Investing your money: the long and the short of it

Because of rapid changes in the stock market and the health care environment, boards must rethink their short- and long-term investment strategies. Experts offer practical advice about how to restructure your investments for the new economy.

Managing stakeholder loyalty

The authors question the utility of relying on the conventional wisdom in healthcare that satisfaction is the proper measure of strategic health. They offer four reasons why "stakeholder value" is the more appropriate measure. They present a case of a large midwestern HMO that has evolved to a stakeholder value approach. They demonstrate the linkages among the different components of the Stakeholder Value Information System, how stakeholder assessments of value drive loyalty and other key measures, and how that system can be used to inform strategic and operational decision making.

The value marketing chain in health care

In health care, Michael Porter's value chain can be reconceptualized as a "Value Marketing Chain," in which value is reinforced during each step of the customer recruitment and retention process. "Value" is a concept that must jointly be defined by buyer and seller as they interact every step of the way during the process. This requires the establishment of end-to-end mechanisms for soliciting feedback from customers.

Applying risk management strategies to strengthen an IDS's investment policy

The increased financial risk that not-for-profit integrated delivery systems have assumed to function under managed care has required them to become increasingly reliant on income and gains from their investment portfolios. This reliance underscores the need for these organizations to take steps to effectively manage their investment risk. Not-for-profit IDSs should establish a systematic approach to investment risk management that is based on maintaining a sound fiduciary infrastructure and having a clear understanding of risk exposures, the most important of which are policy and market risk. Applying reasonable and common-sense risk management strategies to investment policy will enhance an IDS's overall financial and competitive strength.

A quantitative rationale for investing in healthcare facilities

When considering investing in its facilities, a healthcare organization should determine its competitive position by quantifying factors such as average age of plant, inpatient days, occupancy rates, and inpatient versus outpatient revenue. Average age of plant in years (AAP) can be compared with inpatient days per 1,000 population to determine an organization's AAP relative to the market and thus whether investment is warranted. Occupancy rates per facility can be compared to the total of all unoccupied beds in an organization to determine if some facilities should be consolidated or closed. Understanding the relationship between revenue trends and the number of projects undertaken to address shifts in inpatient and outpatient volumes can help providers create the optimal environment for patient care delivery.

The art of defining computer system requirements: say what you need and need what you say

The task of defining computer system requirements often involves the consideration of an overwhelming number of complexly related factors. Therefore, before getting started, a project team assigned this task needs to get an overview and develop a clear understanding of the main objectives and the alternative methods it can use in carrying out its responsibilities. This article presents tips and techniques for achieving success in the requirements definition phase of a software selection process.