To keep pace in an ever-changing healthcare environment, hospitals, health systems, and other healthcare organizations need clearly defined identities and goals. They also need a clearly defined path to achieving those goals.
Strategic planning in healthcare is the process by which healthcare organizations map such a path. It is a process that has become increasingly important as the industry continues to see significant disruption, including mounting regulatory pressures, economic uncertainty, competition from nontraditional providers, and evolving patient expectations. Through strategic planning, healthcare leaders ensure their organizations are effectively aligned around their mission and goals, and have a long-term roadmap to maintain financial health, grow, and serve their communities.
The following are key reasons why healthcare strategic planning is important for organizations to build sustainability and success in today’s volatile healthcare industry.
Establish a strong long-term vision and direction. One of the first steps in the strategic planning process is to define an organizational mission, vision, and values. Whether the organization is developing these elements for the first time or reaffirming its existing mission, vision, and values, this step is essential to help organizational leaders, staff, and other stakeholders stay engaged, aligned with organizational values, and working together toward a common purpose.
Stay agile in a dynamic healthcare environment. Healthcare is constantly changing, and healthcare organizations must continuously evolve to keep up. Undergoing a routine healthcare strategic planning process ensures organizations regularly assess their operations and services within the context of the broader market. This includes evaluating factors such as changing patient demands, emerging competitors, and technological advancements, and their impacts on healthcare delivery.
Allocate resources effectively. Strategic financial planning is a vital part of the overall strategic planning process by which healthcare leaders thoroughly review an organization’s operations and resources and define how to use those resources to achieve its goals. Through the combination of strategic planning and strategic financial planning, leaders can identify opportunities to better allocate resources, reduce waste, maximize efficiencies, and improve patient care.
Improve patient outcomes and satisfaction. Optimizing operations and resource allocation around organizational goals allows healthcare providers to maximize care delivery. As part of the strategic planning process, leaders can identify and address service gaps and challenges, enhance quality improvement efforts, and foster patient-centered care. Ultimately, these initiatives allow organizations to provide better services and higher quality care to achieve greater overall patient satisfaction.
Strengthen collaboration and partnerships. An optimal healthcare strategic planning process draws input from across an organization. As a result, clinicians, staff, and other stakeholders feel they have a stake in the organization’s future success and are invested in a common mission and goals. This builds engagement and buy-in, promotes cross-functional collaboration, and creates a cohesive plan for all to follow. The strategic planning process also allows organizations to evaluate existing and potential partnerships with external entities aimed at improving access, growing services, and improving healthcare outcomes.
Mitigate risks and ensure compliance. The strategic planning and strategic financial planning processes provide healthcare leaders with regular processes to continuously evaluate and identify potential risks and vulnerabilities within an organization’s operations and market, such as forthcoming government regulations or unfavorable shifts in referral patterns. They then can evaluate effective risk management strategies, including ensuring the organization complies with all regulations and standards.
Today’s healthcare leaders must understand the importance of strategic planning in healthcare. The strategic planning process helps organizations define their core mission and goals, and chart a path to sustainable growth and long-term success. The strategic plan establishes guideposts to help organizations better navigate current challenges and future unknowns, keep stakeholders engaged around common goals, and maintain efficient and effective operations so they can continue serving the vital healthcare needs of their communities.