the managerial process

Professor Hollinworth

Laura Gardner

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C atholic Health Partners Strategic Analysis 2

Table of C ontents

INTRODUCTION 3

HISTORY 4

VISION 6

MISSION 7

EXTERNAL ERROR! BOOKMARK NOT DEFINED.8 INTERNAL 9

GOALS 11

OBJECTIVES 12

STRATEGY 12

WHY THESE STRATEGIES WORK 15

TACTICS 19

CONCLUSION AND RECOMMENDATIONS 20

APPENDIX 1

APPENDIX 2

WORKS CITED 23

REFERENCES 24

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Introduction

C atholic Health Partners is a non-profit health system based in C incinnati,

Ohio. Facilities are located in five states. Their primary focus is providing excellent

healthcare while promoting Catholic values. Most residents of southwest Ohio have

had an experience with CHP. They have had babies there, had a grandparent

recovering from a heart attack, or had a family member work there. Like many I

have a personal investment in this organization in that my mother is a nurse in one

of the cardiac rehabilitation clinics and all of my doctors are in the CHP network.

*Source: http://www.health-partners.org/content/where_we_serve.asp

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History

Catholic Health Partners Timeline

17 37 - In Canada, Marguerite d Youville founds the Sisters of Charity of Montreal

(the Grey Nuns )

18 31 - In Ireland, C atherine Metuley founds the Sisters of Mercy

18 45- In Germany, Frances Schereir founds the Franciscan Sisters of the Poor

18 54- In France, Marie Antionette Potier founds the Sisters of the Humility of Mary

18 55- The Grey Nuns open St. Vincent Mercy Medical Center in Toledo, Ohio

18 58 - The Franciscan Sisters of the Poor found St. Mary s Hospital in C incinnati,

Ohio

1879 - The Sisters of the Humility of Mary establish St. Joseph Infirmary in Ohio s

Mahoning Valley

189 2- The Sisters of Mercy, Regional Community of C incinnati, start Mercy Hospital

in Hamilton, Ohio

1986 - CPH, then known as Mercy Health C are System, is founded by Sister s of

Mercy, Regional C ommunity of C incinnati

1989 - The Sisters of Mercy, Regional Community of C incinnati, become CHP s first

co-sponsor

199 5- The Grey Nuns become C HP s third co-sponsor

1996 - Covenant Health Systems replaces the Grey Nuns as a C HP co-sponsor upon

becoming a Public Jurdic Person. The fourth co-sponsor, the Sisters of Humility of

Mary, is added

1999 - CHP s fifth co-sponsor, the Franciscan Sisters of the Poor, joins the system

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Current Situation

C urrently CHP serves in Ohio, Kentucky, Pennsylvania, and Tennessee. Each

year they continue to grow through both individual practice partnerships and

offering additional services throughout the community. They are currently Ohio s

sixth largest employer. Due to the slow economy some departments in the regional

office have been consolidated, while others have been outsourced. All departments

must adhere to strict productivity standards. In regards to Human Resources, the

organization is not in a hiring freeze, but all open positions must be reviewed by the

hospital CEO before being posted. If the position is not essential to patient care then

it may be not be filled. Those positions that are deemed essential are reviewed and

the department s current productivity metric is reviewed before the decision is

made in filling the position. Also, there will be a future change in how many

uninsured patients hospitals will be able to take. Each department is more carefully

scrutinized in order to make budget.

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Vision

Driven by excellence, we will transform our healthcare system to one of seamless,

team-based care for all we serve .

This vision statement fits the organization. It is in alignment with the theme

that C HP uses in its mission statement and core values, as well as goals that it hopes

to achieve. Since the C HP is the umbrella for hospitals, rehab centers, and private

practices among other things, the idea to provide seamless, team-based care is

appropriate. A vision should build a future (Digman) and this is exactly what

CHP s vision statement is able to be. By combining all of their resources (doctors,

nurses, specialist, volunteers) they envision being able to have a team that can meet

any medical needs.

The statement is customer oriented. The main purpose of CHP is to care for

the health of their patients and the vision statement affectively references this. It

also conveys a sense of community by using we and incorporating the aspect of

team . The term excellence also ties into the core values of CHP and leads in to

the goal that the organization has set for itself in the future.

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This mission and core values aresuccessfully demonstrated and supported in

several ways. There are external means that C HP lives its values and internal ways.

External

There are four ways that C HP lives its values in means of serving their patients.

These are ethics, culturally compassionate care, palliative care and socially

responsible investing.

