OBJECTIVES
As a person with knowledge of recent strategic plans developed by health services in Australia, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this issue and at times fails to understand the reasons or logic behind certain strategic implementations imposed on it.
By delving into this project paper, the author intends to have better insights into how the recent strategic plans developed by health services in Australia are thought up, formulated and then imparted down into its subsidiaries. The author hopes to have an in-depth understanding as to how the strategic plans of the health services in Australia enable them to compete effectively and profitably in this era of internationalization where competition is extremely intense.
In order to reinforce the learning objectives, two key focal issues were focussed upon i.e. innovation and diversity. Innovation was discussed with regards to the strategic plans of the health services in Australia where they were renowned for their developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the strategic plans of the health services in Australia.
ABSTRACT
This essay utilized the health care sector as the model entity to review its privatization schemes and how they dealt with critical situations. From the analysis, key trends in their strategies were identified, how they worked and their effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess the arguments favouring for health care privatization, its suitability to critical situations, during which its internal capabilities in relation to the strategy being followed was determined also. An overall analysis of the impact of health care privatization on the part of the government and the public sector was also conducted to assess and compare the benefits and disadvantages.
Finally, a funding mechanism to facilitate the privatization of the health care sector was then recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change was also addressed as well.
INTRODUCTION
Health care delivery services can be referred to as the processes that implement the policies and tasks necessary to satisfy the health care system’s customers, employees, and management effectively and efficiently. These delivery services focus on the careful management of the processes involved in the implementation and distribution of health products and services (Hansen et al. 2000).
More often than not, health care services in Australia don’t really have the capabilities to directly deliver their health care to all the constituents involved. This is the reason why privatization is often mentioned as a solution to this problem. Instead, these systems engage in activities that various schools of management typically associate with health care delivery. These activities include the manufacturing of health products, health products development, production and distribution.
However, an effective health care delivery system deals with all operations. Activities such as the management of health products purchases, the control of inventories, logistics and evaluations are often related with health care delivery systems. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, health care delivery systems include the analysis and management of internal processes.
ANALYSIS
Strategic Plan of Health Services Australia (HSA): Privatization
The impacts on citizens and the general public from the privatization of health care and other new developments in the health care sector are being reflected in Australia. Health services in Australia, for instance, are causing the continued withdrawal of patients from the Health Services Australia (HSA) towards the utilization of private medical insurance and medical services. It became obvious that the people had already grown tired of waiting for the HSA-provided medical services. In the year 2000 alone, almost 200,000 people transferred towards private health care services to avoid the public waiting list. There is a process in Australia, just like in most countries, of a very tedious privatization process, wherein the citizens have the obligation to look out for a sector that can provide ample medical services even at a high price (Martinsen et al. 1995). More often than not, this is the consequence of unjustified increase or decrease in public spending, resulting to an even more degradation of the quality of the public services being offered to the extent where these services can no longer be given to those in need.
Technically speaking, the strategic plan of privatization of health care of HSA can be subdivided into four (4) main areas:
1. Financing mechanisms: many countries have transformed financing mechanisms into obligatory insurance funding. These can be classified as private, as these are primarily efforts made by the government rather than non-government organizations. Only a number of countries have allowed voluntary organizations to gain control of public financing.
2. Private ownership of health care facilities: the holistic privatization of pharmaceutical companies and hospitals. There are instances where certain rehabilitated facilities have been totally privatized also, but with negligible total impact.
3. Employment: there have been a number of research studies conducted regarding private sector development, and it showed that privatization of employment contracts is not a big deal. When the privatization of the health care facilities is almost total, employment contracts may be transferred towards the jurisdiction of private organizations where the citizen works (Simopoulos et al. 1997).
4. Standard utilization of private contracts: this has become prevalent especially in the secondary health care where there’s a possibility to utilize private contracts for other purposes. Evidence from Australia indicates this is a potential source of problems where there have been consistent demands to reduce wages and working conditions.
Classification of the Planning Process
Planning is a necessary function within strategic plans of HAS towards privatization. In most health care services this process is often very difficult because of the fast rate of change and the occurrences of unplanned events. HSA uses several methodologies depending on the rate of demand of the customer and the price of the health services. Nevertheless, the objectives of HSA for every transaction do not change: efficiency and effectiveness.
Planning is being implemented by HSA in order for its activities and resources to be coordinated over time. This enables HSA to achieve its goals with minimal resource utilization. Planning also enables HSA to monitor the progress of their strategic plans at regular intervals and maintain their control over operations. Planning within HSA can be classified into four elements: scheduling, labor planning, equipment planning, and cost planning.
- Scheduling involves the specification of the beginning, the length or the duration, and end of the planned activities.
- Labor planning involves allocating the necessary personnel and delegation of responsibilities and resources
- Equipment planning involves identifying the types and needs in terms of equipments.
- Cost planning involves determining the costs and the possibility of their occurrence.
Critical Appraisal of the Strategic Plans
A. Feasibility
Health care privatization offers several advantages to both the government and the private sector itself. On the part of the government, health care privatization will certainly reduce its operating costs, and this can even enable the government to raise funds to pay for the country’s foreign debts. The government can also benefit from the reduction of government expenditures as the health care privatization will enable the government to convert financial losses into tax revenues.
On the part of the private sector, health care privatization will certainly boost the growth and development of private health companies and organizations in a particular country. This is caused by the establishment of an environment that enhances healthy competition resulting to high efficiency rates and significant reduction of costs.
B. Budgetary Processes
First, funds can be allocated where they can possibly be most efficient. For instance, they can be directed toward health privatization technologies that have tremendous potential in the long run. These health privatization technologies will encounter a hard time competing for market share. Second, the funding mechanism enables the level of the support for health privatization to be accurately identified. This funding mechanism can guarantee a minimum level of health privatization and technology development. At the same time, the entire costs of the health privatization program are limited by the funding levels indicated. Third, the funding mechanism will be enough to establish health privatization infrastructures and will help reduce further privatization expenses.
Credit:ivythesis.typepad.com
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