Principles of Management Lecture 1  Planning – goals, objectives, methods, resources  Responsibility – the duty to carry out an assignment or

needed conduct a certain activity

Majority of healthcare expenditures are from:  Organizing resources  Delegation – process of assigning a task to a
 Hospital Care (30%)  Leading- set direction for the organization subordinate
 Providers/physicians (20%)  Controlling or coordinating the systems  Authority – formally granted influence of a position
 RX drugs (10%) Modern Views  Line authority – the type of authority where managers
The system is “Broken”  Energize have formal authority over their subordinate’s activity
 Access – underinsured, uninsured  Empower  Staff authority – the type of authority where
 Affordability – cost to patients and healthcare  Communicate managers’ influence line managers through staff’s
 Accountability – outcomes DO NOT justify the costs  Support specialized advice – HR, legal, finance
Factors Impacting Health Care - PESTEL Management Theories Environmental Scan
 Political  Scientific management theory – large industries,  Strengths - internal
 Economic measurement and specification of activities and  Weaknesses - internal
 Social results, standardize tasks, reward and punishment  Opportunities – external
 Technological system  Threats – external
 Legal  Bureaucratic management theory – divide Analyze the Market (5C’s or market audit)
What kind of structure does the US healthcare system have? organizations into hierarchies and establish strong  Company
 NONE lines of authority and control, standard operating  Consumers
Subsystem model of healthcare in the US procedures  Competition
 Middle class  Human relations movement – more attention to  Channel of distribution
 Poor individuals, organizations would prosper if workers  Controls (regulations)
 VA prospered as well, contemporary theories Components of Business Plan
 Military Strategic Planning  Executive summary
 Public programs  Clearly defines purpose of organization and its goals  Background and description
Titles of ACA  Communicates goals to organization and externally  Market analysis and strategy
 Title I: quality, affordable health care for all Americans  Develops a sense of ownership of the plan  Operational structure and process
 Title II: the role of public programs  Efficient use of resources  Financial projections
 Title III: improving the quality and efficiency of health  Provides a base from which progress can be measured  Schedule and action plan
care  Incorporates all opinions  Critical risks and opportunities
 Title IV: prevention of chronic disease and improving  Provides the glue to keep employees together  Exit strategy
public health When should strategic planning be done?  Conclusion
 Title V: healthcare workforce  When an organization is just starting  Supportive documents
 Title VI: transparency and program integrity  In preparation for a new venture Planning, Organizing, Leading, Controlling
 Title VII: improving access to innovative medical  Review once a year for budget Leadership styles
therapies Strategic planning process  Affiliative – people first, task second
 Title VIII: community living assistance services and  Describe the organization  Directive – the autocrat – Do as I tell you!
supports act  Identify strategic direction (vision, mission, values)  Authoritative – the visionary
 Title IX: revenue provisions  Conduct an environmental scan  The participative – democrat
 Title X: reauthorization of the Indian health care  Specify goals, objectives, strategies and tactics  Coaching – the transformational or servant leader
improvement act  Link objectives and outcomes (monitoring and  The pacesetter – Do it Myself
Purpose of ACA evaluation plan) CMS – single largest purchaser of healthcare
 High rate of uninsured  Implementation Elements of Marketing
 Unsustainable spending  Monitoring and feedback  Product/service
 Focus on preventative care Components of organizational structure  Price
 Improve health outcomes  Horizontal – types of people or units or job functions  Place
 Address disparities in health and respect to income  Spatial – physical separation between units  Promotion
and demographics  Vertical – reporting structure (chain of command) Market Audit
Management  Formalization – of job functions (defined roles)  Consumer or stakeholders
 The organization and coordination of the activities of a  Centralization – scope of decision making  Competition
business in order to achieve defines objectives Other terminology  Channels of distribution
 Production based on: men, machines, materials,  Division of labor – dividing up tasks  Controls (Regulations)
money, management of these factors  Span of control – scope of control of a manager  Company (industry)
 Departmentalization – grouping based on tasks
 Demand Type of marketing Example
Negative Conversional Anti-vaxxers
No Stimulational MTM
Latent (unfulfilled) Developmental Demand, no drug
Declining Remarketing
Irregular Synchromarketing Seasonal (allergy)
Full Maintenance BOGO
Overfull Demarketing Limit product
Unwholesome Countermarketing Opioids

Types of Product Differentiation

Undifferentiation One product Any/all groups Ear drops, tablets
Concentrated One product One specific group Any new RX drug
Partially Many product One group Diff doses, dosage
differentiated forms forms, combos
Fully Many product Many groups Diff doses, dosages,
differentiated forms and for diff indications

Product
 Branding
 Brand awareness
 Brand image
 Brand equity
Types of strategies
 Market penetration
 Market development
 Product development
 Diversification
Pricing policy and strategy
Factors that impact price Factors that pricing impacts
Cost Sales volume
Demand sales revenue
Competition Market share
Experience Competitive position
Customer perceptions Company image
Profit goals Profitability