Ethics

The corporate director of ethics responsibility lies in enhancing the understanding

of clinicians and managers concerning the ethical framework that ought to influence

all facets of work within the organization. Most hospitals within the C HP have an

ethics committee that serves as a resource for all staff members, as well as family

members of patients facing difficult decisions. CHP also conducts an annual Ethics

Colloquium for the members of C HP ethics committees, the pastoral care staff, and

other associates who want to improve their knowledge of ethics.

Culturally Compassionate Care

Each hospital keeps diverse pastoral caregivers on spot to provide spiritual

guidance to patients of any religion or background. There are also services offered

in several different religions. The hospital also tries to provide medical translators

to help communicate with patients and families who do not speak English.

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Palliative Care

Palliative care helps patients with life-threatening illnesses cope with their

circumstances rather than forcing them to have to navigate within a medical system.

One example is the ability to receive care at home.

Socially Responsible Investing

CHP believes in managing their investments in a manner that is consistent with their

mission and core values. To adhere to their values they apply social screens to

investments. C HP encourages their investment managers to seek companies that

actively promote and social and environmental well-being.

Internal

There are several ways that CHP promotes its mission and core values through

management. These can also be viewed as tactics to support the corporate culture of

CPH.

y Mission moments These are short stories of employees exemplifying the

mission statement that are shared at the beginning of Leadership meetings.

y Mercy Hospital Fairfield has an Employee of the Month award. Employees

are nominated by their co-workers or manager for exemplifying the core

values of Mercy and actions to improve performance in the areas of

growth, human potential, service, finance and quality. Winners receive a

special parking spot for one month, $ 7 5, a free meal in the cafeteria and a

cake to share on their department.

y Every quarter a newsletter, "The Mercy C ircle", is published and distributed

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to each site. It keeps employees up-to-date on events, usually has a letter

from the CEO of MHP, highlights what activities have taken place to

enhance our mission. All managers are given an opportunity to submit

information for the publication.

y There is an intranet homepage where information, mission moments, etc

are posted for employees to review.

y C HP has a yearly Healthcare worker award. Every site submits the name of

one employee to be considered for this award.

y At monthly Leadership meetings a series on mission based leadership is

being presented. The objective is to help the organizations leaders make

sound mission based decisions.

y Yearly employee engagement surveys are conducted by the Gallup

organization. Results are shared with every manager and employee. Each

department then develops strategies to improve scores. The staff of the

department identifies the areas to work on and the strategies to attain the

goal.

y There are several committees management takes part in: Mission

C ommittee, Funding the Mission, and Growing the Mission.

y MHP (Mercy Health Partners) offers a program to employees called RISEN -

Re-Investing Spirituality and Ethics in our Networks. This is a 4 day

program designed to enrich professional relationships and provide

personal growth and development(Nickell, 2 009 ).

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C atholic Health Partners Strategic Analysis 1 2

ObjectivesThe C HP has a subset of objectives that need to be achieved in order to meet these

goals.

Goal: Quality

Objectives: performance on nationally accepted quality indicators;

reduction in adverse drug events; all facilities demonstrate a culture of

safety; top quartile patient satisfaction performance.

Goal: Human Potential

Objectives: associate satisfaction; percentage of curriculum

accomplished per stakeholder group; separation rate; increase minority

representation amount Strategic Leadership Team.

Goal: Physician Relationships

Objectives: physician satisfaction; percent eligible physicians aligned

through C HP initiatives.

Goal: Regional Growth

Objectives: increase net patient revenue by 2 0 percent; operating

margin " 3.0 percent.

Goal: Stewardship

Objectives: maintain AA- bond rating targeted ratios; increase

proportion of community benefit resources dedicated to prevention and

outreach; all hospitals mercury free( Catholic Healthcare Partners, 2 009 ).

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Strategy

The C HP has a number of strategies in place to help achieve the objectives, and

ultimately the goals.

Quality :

1 ) Develop and implement innovative models of care delivery for two

chronic diseases each year of the plan

2) Aggressively adopt technology, implement processes, develop talent, and

support a culture to improve patient safety by 2 010 .

3) Continuously utilize evidence-based approaches to achieve top results for

major nationally targeted quality, patient safety and satisfaction

benchmarks.

Human Potential :

1 ) Increase capacity to develop associates, aligned physicians, and members

of governance at every level.

2) Develop and implement collaborative models of clinical practice to

enhance quality, improve levels of clinician satisfaction, and increase

productivity.

