HEALTH CHOICE NETWORK

Health Choice Network: Enhancing Business Operations

Health Choice Network: Enhancing Business Operations

An Organizational Problem

HCN is an umbrella organization which is continually interacting with Community Health Centers (CHC) across the US. This makes flow of information a challenge for the organization. Information flow would become electronic, according to Federal mandates, by the years 2014/2015 (Edoscan.com, 2011). This creates a challenge for the organization to harmonize and smooth flow of information throughout the value network.

Possible Solutions to the Problem

In the following paragraphs, we will discuss in detail how HCN handles the demand for electronic medical records through the environmental factors, demand management, resource and relationship management and sales forecasting and get an understanding of how forecasting and planning allows them to ensure competitiveness, through better flow of information, within the information technology field.

Environmental Management

Strategic planning is based on one of three different strategies: operational efficiency, product leadership and/or customer intimacy (Mentzer et.al, 2007). Operational efficiency is the ability to process business transactions and provide services cost effectively. Being an organization that monopolizes the product market due to offering the most pioneering products and services is known as product leadership. Environmental factors that affect HCN success are the various regulatory changes that they are subjected to in the healthcare field. HCN's global range is only within the United States, yet the environmental capacity of the demand is great due to the specific market of CHC's. An additional external factor is that of federal funding. The government has allocated millions of dollars to help ease the financial burden for the transformation to electronic medical records. This information flow is backward meaning this information flows from regulators to HCN, and it is very important to receive information on time and integrate it with company policies. HCN's policies are flexible, which allows the company to adjust to new policies. Federal funding is also impotent environmental factor, however, HCN manages its own funds in order to hedge risks associated with cuts in federal findings.

Demand Management

Demand management is a scheduling method used to deal with forecasted demand. It is the practical management of work initiatives (demand) with business limitations (supply). The Aberdeen Group defines demand management as a “highly iterative process that involves driving to a revenue and profit target through prioritization of customers, channels, products, geographies and the demand stimulation programs available to the enterprise.” (Aberdeen Group, 2004) Independent demand is the amount of product requested by the end client within a supply chain. Derived demand comes from what other vendors in the supply do to ensure demand is met for the immediate client. Dependent demand is the need for parts that make up the end product.

HCN handles the demand for electronic health records with its Business Development department. These employees reach out and travel to various CHC's across the country, have product meetings and provide a demonstration of the electronic health record being offered and assures the potential clients that it will meet their needs. Michele Russell, Director of Business Development say “based on ...