Background and Overview of the Health Service Organization



University of Michigan Strategic Plan

Team Three’s Name: The Planners

Lisa Whitlatch, Leonard Jones, Robyn Wright, & Nicole Smith

Siena Heights University

Southfield, Michigan

May 24, 2015

University of Michigan Strategic Plan

Background and Overview of the Organization

“The University of Michigan Health System is known nationally and around the world for excellence in patient care, education and research (U of M Health, 2015, para. 1).” U of M Healthcare has been recognized for multiple patient care specialties as well as additional public awards including: National Hospital Rankings and voted among America’s Best Doctors. U of M Healthcare was recognized as a top employer to work for in addition recognized for their research and education (U of M Health, 2015).

The University of Michigan Health System has been a forefront of medicine since the 1800s. In 1817, the University of Michigan was founded, and in 1848, the University of Michigan Medical School was formulated; opening their doors in 1850. In 1869, U of M Healthcare opened its first university owned medical facility in the United States; 20 bed hospital, no wards, and no operating rooms. Years after opening more pavilions were added on to the hospital, and a four-year medical school was adopted and introduced. In 1900, U of M became the largest teaching hospital in the country and then different department specialties were introduced (U of M Health, 2015).

U of M Healthcare system offers a wide range of services that range from basic science to disciplinary departments and programs. Interesting facts about U of M Healthcare is that:

Our patient care: Our 3 hospitals, 40 outpatient locations with more than 120 clinics, and extensive home care operation handle 1.9 million visits, more than 45,000 hospital stays in 993 beds, and much more each year; Our education: Both our Medical School and School of Nursing are highly ranked, and train thousands of tomorrow’s medical & science professionals; Our research: Our $466M research budget - - one of the nation’s largest – allows us to find new ways to understand, diagnose, treat, manage and prevent many human diseases; and Our financial performance: We’re strong and growing, with a total operating budget of more than $3.3 billion (U of M Health, 2015, para. 2).

U of M Healthcare holds multiple accreditations for all of their facilities including the approval from Joint Commission, which accredits and certifies a health care centers by recognizing them nationwide as a symbol of quality that the organization commits to and meets specific performance standards (The Joint Commission, 2015).

U of M Healthcare is dedicated to serving not only their community but also many other communities in Michigan including all the way up to the Upper Peninsula; even beyond state borders.

We provide more than $429 million worth of community benefit services each year, including more than $257 million in charity care and other uncompensated and unreimbursed care from our hospitals and health centers, as well as $172 million worth of training, research, outreach and more (U of M Health, 2015, para. 4).

Directional Strategies

Our directional strategy for the University of Michigan Healthcare consists of a broad range of strategies from primary direction, growth, stability, all the way to retrenchment. Our basic direction consists of our four fundamental goals of the organization; our mission, vision, value, and goals listed in detail below. Our approach is to achieve our goals by focusing on these key elements. We want to introduce more products, improve overall performances including turnaround times as well as other business measures that are associated with profit gain.

The stability at U of M that we currently hold will be maintained along with improved patient outcomes. Within reasonable steps in our reliable market, we want to improve our return on investments (ROI) in areas such as medical imaging and many other targeted areas. We plan to continue to control growth by adjusting to alterations in the market and adapt to change as needed. Retrenchment is important to our organization because we want to continue to improve employee performances and increase patient satisfaction. To control finances, we plan on outsourcing critical business functions including billing and coding to the professionals who are well trained and can handle such a workload. In return, we expect this to regain additional stability and strength towards an advantage within our competitive market while maintaining our exclusive reputation.

Every quarter our board of directors and trustees at the University of Michigan will meet to discuss and evaluate several key elements and components pertaining to the organization as a whole including:

Are we not doing some things now that we should be doing and vice versa? Are we doing some things now that we should do but in a different way? Are our strategic goals moving us towards the achievement of our mission and vision? Do our values fit the needs of our stakeholders? Do our fundamental values make sense? Have we addressed all critical successful factors? (Ginter, et al, 2013, p.197).

By discussing each element in detail, this gives everyone the chance to direct communication to be able to discuss any underlining issues freely in detail and invites clarification on a solid conclusion for the organization.

