Swot Analysis Of Coastal Medical Center

Running head: HEALTHCARE STRATEGIC DEVELOPMENT
SWOT ANALYSIS OF COASTAL MEDICAL CENTER
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1SWOT ANALYSIS OF COASTAL MEDICAL CENTER
Introduction
According to Kim, Gaukler, & Lee (2016), healthcare organization or hospital are
evolving constantly and it is necessary for every hospital to formulate continual strategic
planning to provide effective service towards the patients and community. SWOT analysis is
an effective tool for building strategic planning in the hospital (Gürel, & Tat, 2017). Coastal
medical center need to formulate strategic planning and with the help of SWOT analysis, the
internal and external factors would be analyzed. This paper intend to examine the SWOT
analysis of the Coastal medical center.
Internal Analysis
Coastal medical center (CMC) is 450-bed regional hospital that provide multiple
ranges of services within the hospital. This hospital provide services in the coastal city
including three countries. The healthcare costs are higher in the region and therefore, many
businesses forming a coalition for hiring full time employees and to achieve the reduction in
the cost of healthcare. The CMC offers highest cost in the state, however CMC also have two
exceptional university affiliated teaching medical center. The admission are down by 14
percent, surgical admission are also down by 6.7 percent and ambulatory care visits are also
low by 10 percent. However, the Medicaid admissions has increased by 11 percent. CMC
also has also advantage in the market of substance abuse, psychiatrics, obstetrics and
pediatrics. Apart from this, they also dominate market in delivering of medical along with
surgical care. The corporate staffs in the CMC are in multiple offices that includes office of
the CEO, office of senior vice president for finance, marketing, strategic planning, medical
staffs, legal affairs and corporate development. The value of the CMC are identified in the
area of patient satisfaction, health outcomes, and readmission rates for heart attack, patient

2SWOT ANALYSIS OF COASTAL MEDICAL CENTER
satisfaction and heart failure. The value of CMC has also increased in the pulmonary disease
care, chronic pulmonary disease, hip or knee surgery and many other.
External Analysis
CMC being located in tricountry area and all the three countries is facing fastest
growing population from the past few years. Therefore, the patient demographic is also
growing and demographic is increasing from 1 to 2 percentage. The people under the age 44
represents the youth and continuously growing community. The per capita income of the
individuals of these countries are higher as well as continuously increasing. The economy of
these areas are highly supported by the supported by the manufacturing units, service
companies along with the agricultural sector. The major competitor of CMC are Johnson
medical center (JMC) and Lutheran medical center (LMC). The facilities of JMC are also in
tricounty and within the 30 minute drive from the main CMC facility. JMC has total revenue
of 40 percent and is growing till 6 percent from the last two years. On the other hand, LMC
provides better deals in providing indigent care. It is 310-bed acute hospital. The hospital is
located outside the city limits however, within the tricountry area.
Major Issues
There was a conflict within CMC, the parent board has refused the appointed new
CEO of the hospital. Also, there was an incident of appointing two consultant for the
formulation of strategic planning and however, never implemented. Another major issues are
hostile competition with JMC and LMC. The major problem was rise in the healthcare cost in
the region. The increased in cost resulted in the lower rate of admission and also impacted on
the surgical admission. Another issue was lower ambulatory care visits in the CMC. The
major problem found by the chief financial officer was presence of three unions. There was

3SWOT ANALYSIS OF COASTAL MEDICAL CENTER
excessive cost in the labor, purchased services and material. Therefore, the three unions that
are excessive cost, unionized nursing services and unionized employees in support system.
Virtuous Business Concept
The Virtuous business concept applied in the CMC was construction of the hospital-
owned medical offices building. The building was constructed within the 5 km of the
hospital. This approach has resulted in the growth of the orthopedic physicians and ultimately
the CMC is exploring the financial feasibility and found opportunity in opening a physical
therapy at the new location.
SWOT Matrix
STRENGTHS
 Largest acquisition of the
market in multiple dimensions
 Acquiring larger demographic
area that is tricountry area.
 Higher Medicaid admission
 Strong corporate employees or
staffs
 Efficient university affiliated
teaching center
 Higher quality of care and
value towards patients.
WEAKNESSES
 Poor admission rate
 Lower rate of ambulatory
service visitors
 Increasing healthcare cost
 Conflicts among the senior
management of the CMC.
OPPORTUNITIES
 Stable economy and higher
per capita income of the
individual
 Increase in the number of
population would create an
opportunity to increase the
services.
 Opportunity for opening
physical therapy.
THREATS
 Hostile competition with
LMC and JMC.
 Higher Achievement of the
competitor
 Political regulation or
implementation of new
policies or regulations.

4SWOT ANALYSIS OF COASTAL MEDICAL CENTER
References
Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Kim, R. H., Gaukler, G. M., & Lee, C. W. (2016). Improving healthcare quality: A
technological and managerial innovation perspective. Technological Forecasting and
Social Change, 113, 373-378.