3) Enhance diversity and a culture of inclusion in each region and the

system as a whole.

Physician Relationships :

1 ) develop and adopt new models for physician engagement, alignment and

partnerships

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2) create a supportive environment offering superior customer service,

well-trained staff, and information/clinical technological resources that

facilitates our affiliated physicians providing the best possible care

3) ensure an adequate supply of physicians needed in communities we serve

through advanced recruiting and retention program.

Regional Growth :

1 ) develop regional plans for identification and rapid implementation of

opportunities for regional growth.

2) develop a C HP C enter of Excellence around at least one hospital-based

clinical service to achieve system growth in net revenue.

Stewardship :

1 ) advance a system and regional advocacy agenda to promote the mission

through reforming healthcare

2) effectively target community benefit resources to address disparities in

health

3) to pursue opportunities for growth and realignment of the C atholic

heathcare system and/pr unaffiliated C atholic facilities within CHP s

geographic focus.

4) rapidly implement best practices to achieve/maintain top quartile

operating and financial performance for selected ratios and maintain AA-

bond rating( C atholic Healthcare Partners, 2 009 ).

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W hy these strategies work

Competitive advantage Many of C HP s strategies are aimed at providing the

company with strategic advantage.

y The organization does this by striving to become the industry standard in

healthcare by keeping their quality scores high.

y Another way of doing this is by embracing new technology in an aggressive

manner as a way of distinguishing themselves from other heath care

providers.

y Associates are also a way that C HP tries to remain competitive. By providing

excellent benefits and building an attractive company culture, CHP can

attract the best in the field, thus making them more competitive.

y Building strong ties in the community is not only a company value but also a

way that the organization is able to form relationships with patients and

their families.

y A new plan will be implemented this year to help fifty patients who are

using the emergency department as their family doctor to help the patient

review their situation, identify options and connect them with a primary

care doctor. The plan is to track the patient s use of health care service for

one year to validate the health and cost benefits of having a primary care

provider.

y Mercy Fairfield is planning to complete the last portion of a wing on the

fourth floor that will be called a Rehab unit. The patients admitted there

will be those who still need skill nursing care for 1 -2 weeks but don't

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qualify for continued hospital admission. For example those who have

cardiac surgery and are able to be released but do not have a caregiver at

home. The plan is to have this unit open by mid December 2 009 .

Technology CHP is staying competitive in terms of technology planning to go to an

electronic charting system. This would allow for electronic communication of

patient information between any CHP facilities. If this system, that is used by

several large nation-wide providers, is implemented it would facilitate electronic

communication of patient information. For example, if a patient from Boston is

admitted into a C HP hospital their information will be obtained faster and without

the use of fax machines. Also, Mercy Hospitals are investing in new all digital

mammography equipment

Environmental Factors The C HP is aware of its current market and constantly re-

evaluating its surroundings. There are several hospitals located in the downtown

area, but C HP hospitals (Mercy) are primarily located in suburban areas outside of

the city. The facilities that are located within city limits were founded in areas with a

low-income population. C HP s core mission is to provide the community, even the

poverty stricken population, with health care and be able to provide discounts to

those who cannot afford to pay their bills. Providing medial translators and multi-

faith pastors is also a way to attract patients of diverse backgrounds.

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Governance The C HP s C EO is in tune with the vision and mission of the

organization (See Appendix 2). The Board of Directors role is to make sure that the

organization is moving in a direction that is both ethical and financially responsible.

The C o-Sponsorship Model allows the church to influence the direction of the

organization. The CHP board of trustees has representation on the corporate

responsibility, executive, and finance and strategy committees. They also approve

the mission and values of the system, as well as oversee C HP s observance of its

mission and C atholic identity. There is also a corporate board of trustees who

oversee the overall system direction including appointments to regional boards,

mergers, acquisitions, dissolutions of subsidiaries and annually appoints an external

auditing firm.

Differentiation C HP also uses several differentiation strategies. The first being

price. CHP offers financial assistance to those who are twice the poverty level or

below depending on the amount of members within a family. They also use

design/amenities to their advantage. Several years ago many of the hospital birth

units were updated and offered amenities that were not offered in any other

hospital at the time. This led more mothers-to-be to have their babies in Mercy

hospitals. Having hospitals with award-winning wireless access also helps

differentiate their product.

