Strategic planning and organisational performance in health delivery service - a case-study of the Trust Hospital

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The Trust Hospital was established to provide quality healthcare to SSNIT employees and their dependants as well as to the community. It has since its establishment encountered various problems. These include low revenue generation, high operating cost and low level of profit performance. As a means of dealing with these problems the hospital, from 1996, started introducing various strategies. These are new services, price discrimination strategy, fast track service, night service charge and short-term investment. Unfortunately these strategies have not been able to halt the low level of profit performance and ensure efficient performance. They have also not been able to generate adequate return on investment. This study was therefore aimed at identifying some of the major problems facing the hospital and also at assessing the impact of the strategies already introduced. It was also to assess the overall strategic direction of the hospital. Based on the assessment, the strengths and weaknesses of the strategies were to be identified, after which a model strategic plan was to be drawn. To meet these research objectives three types of analytical methods namely financial analysis, statistical analysis and environmental scanning were employed. The study revealed among other things that the hospital has no clear or documented strategic direction. Under this circumstance, the hospital cannot assume a proactive posture, which is essentially needed for the organisation’s survival and growth. The study also revealed that although the total revenue generated by the hospital has been increasing since the introduction of strategic planning, the annual average revenues have not changed significantly. This reflects the fact that the revenue units contribute less revenue than before. To resolve these problems and others detected in the course of the study the researcher has proposed a ten — year vision for the hospital and drawn up an action plan to accomplish this goal. The researcher has also offered some recommendations that would help turn around the organisation’s performance.
A Dissertation submitted to the Board of Post Graduate Studies,Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfilment of the requirements for the award of Master of Arts in Industrial Management, 2000