Financial Strategic Planning
The healthcare industry is changing more than ever. The future success of healthcare practice depends on how best hospital administrators plan both on the financial dimension and strategically to address the ever-increasing demands. Financial and strategic planning is preparing for the unknown to ensure professionals and health care facilities are equipped to provide quality services to their clients.
The core function of financial planning is to manage and set aside financial resources meant to improve service delivery to the patients. Financial planning positively influences healthcare organizations because an entity is able to evaluate its financial effectiveness and operations with the intention of supporting future expansion anchored on the provision of effective services to its clients. For example, a health care organization may discover that it is losing many referral cases to a neighboring health facility due to inadequate bed spaces. Therefore, management can plan on how to use their financial resources to support current operations while planning on an emergency room expansion to address inadequate space concerns.
Strategic planning influences an organization through collaboration. Per Johnson (2017), strategic planning enhances collaboration and teamwork among medical practitioners that are essential in the provision of quality services to patients. Therefore, multidisciplinary teams in hospital setups must be guided by a common vision and work towards a common goal. Teamwork and collaboration can improve the performance of health care professionals in different critical areas of operations. For example, a functional strategy meant to ensure continuity of service delivery during a facility’s expansion may prompt nurses to work in shifts and form teams to accomplish increases responsibilities before additional staff is recruited.
Indeed, structural decisions ranging from financial planning to strategy formulation are necessary for healthcare organizations. Financial and strategic planning allows for more efficiency in all aspects of care intervention, collaboration, teamwork, and operations within a facility.
Johnson, T. (2017). Strategic planning in the healthcare industry. Balanced Score Card Institute. Retrieved from https://balancedscorecard.org/strategic-planning-in-the-healthcare-industry/