University of Michigan:

Original Mission- The mission of the University of Michigan is not only to serve the people of Michigan but all around the world through the highest quality of care and health services available; to provide the means to promote wellness and maintain the community’s health by demonstrating social responsibility through the hospital’s resources and committed to superior patient safety practices

Strategic thinking map: 1) Target customers and clients: Not only the people from Michigan but all around the world; 2) Principle services delivered: Offering all healthcare related services to be conducted internally; 3) Geographical domain of the services offered: To provide care beyond the borders of our own community; 4) Specific values: Demonstrating social responsibility to the public; 5) Explicit philosophy: To keep all of our patients safe through our superior patient safety practices.

Revised Purposed Mission: The mission of the University of Michigan is not only to serve the people of Michigan, but around the world as well by providing and delivering the highest quality of care possible while offering all health related services internally. The University of Michigan is distinctive because we will provide the means to promote wellness and maintain the community’s health and beyond by demonstrating social responsibility through the hospitals resources to be committed to superior patient safety practices.

Original Vision- To be recognized for exceptional healthcare of all modalities and services; to create a caring environment in which our patient’s needs are respected and valued; maintains an environment that promotes satisfaction and opportunities for our employees, medical staff, and patients, and continuous quality improvement.

Strategic thinking map: 1) Clear hope for the future: In five years from now gain additional clientele from all over and to become more profitable by gaining additional equipment and services. 2) Challenging and about excellence: Promote satisfaction and opportunities for our employees while making memorable experiences for our patients. 3) Inspirational and emotional: We want to create a very caring and comfortable environment. 4) Empower employees first: To empower our employees, become the culture that we believe in and practicing this daily. 5) Memorable and provides guidance: Keywords: Respect and Value.

Revised Purposed Vision: Our clear hope for the future is to be recognized by our patients, employees, and owners through memorable experiences for exceptional healthcare of all modalities and services; to empower our employees to create a caring and comfortable environment in which our patient’s needs are respected and valued; maintains an environment and culture that promotes satisfaction and opportunities for our employees, medical staff, and patients, and continuous quality improvement.

Values- The hospital will operate while promoting the highest professional and patient care standards with all patient encounters, medical staff, and employees; provides a positive environment that promotes and rewards quality care and high customer satisfaction. Our core values that will tie in this practice are Compassion; we care for others, Respect; we respect others, Diversity; we do not discriminate, Integrity; we are trained professionals, and Ethical; we do what is right.

Goals- Continue to be nationally and regionally recognized for the services, as well as the quality of care provided. We want to be the health care provider of choice not only locally but nationwide. We also plan to continue to strive for patient safety and satisfaction through a talented staff that is caring, committed, and compassionate. We want to maintain our high ethical standards and behavior practices while remaining cost-effective to stay profitable. At the same time, we want to keep our competitive advantage by keeping our patient experience the best it could be while treating them with the best equipment offered and with highest technology available. Our growth goals for the future also consists of adding additional services in such as newer and updated medical equipment with a particular interest in the field geriatric radiology; adapt to patient volume and growth along with other ancillary services to provide the quality of care that is expected and accommodate to all patient needs.

External Environment Analysis of the U of Healthcare System

The world has been experiencing changes in consumer behavior and preferences. Sudden changes can have a major effect on organizations. Most organizations have learned to adapt to the changes, and by doing so ensuring their continued survival. For one, the United States has been experiencing changes in population growth, emphasis on safety, age distribution, and career attitudes. The changes have affected the products and services rendered by organizations. For instance, changes in career attitudes have affected the jobs offered by the University of Michigan Healthcare system. Specifically, U of M healthcare ensures that its courses are in line with the current career needs of people (James, 2012).

Changes in age distribution also affect the products offered by organizations such as the University of Michigan Healthcare. They ensure that their products are age appropriate. Failure to provide the same goods can lead to the organization offering the wrong product or products that will not enable them attract the highest number of customers (James, 2012).

