896-3535-1-PB

896-3535-1-PB - Journal of Business Case Studies...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Journal of Business Case Studies – September/October 2010 Volume 6, Number 5 23 A Case Study In Strategic Financial Planning In Health Service Organizations Nancy J. Niles, Lander University, USA ABSTRACT Integrating strategic planning and financial planning is the best way for health service organizations (HSOs) to ensure their budget allocations are appropriately targeted to long range solutions. In strategic financial planning, in order to ensure that there is long range financial success, annual budgets need to be analyzed from a long term organizational perspective. This paper will propose a step by step approach to strategic financial planning and their application to the healthcare industry and how the integration of these processes will result in a long term successful framework for achieving the HSO’s mission and vision. Cleveland Clinic will be discussed as an example of an HSO that has successfully utilized strategic financial planning. Keywords: strategic financial planning, health service organizations INTRODUCTION trategic planning is the action plan for running a business over a long term period. This plan is a commitment by senior management to pursue established sets of goals that are developed to promote the company’s vision and mission (Thompson, Strickland & Gamble, 2008). Financial planning is the process of analyzing the financial opportunities of the organization and selecting opportunities that will provide financial success (McLean, 2003). Integrating strategic planning and financial planning is the best way for HSOs to ensure their budget allocations are appropriately targeted to long range solutions. In strategic financial planning, in order to ensure that there is long range financial success, annual budgets need to be analyzed from a long term organizational perspective. Establishing multi year forecasting for the organization provides the financial reality that will support activities that will focus on the mission and vision of the organization. This paper will propose a step by step approach to strategic financial planning and their application to the healthcare industry and how the integration of these processes will result in a long term successful framework for achieving the HSO’s mission and vision. Cleveland Clinic will be discussed as an example of a health service organization that has successfully utilized the steps in strategic financial planning. STRATEGIC PLANNING AND FINANCIAL PLANNING PROCESSES According to Runy (2005), the following are steps in the strategic planning goal process and the financial planning goal process: (a) step one: establish a mission and vision statement of the organization; (b) step two: develop a long term plan that supports the mission and vision of the organization; (c) step three: create plans at each organizational level that integrate the mission and vision; (d) step four: identify and evaluate the organization’s external environment for new opportunities;
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/11/2012 for the course PBC 4674 taught by Professor Ortega during the Spring '12 term at FIU.

Page1 / 8

896-3535-1-PB - Journal of Business Case Studies...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online