Comprehensive Healthcare Strategy for Bupa: Challenges, Stakeholders, and Strategies

This presentation discusses the challenges faced by Bupa in the aged care sector in Australia, the perspectives of stakeholders, and strategies to improve operational excellence and quality. It also includes Bupa's strategic objectives and key recommendations.

COMPREHENSIVE
HEALTHCARE
STRATEGY

Introduction
 The number of aged population in Australia is increasing
 One in every 7 Australians are 65 years or older as of 2017
 14% of the Australian population consisted of elderly
people as of 2011 and the percentage is expected to reach
25% by 2101
 There has been an increase in aged care recipients
 Therefore the aged care sector has a significant
opportunity to grow in the market and achieve success

Bupa
 One of the leaders in the Aged care services
sector
 70 Residential care facilities are operated across
Australia by Bupa
 More than 6700 residents are cared for by the
service providers
 Leaders in healthcare insurance sector
 Some important services include: specialized care
for dementia, respite service and residential
service.
 Leading privately owner insurance provider in the
country

External challenges faced by
Bupa
 Ethical Dilemmas related to the care of
aged people
 Strict Governmental policies and
regulation
 Market competition
 Lack of education
 Cultural diversity
 Reduced accessibility to aged care
services especially in the remote areas
 Diversified population

Internal strategic challenges
faced by Bupa
 Related to process: Poor operational integrity,
long weighing time
 Related to People: poor communication, poor
team coordination, resistance to change
 Related to Assets: Reduction of profits by 15%
in 2016, poor provision of resources to address
emergency cases in residential care homes.

How the challenges are
related to the perspectives
of the stakeholders.
 The main stakeholders in this
context are: owners, board of
directors, the government, clients,
suppliers, employees and business
partners.
 Different stakeholders exert
different powers and influences on
the organization and have different
vested interests and perspectives
 The tables outlines the different
stakeholders, their possible
perspectives, expectations as well
as the vested interest and power
they hold over Bupa.

How the challenges
are related to the
perspectives of the
stakeholders.
 Organizational Theory of communication suggests that
effective communication is necessary for better team
performance and team coordination (Shafritz et al. 2015).
 The theory of Operational Excellence also posits that
operational integrity is essential for operational excellence
and efficiency (Shafritz et al. 2015)
 These two factors can therefore impact all stakeholders
 Factors such as cultural barriers, demographic diversity can
impact all the stakeholders involved
 Restrictive policies of the government can mainly impact
the board of directors, owners and customers
 Ethical challenges can impact the entire organization and
the clients

Approaches of the competetors
 Diversification of services and products by Goodwin
Aged Care
 Using culturally competent care by Columbia Aged
Care Services
 Excellence in Service Quality by St. Vincent’s Care
Services
 Using mobile care services by Australian Regional &
Remote Community Services
 Effective pricing of services by Aged Care
Community Services:

Importance of the
strategies
 Through diversification of services a
diversified service range can be developed to
suit the individual needs of clients
 Cultural Competency can foster better
interaction with a culturally diverse clientele
 Quality excellence can foster trust and better
image of the brand.
 Mobility of services can improve accessibility
of the services in remote regions
 Effective pricing strategies can make the care
services more affordable for more clients

The Vision
 To maintain the position of Bupa as a market
leader by ensuring safe and high quality service
through excellence in organizational processes and
operations and developing skills in the workforce

The Mission
 Continually improving the quality
and standards of the service
through effective service quality
management strategies
 Improving the service by
addressing the five dimensions of
service quality
 Promote and enhance the health,
wellness and quality of life of the
clients and working towards their
best interests.
 Creating an environment that is
safe, dignified, respectful,
supportive and inclusive for the
clients

Business Model Canvas
 Key Partners: Healthcare Administrators, professional workers, case
manager, public relations, marketing division, analysis
 Key Activities: improvement of service quality, safety, accessibility,
appropriateness and responsiveness; diversifying products and services
 Key Resources: Funds, infrastructure, data, human resource
 Value Propositions: Gain in service Quality; Gain Creators- Excellence in
operation; Pain: Internal and external challenges; Pain Relievers:
Effective leadership
 Customer Relations: Long term, community based, personal support
and transactional
 Channels: Mobile care services, residential care, community care
 Customer Segmentation: Geographic location- Australia, Demography-
Age 65 and above, retired, upper and upper middle class income
 Cost Structure: Taxes, salaries, employee benefits, operations,
infrastructure, transport, utilities, administration and security
 Revenue: Services, Consultations, external funding

Business Model of Excellence in
Operations
 Measuring, analyzing and improving operational
performance and efficiency using Six Sigma and Total
Quality Management (TQM) strategies
 Developing strong organizational and operational
policies and procedures
 Streamlining the operational processes to make them
more cost effective and improve quality
 Using cost leadership to reduce unnecessary expenses
and improve the value for money of the products.

Customer Intimacy
Strategy
 This strategy places the expectations and needs of the
customer at the core of the care design process and planning
the operational policies
 Using the model, diversification of the services of Bupa can
be fostered to create individualized care services for the
customers.
 Thus through an intimate relation with customers, more
personalized service can be developed

How to minimize impact of
the operational peocesses
 The operational processes can impact both the
environment and the society
 This can adversely impact organizations image
 Therefore it is vital to understand and implement strategies
to mitigate the impacts
 Reducing impact on Environment: This can be done by
recycling waste and reducing waste production, optimizing
the usage of resources, using environmentally sustainable
strategies, reducing emissions and carbon footprint
 Reducing social impacts: Social and community
involvement, free health check for the local people, free
care programs for the aged, education and empowerment
for the elderly, advocating for the rights and wellbeing of
the elderly

Strategies that can be
used:
 Good leadership
 Optimizing operational expenses
 Management of skills
 Improving reach to clients
 Improve compliance to policies and
standards
 Implementing technological advances
and innovation in care design
 Improve environmental sensitivity in the
care
 Operational transparency

How the strategies can
help
 Operational transparency can improve the trust and reliability of the
organization and therefore help all the stakeholders
 Compliance to standards and policies of service can earn trust from the
government and support board of directors
 Technologies can provide a competitive edge to the company and
improve the operational processes and efficiency and therefore impact all
stakeholders.
 Environmental sensibility can improve optimization os resource use and
therefore favor the entire organization.
 Innovation, diversity and quality in service can improve service
standards, and appropriateness and thus impact the clients and providers
 Effective leadership can create an overall improvement in the
organization and thus impact all stakeholders

Bups’s Strategic
Objectives
 Objective 1. Increase share in the Australian market and
improve market capture
 Objective 2: Improve performance through effective leadership
 Objective 3: Implement environmentally sustainable policies
and procedures
 Objective 4: Streamline operations and reduce unnecessary
expenses
 Objective 5: Using strong ethical principles to guide operational
processes

Key Reccomendations
 Using effective change management to improve operational
excellence and quality
 Focusing on the ethical factors related to the operations
 Ensure equal rights, safety, autonomy and justice of the
residents and patients
 Using effective communication strategy to imrove team
performance and cooperation
Ethical
consideratio
ns
CooperationEqual rights

References
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 aihw.gov.au 2019a. Older Australia at a glance, Aged care - Australian Institute of Health and Welfare. [online] Australian Institute
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Thank You

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