|Year |Under 18 Years |18-44 Years |45-64 Years |65 Years & Older |

| |

|Strengths |Weaknesses |

|Radiology Mission; to provide high quality medical care, to | |

|educate health care professionals, and to increase our | |

|understanding of health and disease. | |

|Geriatric Mission; Seeks to increase the span of healthy, active | |

|life for older adults through interdisciplinary clinical care, | |

|education, research and community service. | |

|Radiology Service Locations; University Hospital, C.S. Mott |Radiology Service Locations; The VA Hospital of Ann Arbor is located|

|Children’s Hospital, Cancer Center, Cardiovascular Center, |up the road from University of Michigan Health System. This is a |

|Taubman Outpatient Center, Off-Site Centers include; Brighton, |large Health System, which also caters to geriatric patients. |

|Canton, East Ann Arbor, Domino Farms, Med Sport, South Main | |

|Orthopedic Clinic and Briarwood. Additional Radiology Services at| |

|U-M University Health Service, and VA Ann Arbor Healthcare System| |

|Geriatric Service Locations; Geriatric Center Clinics and Turner | |

|Geriatric Clinic are located at East Ann Arbor Health and | |

|Geriatrics Center on the East Medical Center Campus. | |

|Radiology Services; Mammography, Cardiac Radiology, Computed | |

|Tomography, General Imaging, Gastrointestinal Radiology, | |

|Genitourinary Radiology, Magnetic Resonance Imaging, | |

|Neurointerventional, Pulmonary Radiology, Ultrasound, University | |

|Health Services, Vascular and Interventional Radiology. | |

|Patient Participation; Positioning aids are available in all |Patient Participation; Procedural tables are hard and uncomfortable.|

|departments to help with positioning of all patients for comfort.|Many procedures require the patient to remain lying still on the |

|Blanket warmers are available in each department for patient |table for a length of time. “Radiographers make use of special |

|comfort and warmth. |cushioning devices designed for the X-ray table to minimize patient |

| |discomfort and must pay particular attention to the physical warmth |

| |of the patient during his or her time of relative immobilization” |

| |(Chop, Robnett p.328). |

|Transportation; Public transit system has wide range of stops |Transportation; Parking is congested, confusing, and costly for |

|throughout Ann Arbor and stops routinely at all health center |visitors. The cost to park could prove difficult for senior patients|

|locations and clinics. The hospital recognizes difficulty with |on a fixed income if multiple appointments are needed. |

|parking. Valet parking is offered for $5.00 at each of the three| |

|main entrances. U of M recognizes challenges with parking fees | |

|and will stamp parking passes for patients coming to the | |

|Radiology department that validates their parking without fee. | |

|Department navigation; Signs are hung to help with navigation, |Department navigation; The Radiology department is large, spans |

|and maps are sent with appointment reminders. The health system |across three different floors at the main health system campus, and |

|offers transportation services for patients who need assistance |can be confusing to navigate through. |

|finding their way through the hospital for appointments. A | |

|patient transporter is sent to help guide the patient or visitor | |

|to their appointment, and will escort in a wheelchair if | |

|necessary for those who have difficulty walking to their | |

|appointment. | |

|Focused Radiology |Disconnect between divisions of Radiology Department. |

The radiology services offered throughout University of Michigan’s Health System support our geriatric patient care teams, and help to provide diagnostic results in a timely fashion that help to direct the care and treatment they receive. Care is often coordinated throughout the department whenever possible so that multiple appointments can be completed in one day, when desired for patients who travel great distances.

|Geriatric Radiology |

| |Resources |Competencies |Capabilities |

|Value (High or Low) |High |High |High |

|Rare (Yes or No) |Yes |Yes |No |

|Imitability (Difficult or Easy) |Difficult |Difficult |Difficult |

|Sustainability (Yes or No) |Yes |Yes |Yes |

The level of geriatric care and treatment offered within radiology at the University of Michigan is a competitive strength. The established aging population of residents within Washtenaw County provides ample patient population for this focus area. On top of local aging population, the University of Michigan also attracts patients from across the state, and nation for treatment from many of their specialty care areas. Since Radiology is a diagnostic necessity for treatment planning and tracking for these areas, they play an intricate role in the patient care.

