Since the health care environment is constantly changing and transforming, the ability to manage and...

Question

Since the health care environment is constantly changing and transforming, the ability to manage and adapt to change is essential in health care organizations. Change, whether prompted internally or externally or perceived positively or negatively, can be unsettling, making it crucial that health care administrators understand the change process. From implementation planning to effectively communicating with employees and managing conflicts, administrators must be prepared to manage change within their organizations. For this Assignment, you examine an organization undergoing change and develop a change management proposal.

To prepare for this Assignment:

Review this week’s Learning Resources.
Locate and select an organization where change is currently taking place (or is scheduled to take place).
Analyze the organization to develop a change management proposal.

The Assignment

In a 7- to 10-page proposal, address the following:

Describe the specific organization including size, mission, and location. Describe the change that is taking place (or is scheduled to take place) in the organization.
Analyze what is driving the change to take place.
Given the parameters of the change, summarize the resistance or conflict you might expect and why.
Evaluate change management theories and models and select one to apply to the change occurring in the organization. Support why you selected this theory or model.
Apply systems thinking to address the impact of the change throughout the organization.
Recommend strategies and innovations that could be implemented to effect the organizational change and provide rationale for the recommendations.
Explain the role that communication will play in your plan. Analyze how communication could be used to handle concerns and doubts of stakeholders.
Recommend strategies you will use to motivate stakeholders and prepare them to accept, embrace, and sustain the change. Categorize key groups that you anticipate will require targeted motivation strategies.
Recommend training and support required for the successful implementation of the organizational change.
Recommend strategies for sustaining an organizational change.
Explain how stakeholders are involved in and held accountable for the organizational change.
Recommend ways to measure the success of the organizational change and when transformational change has occurred.

Robert · Accepted Answer

Introduction 
Healthcare services are provided in a very dynamic and vibrant system that is generally complex 
and operational model are multilayered. The rapid changes that have been occurring in 
healthcare management through daily processes, functions and activities increases the level of 
complexity that the healthcare system deals with. Compounded effect of the complexity and 
dynamism increases the risk involved in the healthcare system. Healthcare services are going 
through transformation and managing these changes require managers to lay out a clear plan for 
the need and scope of the plan, and also manage the process of transition in an effective manner 
leading to sustainable results. The concept of change means ' a movement from one state of 
being or understanding to another' (Lioyd et al., 2004). According to Lioyd, in healthcare 
organizations there are four levels of drivers of change, namely, 
a) The Individual 
b) The Work Team 
c) The Organization 
d) The environment 
The managers must be able to analyze the effect of change and its implementation must be in an 
effective manner to minimize the risk. There are seven factors that needs to be analyzed 
according to Lioyd “, structure, system, style, staff, skills and shared values and beliefs” (2004). 
For the current project we would be selecting “OPTUM” as a healthcare organization which has 
announced acquisition of Surgical Care Affiliates for $ 3.3 billion. This is the largest deal of the 
first quarter, 2017.
About the Organization- OPTUM 
“Optum is a health services and Innovation company”. The mission statement of the company is 
“To help people live healthier lives and to help make the health system work better for 
everyone.”  
Optum is a part of UnitedHealth Group. The healthcare services provided by the Optum is 
diversified including services to employers, care providers, governments, payers, life sciences 
companies, etc. It serves its customer through three verticals: 
a) OptumHealth 
b) OptumInsight 
c) OptumRx 
These units have specific work segments that are dedicated to improve overall healthcare system 
by optimizing costs, increasing care quality, enhancing consumer experience and managing 
healthcare performance through leveraged capabilities in analytics, pharmacy care services and 
health care operations.  
The market for healthcare services has become very competitive. Some of the major competitors 
of Optum are HMOs, Managed Healthcare Companies, Insurance Companies, Healthcare 
professionals that have formed networks, specialty advantage, population health management 
companies, etc. Companies like Aetna Inc., Anthem, Kaiser Permanente poses tough competition 
in the market place. The competition from new entrant also increases the competitive 
environment. The  competition is on basis of sales, pricing, products and services, customer 
satisfaction, quality of services, network development, efficient distribution system, financial 
dominance and reputation in the market. The failure in any area leads to loss of business and 
eventually market share. It could adversely affect the financial strength and dominant position in 
the marketplace.
Reasons for Organization Changes 
Some of the major driving force for the organizational change at Optum can be related to latest 
developments in business trends, Pricing trends and Medical costs trends. 
Business Trends  
Optum has businesses in United states of America, Brazil and certain other international health 
care markets. If we consider USA, the spending on healthcare has been increasing consistently 
over years. Healthcare in USA contributes to approx 18% of gross domestic products. The 
expectation for future of healthcare system is to increase because of inflation, advancement of 
pharmaceuticals, development of newer technology, regulatory requirements, changing trends in 
demographic and interest of national government in health and well-being of citizens. However, 
the market growth may be hampered by changes in macro-economic scenario of the country of 
operations, regulatory changes etc. 
Pricing Trends 
Price of healthcare products are directly related to the costs involved in the manufacturing and 
overheads.

Since the health care environment is constantly changing and transforming, the ability to manage and adapt to change is essential in health care organizations. Change, whether prompted internally or...

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