STRATEGIC MANAGEMENT OF HEALTH CARE ORGANIZATIONS

Strategic Management of Health Care Organizations

Strategic Management of Health Care Organizations

Organization Background

Genesis HealthCare organisation is a United States based long-term care provider. As of 2008, Genesis operates 200 skilled nursing centers and assisted living residences in 13 eastern states. Genesis provides contract rehabilitation therapy to over 650 skilled nursing facilities, assisted living residences, retirement communities, hospitals, home care companies, adult daycare programs and outpatient clinics in 18 states and the District of Columbia. As of 2008, Genesis had more than 36,000 employees. Genesis HealthCare is headquartered in Kennett Square, Pennsylvania.

Situation Analysis

Issue and Opportunity Identification

With emerging compliance and regulation issues in the cleaning and sanitation industry, the management at Genesis HealthCare realize that in order to remain competitive they must provide customers with “not just products, but solutions and services that will streamline their cleaning efforts in the wake of more stringent requirements for environmental safety” (Moore 1993). In order for Genesis HealthCare to break into a full service market they must educate the sales force on more than just demonstrating and selling the product. “They'll be trained to engage directly with facilities managers, health care professionals, and operational executives in their customers' organizations” (Pine 1999). CEO David Spencer has decided to not only announce the new all-inclusive strategy through a media blitz, but has also announced the acquisition of EnviroTech, a competitor in the industry. “With this acquisition, Genesis HealthCare has taken a giant step in achieving domestic market dominance in the sanitation industry” (Pine 1997).

Table 1 identifies opportunities for Genesis HealthCare that if they are able to capitalize on can move them in the right direction to achieve the strategic goals of the organization. If Genesis HealthCare management along with human resources are able to forecast staffing needs accurately, develop a plan for downsizing if needed, and develop a thorough training manual, Genesis HealthCare will be on its way to realizing the goal of becoming one of the first to introduce an all-inclusive sanitation service.

Stakeholder Perspectives/Ethical Dilemmas

As Genesis HealthCare completes the acquisition of EnviroTech and begin the restructuring phase, there will be different perspectives from stakeholders that must be considered. Table 2 lists all the stakeholder groups along with their interest, values, and ethical dilemmas. The stakeholders listed include: (1) the leadership team, (2) the employees, and (3) the customers. In order for Genesis HealthCare to reach the goals of becoming an all-inclusive sanitation department and increasing profitability the management team must align staffing with the strategic direction of the company. “Our goal is to provide a full spectrum of cleaning services and solutions…As we align our organizational structure around this vision, we will be reviewing our current staffing…” (Reichheld 1990). Employees, on the other hand, are concerned with layoffs that may come with restructuring. In a memo to the executive team, Vice President of HR, Janet Durham expressed her concern of rumors of layoffs that are going around the office. “There are lots of rumors floating around that huge cuts…are coming down ...