“What’s the use of running if you are not on the right road?” This is how the attached article, “Strategic Decision Making: It’s Time for Healthcare Organizations to Get Serious”, by David Young, begins. Hitting on many of the points reviewed in the assigned readings about strategic planning, the particular component that I feel was not covered in our literature, and I want to focus on, is Trade-Offs.

Within the article, Young points out that a high-quality strategy requires the organization to decide what it does not want to be, in addition to what it intends to be, involving having to make trade-offs. According to Young, most Healthcare organizations have not made trade-offs, and instead try to be all things to all people.  He also emphasizes that to be successful in today’s environment, healthcare providers need to determine which services they want to provide, for which types of patients, and in which areas. They then should eliminate programs that do not fit. Young also points out the importance of not being held captive by the medical staff in making trade-off decisions.

While pointing out increased difficulties, Young fails to focus on the inherent challenges for small non-profit hospitals to make trade-offs in strategy formulation. Young alludes to non-profits using their community service missions as a crutch; however, it is a delicate balancing act for these facilities to weigh the performance of services provided with the needs/expectations of the community being served. Cutting services is a last-resort for most community hospitals, and one that is not made lightly. However, not making these strategic trade-offs will ultimately lead to a non-profit’s demise.  My organization has made these mistakes, but it is easier to theorize about making strategic trade-offs than it is to have a narrow strategic focus in a community that expects all of its needs to be met.

http://www.redorbit.com/news/health/306646/strategic_decision_making_its_time_for_healthcare_organizations_to_get/index.html?source=r_health