Influence of Financial Planning and Strategic Planning on Health Care Organizations
Influence of Financial Planning and Strategic Planning on Health Care Organizations
The current healthcare environment has grown disruptive. The competition landscape is fast changing as new competitors and methods of service delivery enter the health care market. The health care information systems focus on improving the health cost structures and identifying new health business capacities to align with future changes (Zelman et al., 2009). Such changes in the healthcare landscape threaten to push organizational expenditure higher than the business. The pressure from these changes and future business prospects has driven healthcare organizations to reconsider their business strategies and financial well-being.
In periods of financial pressure and unprecedented health markets, healthcare requires adopting effective strategies to give the organization an edge despite disruptions and competition. Strategic planning in healthcare organizations helps organizations create actionable steps that the organization needs to achieve set goals and align their operations with market trends. Strategic planning in healthcare organizations defines the organization’s niche within an entire health system, giving it a higher competitive advantage against other competitors at the same level within the system. Strategic planning in healthcare organizations enables the organizations to improve their operational culture in response to the market needs, plan and set attainable goals, access current and future risks and develop a future-proof risk management plan, develop an operating budget and future capital planning, and forecast the organization in the long run (Ginter et al., 2018). Therefore, strategic planning enables a health organization to recalibrate its healthcare strategies to meet the current market trends and have a plan for future changes in the health market and patient care.
On the other hand, financial planning is a process of estimating an organization’s capital needs to operate above its competition and framing financial policies to meet such needs. Strategic planning and financial planning in healthcare organizations are interdependent. Combining strategic planning with financial planning influences health organizations’ budget allocations and positions the organizations for long-range financial success.
References
Zelman, W. N., McCue, M. J., Millikan, A. R., & Glick, N. D. (2009). Financial management of health care organizations: an introduction to fundamental tools, concepts, and applications. John Wiley & Sons.
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health care organizations. John Wiley & Sons.
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Question 
Respond to the following in a minimum of 175 words:
Influence of Financial Planning and Strategic Planning on Health Care Organizations
How do financial planning and strategic planning influence healthcare organizations? Provide an example.