Read Case 6, "The Health Care Industry" from Strategic Human Resource Management

Read Case 6, "The Health Care Industry" from Strategic Human Resource Management - A general managerial Approach by Charles Greer, then answer the following questions 1-4.

Part II

Develop an action plan for a Hospital Administrator that deals with the upcoming trends in the healthcare industry. Specifically describe how the organization can meet their future needs and how they will prepare employees for their employment future.

Case 6 - Health Care: The Health Care Industry

The health care industry has been going through major structural changes in order to become more efficient to help stem rising costs of health care. During the previous decade, health care organizations hired MBAs to help streamline their organizations, introduce new efficiencies, and market their services. In addition, many physicians are obtaining MBAs in order to help introduce better management into the health care industry. Health maintenance organizations (HMOs) continue to hold down costs by emphasizing prevention, by limiting access to specialists, by requiring co-payments to make patients more sensitive to the costs of healthcare, and through increased bargaining power resulting from their size. There are also have been mergers among health care organizations have encountered financial difficulties and some have failed. The federal government also tried to hold down costs by limiting Medicare and Medicaid reimbursements.

At the same time that the health care industry is struggling to become more efficient, the demand for health care is increasing ands expected to increase in the future because of an aging population, increase affluence, and advances in technology. By 2008, 7.2 percent of the U.S. population will be 75 years or older. This compares with 5.2 percent in 1978. Actual employment levels in selected heath care occupations in 1998 and projections for 2008 are as follows:

Occupation 1998 2008

Physicians 577,000 699,000

Dentists 160,000 165,000

Optometrists 38,000 42,000

Physician's Assistants 66,000 98,000

Registered Nurse 2,079,000 2,530,000

Physical Therapists 120,000 161,000

Respiratory Therapists 86,000 123,000

Dental Hygienists 143,000 201,000

Clinical Lab Technologist & tech 313,000 366,000

LPN and LVN 692,000 828,000

Speech-Language Pathologist & Aud. 105,000 145,000

Questions:

1. Most people have some familiarity with hospitals and the healthcare industry. Based on your knowledge, in which quadrant of the staffing policies matrix (figure 4-3; attached) do you think hospitals are located? Are the staffing policies of hospitals more like baseball teams, academies, clubs, or fortresses? Explain your resoning.

2. Examine the projections for the various health care occupations specialties. Are there substantial differences in the rates at which employment is expected to grow in the different occupations? How have the strategic actions by health care organizations, such as mergers, shifts to preventative approaches, and the focus on cost control, affected the expected growth of the different specialties? How is the market demand for medical care expected to affect employment in the different specialties?

3. Given the uncertainty of the demand for health care workers, how can health care organizations be prepared to meet their future needs for such employees? How can they help their employees prepare for their employment future?

4. Do Porters’ competitive strategies of cost leadership, differentiation, and niche or focus apply to hospitals or healthcare organizations? Explain.

Deliverable Length: 3-4 pages to also include references and cite in APA format.

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