Healthcare System Strategic Analysis: Vanguard Healthcare's Future

This report provides a strategic analysis of the Vanguard Healthcare System, examining its organizational structure, financial performance, and operational challenges. The analysis highlights the company's strengths, such as its expansion through acquisitions and financial growth, while also addressing weaknesses like increasing debt, patient satisfaction issues, and workforce concerns. The report assesses Vanguard's organizational readiness and recommends a strategic plan focusing on network growth, resource management, nurse enrollment, and patient satisfaction. Key recommendations include better resource management to reduce debt, rebuilding the organizational culture to value employees, and implementing patient feedback mechanisms to improve service quality. The report emphasizes the importance of strategic planning to ensure Vanguard's ability to meet future healthcare demands and maintain a competitive edge in the healthcare sector.

Running head: HEALTHCARE SYSTEM STRATEGIC ANALYSIS 1
Vanguard Healthcare System
Students name
Institution affiliation

HEALTHCARE SYSTEM STRATEGIC ANALYSIS 2
Vanguard Healthcare System
The capacity of a healthcare firm to cater for the demands of its client in the next one
decade will be based on its administrators in the facility to accurately utilize its resources and
capabilities effectively (Batalden, Batalden, Margolis, Seid, Armstrong, Opipa-Arrigan &
Hartung, 2016). As the demographics of the general populace shifts and the demands of the
patients turn out to be diversified, efficient development to counter the changes will have to be
significant. Based on this foundation of assessment, the present study will provide an appraisal of
the vanguard healthcare systems. Defining the capacity of the organization to cater for the
demands of the clients in the next decade and offer a recommendation for strategic planning in
the sector of nurse enrolment, network development, patient satisfaction as well as the
corporation's resource management (Batalden et al., 2016).
Organization assessment
Past evaluation of Vanguard health system shows that it has made noteworthy evolution
within a short duration of time. The organization was initiated in 1997 by Charles N. Martin,
who is still the chairman and the C.E.O. of the organization. The organization started its
operations by the acquisition of a healthcare center in Arizona, and since then the organization
has expanded with established health centers in Texas, Illinois, Michigan and Massachusetts
(Rao & Pilot, 2014). Also, the firm has two basic healthcare plans and two surgery settings in
California. The company is an investor- possessed healthcare provider and has employed more
than 36,000 staffs in all its branches. Vanguard performs well financially with a total of $8,850
million in the asset as of January 31, 2019 (Moody, 2014). The company has witnessed an
increase in its operating profit in the past three years hence establishing itself as a significant
player in the healthcare sector (Vanguard Healthcare, 2019).

HEALTHCARE SYSTEM STRATEGIC ANALYSIS 3
Even as Vanguard has an established chain of businesses that have seen tremendous
growth, the organization has its strengths and weaknesses. The organization’s success is based
on the fact that Vanguard has been able to influence its management competencies in the
healthcare sector to obtain healthcare systems and hospitals that have similar tactical outlines as
those it has developed since its establishment (Moody, 2014). The organization has made
appropriate purchases mostly in high growth localities which has enabled it to increase its profits
and overall revenues. Even with its present success, Vanguard is faced with various concerns
regarding its financial resource’s utilization. Vanguard reported the total debt of $1,750, $2,787,
and $2,706 in millions from the fiscal year 2011, 2012, and 2013 respectively (Vanguard Health
Systems, 2019). The increase in debt makes it challenging for the company to respond
effectively to the changing market demands hence being faced with daunting challenges in its
operation.
The organization is also faced with patient satisfaction and nursing challenges. In the past
few years, the organization has gained a negative status for having an acrimonious relation with
its staffs. Vanguard nurses in Arizona and Massachusetts in the past have protested being laid off
for raising patient safety concerns to the healthcare managers (Bircher & Kuruvilla, 2014). The
organization has not yet taken adequate measures to ensure that its employees have the resources
and support required to offer high-quality services (Vanguard Health Systems, 2019). Even with
the complains being raised, the organization has not made changes or recommendations to ensure
that they improve patient satisfaction (Simmons, Drake, Gaudet & Snyderman, 2016). The
concerns make it challenging for Vanguard to establish a reputation for high-quality services.
Vanguard has experienced noteworthy short-term successes; however, it is faced with
various challenges that affect its ability to mobilized to remain resolute even in the future. The

HEALTHCARE SYSTEM STRATEGIC ANALYSIS 4
organization's problems, including high debt, meeting the needs of its employees and developing
a good repute of quality services among its consumers (Moody, 2014). Failure of the vanguard
healthcare system to manage the challenges and take part in strategic planning for its future will
have significant implications. Without a proper strategic plan, the capacity of Vanguard's
managers to ensure it meets the healthcare demands of its consumers in the next decade will be
compromised (Moody, 2014).
Strategic Plan Recommendation
Strategic planning is essential as it helps an organization determine the scope and the
direction to use in the long term, matching its resources to its changing environment, mainly its
clients and market (Grant, 2016). According to Porters value chain model, vanguard healthcare
system using the collection of its different operations it carries out can create value for its
consumers (Porter & Magretta, 2014: Dobbs, 2014). Value creation will serve as a competitive
advantage to the organization elevating it from its current competitor hence creating higher
profitability for the corporation.
Vanguards Network Growth and Management of Resources
Presently the company uses a network growth plan where it acquires healthcare
institutions that fits its strategic goals regarding potential growth and location. The plan has
offered the company notable success; however, the increase increased debt is a significant
concern to its success in the future. By using Porters value chain model to link its operations and
systems, and define what impact they have on expenses and profitability vanguard will be able to
determine the best strategic plan (Porter & Magretta, 2014: Hitt, Ireland & Hoskisson, 2014).
The company needs to manage its resources better before venturing into expansion to ensure

HEALTHCARE SYSTEM STRATEGIC ANALYSIS 5
efficiency in its operations. The plan will limit the organization's ability to expand; however, it
will ensure that the present acquisitions are fortified to withstand the changes in the healthcare
sector (Porter & Magretta, 2014). The company can invest in its current facilities to maximize
profitability and reduce its debt.
Workforce
Based on the issues raised by the nurses based on the nursing and care practices carried
out by the organization it is apparent that the Vanguard requires changes to ensure effective
resource management (Porter & Magretta, 2014). The primary recommendation in this regard is
to rebuild vanguards culture to include all its employees as equivalent contributing parties to its
growth and patient care. Vanguard needs to develop a status of offering superior services and
work towards nursing services as its foundation for quality enhancement and patient satisfaction.
Patient Satisfaction
Vanguard is challenged with patient satisfaction issues as it does not consider or use the
feedback of the patients to ensure the improvement of its services. The company should,
therefore, implement effective measures based on the feedback and needs of its customers. The
changes will augment consumer satisfaction (De-Rosis & Barsanti, 2016: Piña et al., 2015). The
plan should also enhance the patient care contributing to the improvement in medical
practitioners’ satisfaction with the corporation.
Conclusion
Vanguard health system managers have majored in the acquisition and integration of
health centers into the vanguard healthcare system. The company has not invested in developing
the activities in the acquired facilities, which necessitates addressing of the issues. Lowering of

HEALTHCARE SYSTEM STRATEGIC ANALYSIS 6
its debt, partnering with its employees and creation of quality programs based on patients’
feedbacks will help the organization improve its services and address significant challenges that
are likely to affect its ability to meet the needs and changes in the healthcare sector in the next
decade.

HEALTHCARE SYSTEM STRATEGIC ANALYSIS 7
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