Geographical expansion Mercy Hospital already has a reputation in the greater

C incinnati area, but has not expanded into the west side of the city. Due to the

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number of patients from this area who are traveling to Mercy care facilities, the

organizations feels it can now expand and build a new hospital in the area in the

next 3 to 5 years. Also, in the next year C HP will open Mercy Medical Center- Mt.

Orab. Besides physician s offices and outpatient services the center will house a 24

hour emergency department. This specific area of the east side of C incinnati has

very limited access to emergency care, thus allowing residents of this location with

quicker interventions and stabilization. The Jewish Hospital is a well-known facility

in C incinnati but is selling a facility on a location that C HP currently has no presence.

Mercy Hospitals are currently in the second round of bids to acquire this facility.

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Tactics

The tactics that C HP use are implemented to increase the quality of care for

members of the community and their associates. Below are a few tactics that the

CHP has recently implemented or will facilitate in the future.

1 . Management constantly reviews the state of current equipment ( C Tscanners. MRI

scanners. new surgical equipment). Priorities are set toreplace older equipment to

improve services.

2. C ontinue to keep the facilities wireless. Mercy Hospital Fairfield has been

awarded a "Most Wired" hospital award twice in twoyears.

3. PET scans are very valuable scans for cancer diagnosis but in the

Fairfield area there was limited availability. Mercy Hospital Fairfield contracted

with a mobileunit to be on-site 2-3 days per week to provide scans.

4. Human Resources perform a yearly review of salary ranges for theregion and

compares to Mercy's range. Adjustments are made as needed toprevent salary

ranges from slipping out of a competitive range.

5. New services added - Healthy Weight solutions. Offers program tothe public for

weight loss management with surgical options.

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Conclusion and Recommendations

During my research I analyzed the organizations web sites and newsletters,

interviewed associates, examined media/news stories and have been in several of

the facilities myself. The CHP does several things very well. The organization has

successfully branded itself in order to communicate its ultimate vision to all its

publics. All communication is ultimately related back to a framework that includes

reaching out to the community and improving healthcare, all while maintaining

values core to the Catholic Church. This includes the vision statement, the mission

statement and the goals that have been set for the future. While C HP facilities have

diverse associates, the culture is one of integrating faith into health to create overall

patient wellbeing. The internal culture is described as supportive (Gardner, 2 009 )

and any disruptions between staff are to be reported anonymously.

In order to assess the recommendations that I would submit to C HP I looked

at two other heath care systems of similar size, the Health Alliance in C incinnati and

Partners Healthcare of Boston. One expansion that CHP may want to look into is

developing a professional partnership with a local teaching university. The Health

Alliance is partners with the University of C incinnati Medical School and Partners

Heathcare works with Harvard s Medical School. Incorporating teaching could

further spread CHP throughout the city and expose new patients to the system.

When comparing the three health systems I found that CHP s message was more

apparent and communicated constantly throughout each medium.

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Appendix 1

CHP Organizational Chart

y Source: Judy Nickelly Graphic: CHP

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Appendix 2

*Source: http://www.health-partners.org/content/message_from_ceo.asp

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Works Cited

Catholic Healthcare Partners. (2 009 , April 10 ). health-partners.org . Retrieved April10 , 2009 , from Catholic Healthcare Partners: http://www.health-

partners.org/

Gardner, K. (2 009 , April 2). Information about CHP. (L. Gardner, Interviewer)

Heath Alliance. (2 009 , April 17 ). Health Alliance . Retrieved April 17 , 2009 , from

Welcome to the Health Alliance of Greater C incinnati: http://www.health-

alliance.com/

Mercy Health Partners. (2 009 , April 16 ). Mercy Health Partners . Retrieved April 16 ,

2009 , from Welcome to Mercy Health Partners:

http://www.ehealthconnection.com/regions/nepa/

Nickell, J. (2009 , March 24). Information about C HP. (L. Gardner, Interviewer)

Partners Healthcare. (2 009 , April 17 ). Partners Healthcare . Retrieved April 17 , 2009 ,

from Welcome Partners Healthcare: http://www.partners.org/

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References

Hollingworth, Ted. C lass Lecture. Strategic Planning and Managerial Process.

Emerson C ollege, Boston, MA.

Stubbs, A. ( 1998 ). A recipe for non-profit success: managing the linkages and key

elements of successful organizations. Fundraising Management. (17)4 .

University of California, San Francisco. (2 007 ). Advancing Health W orldwide: A

Strategic Plan. Retrieved Apr. 3, 2 009 , from

http://strategy.ucsf.edu/pdf/sp_progress_report_2 0071 2.pdf

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