A prime example of the teamwork seen within University of Michigan’s geriatric radiology care is the collaboration that goes into treating patients for transcutaneous aortic valve replacement (TAVR) procedure. The TAVR procedure in a non-surgical procedure in which patients that have severe aortic stenosis can undergo valve repair transcutaneous through a subclavian or femoral artery. The majority of these patients are geriatric patients. “Without aortic valve replacement, 50 percent of patients will not survive more than an average of two years after symptoms begin”(University of Michigan, TAVR, Para1). The University of Michigan has performed the most aortic valve implants in Michigan and ranks among the top in the country in valve replacement experience (University of Michigan, TAVR, Para2). University of Michigan’s Cardiovascular Center was “the first hospital in the state of Michigan to offer both the Edwards Heart Valve and the Medtronic Core Valve for patients with limited surgical alternatives” (University of Michigan, TAVR, para2). These patients require detailed and coordinated care. The clinical care team does extensive workups on these patients prior to any surgical intervention to determine eligibility for these lifesaving procedures. Patients who are coming for a TAVR/TAVI procedure do not typically have many other options. The entire cardiovascular team works closely with the Cardiothoracic Radiology division to achieve a quality CT scan, and 3D post processed measurements and 3D volume rendered images. Each patient is discussed at a weekly meeting with the entire TAVR team to review patient status, measurements, and candidacy for surgery. All divisions work diligently together to provide these patients with the best possible outcome, and this geriatric care is what helps University of Michigan remain a leader in the field of geriatrics.

Organizational Structure

|Organizational Structure |

|TYPE: Divisional |

|Strengths |Weaknesses |

|Leader in the specialty and level of geriatric care offered.|Major competitors who could expand scope of practice to |

| |focus on geriatric. |

|Large nationally recognized institution. |Large institution that is difficult to navigate. Parking |

| |is challenging and limited on main Health System Campus. |

|Organizational Structure |

|TYPE: Divisional |

| |Resources |Competencies |Capabilities |

|Value (High or Low) |High |High |High |

|Rare (Yes or No) |No |Yes |Yes |

|Imitability (Difficult or Easy) |Difficult |Difficult |Difficult |

|Sustainability (Yes or No) |Yes |Yes |Yes |

The treatment of geriatric patients at the University of Michigan spans across all patient modalities and specialties. The geriatric patient population is growing at a steady rate, and the ability to properly treat and care for these patients is important to the Universities success as a leader in healthcare. The Radiology department plays a vital role in the treatment of these patients providing quality and timely diagnostic treatments and results for preventative care, treatment plans, and follow- up care. The ability to work as team collaboratively towards the patients well begin is what makes up the Michigan difference, and provides optimal care for the geriatric patients treated here.

Few competitor hospitals are able to offer the level of geriatric care, and the expertise and skill level the University of Michigan can offer. The hospital is a leader in both geriatric care and diagnostic imaging technology and coupled the care team is not easily challenged. The hospital recognizes the challenges navigating a large institution like the main campus that can face elderly patients and has tailored the East Medical Campus off site to offer the majority of services the geriatric patient may need as outpatients in one convenient, smaller, easy to access and navigate location.

Competition will likely grow as the elderly patient population continues to grow. With the University of Michigan being the leader that it is today in the field of geriatrics the hospital is a step ahead of the competition in regard to experience, and level of care offered to its geriatric patients. Competition will arise, but the University has positioned itself at the top of the market, and it will be challenging any local competition to rank above them.

Strategy Formulation and Evaluation

Geriatrics is a branch of medicine concerned with catering for the treatment, clinical, remedial, preventative, and social aspects of illness in old age. Radiology on the other hand refers to the medical practice of using images of the body physiology, allowing specialists to diagnose some diseases and treat them without necessarily performing complicated operations on patients. Geriatric medicine is of crucial importance in the United States and inclusively in the whole world. Geriatric preventative and supportive medicine caters for the elderly in the society and the inflictions they undergo (Rowe, 1999). It would be beneficial to the University of Michigan to offer services like geriatric radiology to the community. In this age where medicine has become as competitive as any other profession, the University of Michigan is best placed to expand the scope of service provision in this area.

According to the analyzed information on the University of Michigan services provision, service area competitor analysis, and the external environment analysis, the assessed information provides that Washtenaw County has an established population of ageing residents who would provide a ready market for the geriatrics medicine. In addition, there is also a significant lack of geriatric services in the area, providing the services will enable the University of Michigan health care production to keep up with competition from the other healthcare providers in the Washtenaw County; such as St. Joseph Mercy, VA Health system, and Chelsea Community Hospital. Provision of geriatric medicine and services will catapult the University of Michigan healthcare to the proportions of other major competitors around the country like John Hopkins University and Yale University.

