MHA FPX 5010 Assessment 1 Current Environmental Analysis

MHA FPX 5010 Assessment 1 Current Environmental Analysis

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MHA FPX 5010 Assessment 1 Current Environmental Analysis

Student Name

Capella University

MHA-FPX 5010 Strategic Health Care Planning

Prof. Name


Current Analysis of the Environment

This article conducts an assessment of a healthcare organization’s directional strategy, examines its external and internal environments, and identifies industry structural features affecting healthcare competition. The selected organization for this evaluation is Grace Medical Center, situated in Baltimore, Maryland, established in 1919 (Cohn, 2019).

Directional Strategies

Directional strategies are crucial for organizational planning as they outline an organization’s identity and aspirations (Singh & Shah, 2018). A hospital’s mission and vision are foundational to its directional strategies, serving as the compass for its purpose and objectives (Savageau, 2014). Grace Medical Center commits to providing exemplary care, a commitment reflected in its mission and vision statements (Cohn, 2019). The organization adheres to the S.P.I.R.I.T values approach, emphasizing Service, Patients, Integrity, Respect, Innovation, and Teamwork (Cohn, 2019). Its strategic trajectory includes innovative service expansion and community partnerships (Savageau, 2014).

External and Internal Environment

Organizations must navigate dynamic environments, staying alert to internal and external factors (Thom, 2013). The internal environment includes cultural, employee, and financial elements (Quain, 2018). Grace Medical Center nurtures a culture aligned with its mission, supported through consistent reinforcement and training (Mannion & Davies, 2018). Nevertheless, challenges like employee retention impact organizational effectiveness (Heath, 2018).

Externally, factors beyond control, such as competition and geographic location, influence operations (Quain, 2018). Safety concerns in Baltimore affect patient decisions, necessitating strategic responses (Fedschun, 2020). Additionally, competition in healthcare, driven by cost, quality, and technological integration, presents ongoing challenges (Pauly, 2019).


Debates about competition in healthcare continue, with significant implications for service quality and accessibility (Goddard, 2015). Increasing pressures drive hospitals to merge or innovate to maintain relevance (Pauly, 2019).


Directional strategies guide healthcare organizations towards operational excellence and growth (Savageau, 2014). Aligning strategies with internal and external environments is crucial for success (Thom, 2013). Thus, proactive identification and management of environmental forces are essential for informed decision-making (Quain, 2018).


Cohn, M. (2019). Bon Secours Hospital in West Baltimore to be renamed Grace Medical Center. The Baltimore Sun.

Fedschun, T. (2020). Baltimore Sees Second Deadliest Year on Record in 2019. Fox News Baltimore.

Goddard, M. (2015). Competition in Healthcare: Good, Bad or Ugly? International Journal of Health Policy and Management, 4(9), 567–569.

Heath, S. (2018). How Nurse Staffing Ratios Impact Patient Safety, Access to Care. Patient Engagement HIT.

MHA FPX 5010 Assessment 1 Current Environmental Analysis

Mannion, R., & Davies, H. (2018). Understanding Organizational Culture for Healthcare Quality Improvement. BMJ Quality & Safety, k4907.

Pauly, M. V. (2019). Giving Competition in Medical Care and Health Insurance a Chance. SSRN Electronic Journal.

Quain, S. (2018). Internal & External Factors That Affect an Organization. Azcentral.

Savageau, B. (2014). Importance of Directional Strategies. Prezi Institute.

Singh, R. & Shah, M. (2018). Directional Strategies and Organizational Performance. ResearchGate.

Thom, K. (2013). The Role of the Healthcare Environment: Challenges and Opportunities. CDC.

MHA FPX 5010 Assessment 1 Current Environmental Analysis

Trish, E., Ginsburg, P., Gascue, L., & Joyce, G. (2017). Physician Reimbursement in Medicare Advantage Compared with Traditional Medicare and Commercial Health Insurance. JAMA, 177(9), 1287–1295.

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