Part Three: Strategic Planning
One of the most common practices I see in rural hospitals is using the budget as the organization’s strategic plan, whether intentionally or by default. However, for a budget to be truly effective, it should be based on strategies, which drive goals and tactics, and the resources to support them. Planning assumptions, or premises, should be reviewed at least annually to drive each year’s budgets; and, if not annually, at least every two years a rural hospital should undergo a formal strategic planning process. In today’s rapidly changing healthcare environment, other than planning for major capital expenditures, strategic planning windows of more than two years could result in missed opportunities, changes in the market and the need to respond to new payment models. As an interim CEO who prepares an organization for its permanent leader, it is my job to walk the new leader, board, medical staff leaders and others through a post-leadership transition strategic planning process. It serves as an excellent opportunity for the new CEO to get an overview of both internal and external factors, how well the organization is positioning itself and performing, and to confirm the strategies already in place are sound. When a budget drives strategy, this opportunity does not exist.
Regardless of whether your organization has conducted a strategic planning process in the past, has used the budgeting process to drive strategies, or is transitioning to a new leader, Pinnacle Healthcare Consulting can provide a strategic planning solution that both drives your budget as well as fits within it.
By: Robert Thorn, MBA, FACHE