The United States of America being a developed country means life expectancy is one of the highest in the world, which provides an opportunity to serve the elderly with geriatric services. The population of the county is rising at the rate of 2,000 people per year, making it prime for expansion. Only Veterans Affairs hospitals cater primarily to old people but it deals specifically with the veterans leaving the other residents unattended. The University of Michigan could take advantage of this gap in the County.

With reduced invasive interventional medical procedures, the elderly have a chance at ensuring that their health is looked at with very little risk. The main purpose for setting up this service is to ensure that the elderly patients with multiple comorbidities a safer means of treatment. Radiological procedures are not only non-invasive, but they also look into the different risk factors and simultaneously reduce them.

Adaptive Strategy

The University of Michigan will be able to expand the scope of geriatric radiological preventive and supportive medicine through the inception of product development coupled with a little injection of financial prowess and assistance. Using product development as an adaptive strategy by the University presents a challenge for the institution. The United States of America as a whole is at a weak place economically at the moment. Managing major institutions in the United States is a difficult affair, let alone expanding or developing the product. According to the economic factors evaluated, the University is susceptible to the low economic growth in the country. Product development will propel the University of Michigan outside its perceived market and into a new and developing market. Introducing geriatric radiological services in Washtenaw County will be dependent on certain factors.

The development cycle or speed at which the service is introduced in the market and time, as Washtenaw’s four largest hospitals are all expanding begs to ask how long it will take the University of Michigan to eclipse the competitors with costs and quality of the service provided. Product development is susceptible to product quality evaluation where the residents of Washtenaw County and patients who visit the University of Michigan Health system. The patients will evaluate the superiority of the service offered by the University relative to competing alternatives. There are quite a number of benefits that the use of radiology has already offered elderly care. Some of these include; peripheral arterial vascular disease, airway stenting for tracheobronchial strictures, palliative stent placement for gastrointestinal tract cancer, cement stabilization of osteoporotic vertebral fractures, and thermos-ablation of solid organ malignancies are all conditions that most commonly affect the elderly. The development of preventative geriatric radiology will cater to some of the following afflictions in the elderly, preventative care through constant screening of prevalent ailments associated with old age like abdominal disease, breast cancer, cardiovascular disease, colorectal cancer, and lung disease, (Mahon, Flaherty, and Mahon, 2011). This being the case, surgery is a common procedure during the diagnosis and treatment of these illnesses. However, with the use of radiology, the mortality and morbidity of these procedures can be significantly reduced.

The following methods will be utilized to evaluate, the BCG matrix. BCG will evaluate geriatric medicine portfolio in the University’s marketing and sales planning. The use of this evaluation method will offer intelligence on the productivity of geriatric medicine, market share and growth rate. The analysis will classify the portfolio of geriatric medicine into two categories namely, the relative market share (competitive position) and growth rate of the specific industry (industry attractiveness.) These two categories will assist the company to understand the profitability of geriatric medicine, specifically radiology, by analyzing cash injection to cash generation demonstrating a prime zone for investment. BCG matrix will identify whether investing in the category they want to expand in is beneficial or not beneficial. BCG matrix is compatible with product development strategy and the University will evaluate whether the production of geriatric medicine is one of the four quadrants (Stars, Question Marks, Cash Cows, or Dogs.) Using BCG in analyzing, applying the information analyzed on the market, and the environment of Washtenaw County, geriatric radiological medicine will fall in the category of the “Stars”.

Another method of evaluation the University can use to ascertain the productivity of this strategy is the TOWS analysis tool, this analysis tool is a variant of SWOT analysis tool with TOWS providing analysis on the External environment. The University will use the tool to analyze the following.

|U of M |Internal Strengths |Internal Weaknesses |

| |Major healthcare provider in Washtenaw County |Major competitors locally (St Joseph |

| |(considered the best). |Hospital, Chelsea community hospital, VA |

| |Large service provision base (health center, |veterans Hospital and the like) |

| |children’s hospital, Cancer center, |Major Competition Nationally (Yale |

| |Cardiovascular center and women’s hospital) |University, John Hopkins University, |

| |A reputable foundation to build on ( One of the |Columbia University and the like) |

| |best universities in health education in the |Raw industry with unknown risks |

| |country) | |

| |A large budget- approximately $450 million- to | |

| |build on | |

|External Opportunities |Future Quadrant |Internal Fix-it Quadrant |

|Established residents, almost 60% own |A growing geriatric population aligns with the |Realize that the needs of geriatric veterans|

