Healthcare reform: Innovative strategies for successfully managing and implementing organizational change

The purpose and scope of this study is to provide innovative change strategies that will assist healthcare organizations with implementing successful change. Also, explore healthcare trends, healthcare innovation, organizational change theory, and innovation theory in an effort to gain a better understanding of how organizations successfully implement organizational change.Healthcare Reform: Innovative Strategies for Successfully Managing and Implementing Organizational Change Lisa M. Pinkney Doctor of Management, UMUC, 2013 U.S. Food and Drug Administration LisaPink07@gmail.com Purpose and Scope of the Research The purpose and scope of this study is to: • provide innovative change strategies that will assist healthcare organizations with implementing successful change. • explore healthcare trends, healthcare innovation, organizational change theory, and innovation theory in an effort to gain a better understanding of how organizations successfully implement organizational change. Management Problem • The United States Healthcare System is in crisis. • Healthcare expenditures in the United States neared $2.6 trillion in 2010, over ten times the $256 billion spent in 1980 (Centers for Medicare and Medicaid Services, 2012). • Present day healthcare costs are escalating, diminishing access to care has left millions of Americans without healthcare, and the quality of care is decreasing. Research Questions 1. What innovative strategies can management in the healthcare organizations use to successfully achieve needed change and reform? 2. What role does being open to innovation play on the successfulness of organizational change initiatives? 3. How can organizations utilize best practices when undergoing change? 4. How does trend analysis benefit an organization when embarking upon organizational change? Significance of this Research for Management The ability of leaders to utilize innovative strategies to manage organizational change is critical to an organizations’ sustainability. The use of innovative change strategies can result in a better functioning healthcare industry. Main Literature Themes and Authors • Theme 1 – Healthcare Trends Authors: International Federation of Healthcare Plans, 2011; Lazarus, 2011; Lazarus & Fell, 2011; Mann & Gotz, 2007 • Theme 2 – Healthcare Innovation Authors: Topol, 2012; Thakur, Hsu, & Fontenot, 2011; Morse, 2010; Omachonu & Einspruch, 2010 Main Literature Themes and Authors • Theme 3 – Organizational Change Theory Authors: Young, 2009; Kotter, 2007, 1996; Mintzberg & Waters, 1985; Kolb, 1984; Deming, 1982; Juran, 1964; Dewey (1896, 1910, 1916); Lewin (1942, 1943/1944, 1946, 1947) • Theme 4 – Innovation Theory Authors: Tidd, Bessant, & Pavitt, 2009; Birkinshaw, Hamel and Mol, 2008; ; Tushman & O’Reilly, 1996; Utterback, 1996; Rogers, 1995, 1983; Damanpour, 1991, 1984; Henderson & Clark, 1990; ; Schroeder, Van de Ven, Scudder, & Polley,1989; Mohr, 1969; Schumpeter, 1950 Key Propositions Distilled from the Literature • Proposition 1: Healthcare trends have had significant influence over the current state of the United States healthcare system. • Proposition 2: The implementation of innovative information technology initiatives into healthcare organizations can positively influence healthcare cost. • Proposition 3: By considering best practices in healthcare innovation, best practices may be generalizable to other organizations. • Proposition 4: Examining organizational change theory may provide leadership with a better understanding of the challenges of achieving success. • Proposition 5: Innovation is an effective mechanism for incorporating organizational change in healthcare reform. Conceptual Framework Thesis statement The thesis statement is: Healthcare organizations within the United States can successfully implement organizational change and positively affect healthcare quality and cost by utilizing innovative change strategies. Research Approach & Formation of Argument • The research approach involved an Evidence Based Research approach consisting of a comprehensive literature review that provided a foundation of knowledge and identified major themes and constructs specific to healthcare trends, healthcare innovation, organizational change theory, and innovation theory. • In order to conceptualize the literature, three lenses for viewing the problem of the United States healthcare system in crisis were employed. The lenses are 1) system lens; 2) practical lens and 3) theoretical lens. • The literature supports the argument that management scholars and practitioners can successfully implement organizational change in healthcare with the use of innovative change strategies. Literature Review Convergence via the Viewing Lenses Findings Finding #1: Healthcare industry trends provide critical information in organizational strategic planning and continual improvement. Identifying trends provide a useful way for organizations to see what changes are likely to occur in a firm’s industry in the future within a specific timeframe. Using trend information can assist managers in analyzing the likelihood of the change affecting their company’s competitive position and business prospects. Finding #2: There are an abundant amount of healthcare innovation that has been identified and implemented successfully. There are many healthcare innovations including: checklist; behavioral economics; payment innovation; evidence-based decision-making; virtual visits; surgical robots; use of best practices and technological advances. The use of information technology innovation in healthcare is aimed at reducing costs, increasing the quality of care, and increasing efficiency and the access to care. Findings Finding #3: Organizational change and innovation can be viewed as a process resulting in successful outcomes if designed, managed, and effectively implemented. Organizational change must consider the change in individual behavior as organizational change occurs. The interrelationship of variables such as action planning, skill development and delivery, incentives, monitoring and control, and implementation success are critical during organizational change. Identification of the type of innovation is critical when exploring innovation as a process with a focus on adoption. Other findings include: Nine Social Dynamics, Healthcare Trends, Healthcare Innovation, Best Practices, Technological Advances, Change Theory, Environmental Change, and Innovation Theory. Implication for Management Practice This study illustrates that: • Organizational change and innovation play a critical role in determining the success of today’s business environment. • There are key healthcare innovations and best practices that may enhance the success of the U.S. healthcare reform. • Exploration of relevant classical and contemporary organizational change and innovation literature demonstrates a systematic and process approach and provides management a better understanding of each construct. Future Research Agendas 1. Expand the exploration of the Nine Social Dynamics in and effort to identify additional key findings that may advance management theory. 2. Conduct a study to measure the efficacy of various innovation change theories. 3. Research if innovative change strategies can be generalized to other fields of management (i.e. education, social science)