Financial Management Goal Setting
Part 1: Establishing SMART Goals
| Goal Type | SMART Goal | Mission and Vision Alignment | Tracking and Measurement | Resources for Goal |
| Financial or Economic Goal | Increase operating margin by 3 percentage points within 18 months through targeted cost reduction initiatives and revenue cycle improvements. | This goal aligns with mission of enhancing population health by ensuring financial sustainability to continue providing high-quality care. Supports vision of exceptional experiences by reinvesting gains into patient care improvements (American Hospital Association, 2023). | Track operating margin monthly. Milestones include a 1% increase by 6 months, 2% by 12 months, and 3% by 18 months. Success will be measured through audited financial statements showing 3% margin improvement. | Financial analyst to identify cost reduction opportunities. Revenue cycle consultant to optimize billing/collections. Seed funding for process improvement initiatives. |
| Technology Goal | Implement telemedicine capabilities in three key specialties (cardiology, neurology, and oncology) within 12 months to expand access to care. | This goal directly supports the mission of enhancing community health by increasing access to specialty care. It enables exceptional experiences through convenient virtual visits (Teisberg et al., 2020). | Track number of telemedicine-enabled specialties quarterly. Milestones: 1 specialty by 4 months, 2 by 8 months, 3 by 12 months. Measure utilization rates and patient satisfaction scores for telemedicine visits. | Telemedicine platform and equipment.
IT staff for implementation. Provider training on telemedicine best practices. Marketing budget to promote new services |
| Legal or Regulatory Goal | Achieve 90% compliance with new CMS price transparency requirements within 6 months. | This goal supports the mission and vision by fostering trust among community members through transparency. It enables patients to make informed decisions about their care, enhancing their experience. | Monthly audits of price transparency compliance. Milestones: 50% compliance by 2 months, 75% by 4 months, 90% by 6 months. Final measurement through third-party audit verifying 90% compliance. | Compliance officer to oversee the initiative.
Web developer to update the hospital website Staff training on new requirements. |
| Risk- or Quality-Improvement Goal | Improve HCAHPS scores to reach 85th percentile in all categories within 24 months. | This goal directly aligns with vision of delivering exceptional experiences. It supports the mission by improving patient satisfaction, leading to better health outcomes (Centers for Medicare & Medicaid Services, 2024). | Track HCAHPS scores quarterly. Milestones: 50th percentile by 8 months, 70th by 16 months, 85th by 24 months. Success measured by reaching 85th percentile across all HCAHPS categories. | Patient experience consultant. Staff training on service excellence. Technology for real-time patient feedback. Budget for environment improvements based on feedback. |
Part 2: Evaluation of Financial or Economic Issues on Health Care
The healthcare sector faces numerous financial and economic challenges that significantly impact operations and patient care. Rising costs of care, driven by factors such as expensive medical technologies, pharmaceuticals, and an aging population, continue to strain healthcare systems. Simultaneously, the industry is undergoing a paradigm shift from fee-for-service to value-based care models, necessitating substantial changes in care delivery and financial management (Khullar et al., 2020).
These are uncompensated care issues that many hospitals need to grapple with, particularly those in areas marked by high populations of the uninsured. These, coupled with wafer-thin operating margins, leave many institutions ill-equipped to invest in areas of vital interest, such as new technologies, facility enhancements, or the development of human resources. The financial squeeze is heightened by the expenses linked to compliance with regulations and the unending upgrading of IT systems for security and efficiency reasons (American Hospital Association, 2023).
As depicted in this financial landscape, Stevens District Hospital has both opportunities and challenges in this SWOT analysis. Strong points such as quality management and Joint Commission accreditation provide an excellent platform for the hospital to thrive in a value-based care model. Weaknesses include physician recruitment and market share loss, with Stevens District Hospital needing to make strategic investments to stay competitive in the challenging market.
The Stevens District Hospital’s goals are set to directly affect these challenges financially. While the improvement of operating margin as a financial goal installs stability that enables reinvestment in the quality of care and technology, the technology goal of implementing telemedicine expands market share, and thus, new streams can probably take the place of lost revenues in traditional service lines (Teisberg et al., 2020).
Further, the regulatory goal of compliance with price transparency can help in engendering trust with patients and payers and consequently reduce bad debt and positively impact collections. The quality improvement goal of improving HCAHPS scores is aligned with the value-based payment models for probable improvement in reimbursement rates (Centers for Medicare & Medicaid Services, 2024).
By focusing on these strategic goals, Stevens District Hospital will be much better equipped to deal with the challenges that have come to envelop not just modern healthcare but most healthcare-related activities in general. This focused strategy will enhance the financial position of the hospital, as well as its continued capacity for the delivery of quality care to the community. In balancing financial sustainability with effective service delivery, this paper positions the hospital for long-term success and resilience in an ever-evolving healthcare environment.
References
American Hospital Association. (2023). 2023 environmental scan. https://www.aha.org/environmentalscan/2023
Centers for Medicare & Medicaid Services. (2024). Hospital compare. https://www.medicare.gov/care-compare/
Khullar, D., Bond, A. M., & Schpero, W. L. (2020). COVID-19 and the financial health of US hospitals. JAMA, 323(21), 2127-2128. https://pubmed.ncbi.nlm.nih.gov/32364565/
Teisberg, E., Wallace, S., & O’Hara, S. (2020). Defining and implementing value-based health care. Academic Medicine, 95(5), 682–685. https://doi.org/10.1097/acm.0000000000003122
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Question 
As a healthcare manager participating in the reinvention task force, you need to formulate your strategy after completing your organization’s SWOT analysis. Setting strategic goals establishes how your organization will align plans with the performance expectations to gain competitive advantage in the health care industry. You will demonstrate skill in financial management when you evaluate financial and economic issues affecting a health care organization.
Financial Management Goal Setting
Assessment Deliverable
Incorporate analysis based on your review of the data provided in the Stevens District Hospital Strategic-Planning Scenario and your Wk 3 Summative Assessment: SWOT Analysis Retreat Preparation. You will be using your mission and vision established in week 2.
Complete the Goals and Issues Worksheet.
Cite at least 3 peer-reviewed, scholarly, or similar references to support your assignment.
Format your analysis, citations, and references according to APA guidelines.