|their own homes. |mission; providing high quality medical care and |will likely seek care at the VA hospitals, |

|Increasing life expectancy in the |to seek to increase the span of healthy, active |and to develop plans to specifically cater |

|country and county inclusively |life for older adults. |to those geriatric patient that have limited|

|Mix of different settings, providing |Develop a geriatric care model through research, |medical care available. |

|opportunities |and offering education utilizing the current | |

|A rather open market, with no major |equipment available. | |

|competition or a large influx of |Develop educational opportunities for the | |

|competitors |development of the geriatric care process. | |

|External Threats |External Fix-it Quadrant |Survival Quadrant |

|The competition in the region |Developing specialized, affordable equipment, and|Maintaining current practices without |

|The products lacking in quality |procedural policies for the specialized needs of |diminishing the current care provided. |

|The budget might not be enough to cater |the geriatric population. | |

|for the establishment of the system | | |

According to the information in the TOWS analysis work tool, University of Michigan falls in the viable quadrants and the production and service provision of supportive and preventative geriatric medicine can be beneficial.

Market Entry Strategy

Internal Development

The University of Michigan Health care system, in an effort to orchestrate an entry into the market of geriatric radiological preventive and supportive medicine, will utilize the beneficial strategy of internal development normally utilized by new firms entering a new unknown market but in a related industry. Internal development strategy is built on the utilization of the organizations own capabilities and resources, while this might be the case the organization may seek other resources from outside its boundaries despite a tendency towards a local search (Lee & Leiberman, 2007). Internal development involves sourcing from the organizations different divisions and functional departments while depending on some external agents like contractors, suppliers, partners, inventors etc.

The University of Michigan is best placed to adopt an internal development strategy rather than other strategies like Acquisition. Acquisition poses more challenges, is expensive to implement and places the organization at risk of losing its investments. Other market entry strategies like outsourcing, internal or external exports, and subsidiaries among others are not in line with what the University is trying to develop. External economic or market conditions governing or surrounding the University are adequately placed for this strategy, the population is increasing in the United States and around the world making internal development an adequate way of defining the level of services and medicine it is going to deliver to the people in line with the population and increasing life expectancy.

The strategic alternatives for SPACE quadrants demonstrates a competitive strengths in market strategy, for service development and movement into the marketplace.

Factors determining environmental stability = -5.8 | | | | | | | |Factors determining service category strength = 5.1 | | | | | | | |Factors determining competitive advantage = -3.9 | | | | | | | |Factors determining financial strength = 4.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Financial Stability | | | | | | | | | | |Conservative | | | | | | | | | |Aggressive | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |4.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |- 3.9 | | | | | | | | |5.1 |Service Category Strength | |Competitive Advantage | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |-5.8 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |Defensive | | | | | | | | | | |Competitive | | | | | | | | | | |Environmental Stability | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

The changing economic conditions make outsourcing as an expensive method of providing geriatric radiologic medicine due to the amount of resources and finances required to enroll another organization to run the production. University of Michigan has an annual budget of $3.3 billion and a wide range of patient care consisting of three hospitals, 40 outpatient locations with more than 120 clinics, and extensive home care all handling 1.9 million visits. While, the University has more than 45,000 patients stays in 993 beds, and much more each year. These statistics dictate that the University is well equipped in resources to handle the internal development of geriatric radiology supportive and preventative medicine. The extensive wide range of health care provision of University of Michigan clearly places the University in capable capacity with the power to handle another additional and similarly profitable section or unit.

The competition offered by the other healthcare organizations in Washtenaw County and around the country such as St. Joseph Mercy Ann Arbor Hospital, and national powerhouses like the Veterans Hospital Ann Arbor Healthcare System allows little room for risky endeavors. “In five years from now gain additional clientele from all over and to become more profitable by gaining additional equipment and services” (Epstein, 2012) as analyzed in the beginning of this document elaborates clearly the way the organization is headed. This makes internal development strategy all the more conducive for its ability to have the organizations dictate the quality of services it is going to offer. These evaluations make internal development the strategy of choice for the University of Michigan.

