Diversification Strategy In Health Care

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Strategic alternatives or adaptive strategies are key in business today. Even with all of the best planning, things can go array, organizations can miss targets, and opportunities may be lost, if not acted upon quickly. Ginter, Duncan, and Swayne (2014) note that health care organizations in particular may pursue several strategies either simultaneously or sequentially, in order to utilize their decision logic to the best of their ability (p. 208). There are numerous strategies that show how health care organizations can take their approaches to the next level. In Taiwan for example, hospitals are operating in a very saturated market and have chosen to utilize diversification strategies as a viable alternative in order to be successful. According to Chun-Chang and Feng-Chuan (2005), survival instead of growth has become their operating model (para. 1). Even in Taiwan, simply admitting a substantial amount of people to the hospital does not equate to profit. This practice is not without its’ limitations;…show more content…
226). This reduction of scope strategy has helped the Michigan Health Care Safety Net providers when they were experiencing an increase in uninsured or underinsured patients. The overriding threat to their survival was demand far exceeding their capacity, and their trend of serving a sicker population, coupled with a reduction in public funding, increasing unemployment rates, and the rising costs of services (Jacobson, Dalton, Berson-Grand, and Weisman, 2005, p. 927). Directors felt that in order to continue to provide services, they must alter their strategy by altering their fee schedule, increasing fundraising efforts, recruiting insured patients, and even turning away those looking for free

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