Strategic Management Accounting in Healthcare

This assignment examines the role of strategic management accounting in the healthcare industry, specifically within Regis Aged Care Limited. It delves into how various techniques can be used for project selection, planning, implementation, control, and monitoring. The analysis considers the changing landscape of healthcare, driven by factors like an aging population and evolving service models. Understanding these principles is crucial for ensuring the success of projects within Regis Healthcare Limited.

Running head: STRATEGIC MANAGEMENT ACCOUNTING
Strategic Management Accounting
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Table of Contents
Question 1........................................................................................................................................2
Enhancing value chain within Regis Healthcare Limited by using various strategic management
tools..................................................................................................................................................2
Question 2........................................................................................................................................4
Examining and applying the techniques for developing, implementing and monitoring strategies4
Question 3........................................................................................................................................5
Analyzing the strategic management cycle and the leadership role of professional accountants in
strategic management......................................................................................................................5
Question 4........................................................................................................................................6
Defining the role of organization and value chain analysis by applying the analysis to the design
and structure of value by adding activities, value drivers and value chains....................................6
Question 5........................................................................................................................................7
Analyzing the characteristics of effective strategic and corporate social responsibility related
performance measurement and control systems..............................................................................7
Question 6........................................................................................................................................8
Describing and applying strategic management accounting techniques to the selection, planning,
implementation, control and monitoring of projects.......................................................................8
Reference List..................................................................................................................................9

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Question 1
Enhancing value chain within Regis Healthcare Limited by using various strategic
management tools
Value is such an ambiguous term in healthcare sector. Rather, it can be referred to other
things such as speed of delivery, quality and availability. Regis Healthcare Limited operates in
Australia and the company needs to address the rising budgetary costs of healthcare that defines
the value in healthcare (Regis Aged Care 2017). Healthcare expenditure can be seen as large
component in a country. Unlike other industry, business models as well as value propositions
have changed largely over a time span of 20 years.
Michael Porter described the term value chain as a selection of process as well as inputs
and outputs as it help in producing a particular product or service. Here, Regis Healthcare
Limited has typically grown over time that leads to high levels of duplication of providers as
well as disjointed services in general (Peppard and Ward 2016). The value chain of Regis
Healthcare Limited is quite similar to other industries that include manufacturers, distributors,
wholesalers as well as professionals and payers such as health consumers. Michael Porter
suggested or proposed a six-point strategy that organizes care for the patients who visit Regis
Healthcare Limited. It is important to measure the outcomes as well as cost for every patient at
Regis Healthcare Limited. It is essential to integrate care delivery as well as breakdown in the
local nature of care delivery for aged patients at Regis Healthcare Limited. The aged care
facilities should build an enabling information technology platform for the aged patients.

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Question 2
Examining and applying the techniques for developing, implementing and monitoring
strategies
Regis Healthcare Limited is one of the leading operators of aged care facilities in and
across Australia and listed in Australian Stock Exchange with an estimated market of 2.5%. This
particular aged care facility is growing and ageing population in Australia that has strong
demand for health services. It had increased patient volumes as well as specialist medical
practitioners that have driven growth. Furthermore, revenue growth will outpace employment
growth because of improved efficiency as well as technology at the same time. Regis Healthcare
Limited decision to divest is on tune with the strategy for intensifying focus on hospitals as well
as diagnostics business in Australia. The Australian healthcare sector in Australia had emerged
as one of the largest service sector in Australia. The techniques will be adopted by Regis
Healthcare Limited that will benefit aged care groups by providing better facilities. Regis
Healthcare Limited should follow hub-and-spoke model. In order to face competition, Regis
Healthcare Limited going to be a step further for starting acquiring other hospitals. Regis
Healthcare Limited is engaged n providing the latest in internationally recognized medical care
to patients by providing variety of ailments and medical conditions.

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Question 3
Analyzing the strategic management cycle and the leadership role of professional
accountants in strategic management
Strategic management cycle is one of the comprehensive approaches that leverage the
principles of Hoshin Kanri as well as Blue Ocean Strategy (Lavia López and Hiebl 2014). The
first step in strategic management cycle is current performance assessment. It is important for
Regis Healthcare Limited to measure the current level of performance. The information should
be related to current performance of Regis Healthcare Limited that is readily available from the
annual report. The next step in strategic management cycle is internal environment scanning.
Internal environment plays important role for attainment of future success in healthcare sector in
Australia. Leaders need to undertake internal challenges and aims at understanding changes in
competencies or skills, business models, reason for attrition, associate satisfaction as well as
technological or infrastructure