Competitive Strategies

Strategic Posture

When any organization ventures in the market, it must adopt a certain strategic posture to apply its business strengths to the long-term and current needs of the market place. When a business incorporates a strategic pose, it instigates the broader strategic planning process (Kokemuller, 2014). The University of Michigan is a big organization and a market leader in health care provision in the Washtenaw region consequently; they should adopt shaping the future as a prospector in the strategic posture. The prospector position in this strategic posture ensures the Universities vision of gaining global recognition for exceptional healthcare of all modalities and services and creates a caring environment in which our patient’s needs are respected and valued. This prospector competitive strategy is aligned with innovation and capturing new market opportunities. It maintains an environment that promotes satisfaction and opportunities for our employees, medical staff, and patients, and continuous quality improvement. In accordance with the Universities internal resources and capabilities, it has the ability to take an integral position in the industry and shape its future.

The University’s wide ranges of healthcare services are sufficiently placed to support this posture. According to information analyzed about University of Michigan, it is possible to detect that it is the leading provider of healthcare in the region; in short, it is already shaping the future in the region (Epstein, 2012). Washtenaw does not have any other provider of geriatric radiological preventative and supportive medicine or any organization providing this kind of service, maybe VA veteran’s hospital to a lesser extent. The facilities and resources coupled with the ever-increasing population of Washtenaw provide the University with the perfect platform to incept this strategic posture. The internal resources of the University consist of three big hospitals, forty outpatient locations with more than one hundred and twenty clinics, and extensive home care all handling one million nine hundred thousand visits with, more than forty five thousand hospital stays in nine hundred and three beds, and much more each year (Epstein, 2012). In advent with these capabilities, resources, favorable external conditions, and the monopolistic tendencies of the University in the region endorse the posture.

Strategic Position

The strategic position means the intended approach and objectives the organization will use to govern the market it wants to indulge and relative within its industry matters for performance. A strategic position analyzes the value the organization is going to make compared to its rivals. The University of Michigan will need to devise its desired position in the future subject to the present and foreseeable developments and the plans in place to make the positioning a reality (J. Trout , 2014). Considering the University’s domination in the region, it should adapt multi-segment strategic position in the geriatric market segment with the aim of taking a market leader strategic position in the near future (J. Trout , 2014). By means of a differentiation position, the University will add value to the service of geriatric radiology almost naturally due to the highly skilled, specialized teams, access to leading research, and the reputation of quality and innovation that already exists with the University of Michigan. This strategic exclusively means positioning geriatric radiological preventative and supportive medicine to attract consumers from different segments. This strategy will be appropriate for the University’s purpose of venturing the geriatric market since it requires minimal investments, provides economies of scale, and avoids dispersion of managerial attention. It is viable in the earlier periods of a products cycle. The intentions to become a market leader for University of Michigan bode well with the strategic posture of the University, which is shaping the future of geriatric medicine in Washtenaw County and in the whole County.

External factors are conducive for the inception or the adoption of the position; the competitors in the region do not have enough resources to compete with the University while the population and development levels in the region are increasing (Epstein, 2012). The University also has the capabilities and internal resources that will enable the adoption of this position. The position bodes well with the University ambitions, goals, and visions. The mission of the University of Michigan is not only to serve the people of Michigan, but all around the world through the highest quality of care and health services available. In addition, to provide the means to promote wellness and maintain the community’s health by demonstrating social responsibility through the hospitals resources and committed to superior patient safety practices (Epstein, 2012).

Summary and Conclusion

Overall the University of Michigan strategic plan was well thought out and planned very carefully to reflect the past history of the organization, the present day, and the future of the University of Michigan Healthcare System as a whole. Carefully planning each section out we wanted to make sure that the plan expressed commitment to provide what we feel is the best healthcare available. We provided very detailed ways to achieve our intended goals and to live up to our culture’s needs.

We understand that each goal will take time and dedication so therefore this strategic plan will consistently be monitored and evaluated; we will make any required adjustments to ensure that we achieve our desired results. As the years pass, the University of Michigan Healthcare System will undergo many transitional changes and our strategic plan moving forward will reflect each change to accommodate future challenges and opportunities. We will do our best to remain competitive in the market and live up to our mission statement: “The mission of the University of Michigan is not only to serve the people of Michigan but around the world as well by providing and delivering the highest quality of care possible while offering all health related services internally. The University of Michigan is distinctive because we will provide the means to promote wellness and maintain the community’s health and beyond by demonstrating social responsibility through the hospitals resources to be committed to superior patient safety practices.”

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