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Question 4
Defining the role of organization and value chain analysis by applying the analysis to the
design and structure of value by adding activities, value drivers and value chains
Figure: Value Chain Analysis of Regis Healthcare Limited
(Source: Kalkhouran et al. 2015)
The value drivers of Regis Healthcare Limited are to provide quality services or facilities
to the aged population in Australia. The healthcare system in Australia as a whole is in under
pressure (Abdelmoneim Mohamed and Jones 2014). Most of the healthcare professionals as well
as government officials are sharing their view on providing high quality services as well as
healthcare spending is sustainable on the overall economy. The value chain used by Regis
Healthcare Limited actually identifies opportunities that show the ability to compete in the global

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healthcare space by maximizing its potential for exports as well as attracting foreign investment
and talent in the healthcare sector in Australia. The balance of consumers had properly shifted
where the public healthcare look for greater need that necessitates on cost efficient healthcare
delivery by shared responsibility in and across value chain. The healthcare industry in Australia
is hugely affected by the political climate as well as potential regulatory changes as it influences
proper access and affordability of care at Regis Healthcare Limited. Regis Healthcare Limited is
constantly battling to build on healthcare delivery value as well as employment generation and
infrastructure development. Regis Healthcare Limited is finding ways to tackle increasing patient
populations as well as budget constraints and resources shortages (Hopper and Bui 2016). These
activities will give rise to efficiency as it is one of the vital components in hospital management
as well as effective service delivery.
Question 5
Analyzing the characteristics of effective strategic and corporate social responsibility
related performance measurement and control systems
Regis Healthcare Limited had eventually developed new initiatives for reaching out to
communities and contributing towards overall growth of people and economy (Hill, Jones and
Schilling 2014). Strategic related performance measurement of Regis Healthcare Limited
provides healthcare facilities at affordable rates for certain community as well as making quality
of life for upcoming generations. Corporate social responsibility of Regis Healthcare Limited
believes in investing time and money for the betterment of the overall society. Quality of
healthcare in Australia is one of the main encumbrances and ensures through use CSR activities
that makes the difference as a huge scale. Regis Healthcare Limited wants to make healthcare

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services more accessible to the aged groups and reaching out to people and provide them with
best medication. The global healthcare industry is in a state of accelerated evolution because of
market forces as well as changing demographics. It had created disruptions for traditional
healthcare models that help in initiating change in typical value chains at Regis Healthcare
Limited (Armstrong 2014).
Question 6
Describing and applying strategic management accounting techniques to the selection,
planning, implementation, control and monitoring of projects
Strategic management accounting is one of the ongoing process organization that need to
be applied for analyzing the internal processes as well as resources that deliver these healthcare
services (Fullerton, Kennedy and Widener 2014). The techniques used need to be implemented
by Regis Healthcare Limited for executing the necessary strategies for meeting the objectives. In
order to ensure success, the staff members working at Regis Healthcare Limited should
understand their roles as well as responsibilities. The Management of Regis Healthcare Limited
monitors the projects by assessing the level of performance for given period of time. An ageing
population has increased demand for many health services in Australia. Controlling of these
techniques is important where Regis Healthcare Limited offers insightful industry analysis as
well as research into market at the national level. The healthcare systems in Australia are
changing at a rapid pace where the country seeks ways for combating on ageing population as
well as uneven service distribution and efficiency problems at the same time (Drury 2013).

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Reference List
Abdelmoneim Mohamed, A. and Jones, T., 2014. Relationship between strategic management
accounting techniques and profitability–a proposed model. Measuring Business
Excellence, 18(3), pp.1-22.
Armstrong, P., 2014. Limits and possibilities for HRM in an age of management
accountancy. New Perspectives On Human Resource Management op. cit. at, pp.154-166.
Drury, C.M., 2013. Management and cost accounting. Springer.
Fullerton, R.R., Kennedy, F.A. and Widener, S.K., 2014. Lean manufacturing and firm
performance: The incremental contribution of lean management accounting practices. Journal of
Operations Management, 32(7), pp.414-428.
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Hopper, T. and Bui, B., 2016. Has management accounting research been critical?. Management
Accounting Research, 31, pp.10-30.
Kalkhouran, A.A.N., Rasid, S.Z.A., Sofian, S. and Nedaei, B.H.N., 2015. A Conceptual
Framework for Assessing the Use of Strategic Management Accounting in Small and Medium
Enterprises. Global Business and Organizational Excellence, 35(1), pp.45-54.
Lavia López, O. and Hiebl, M.R., 2014. Management accounting in small and medium-sized
enterprises: current knowledge and avenues for further research. Journal of Management
Accounting Research, 27(1), pp.81-119.

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Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Regis Aged Care. 2017. Regis Aged Care | The Support You Need | Aged Care in Australia.
[online] Available at: http://www.regis.com.au [Accessed 16 Nov. 2017].