SWOT Analysis: Middle County Medical

SWOT Analysis: Middle County Medical PC (MPMPC)

SWOT analysis is a basic analytical tool in management that has become popular in recent years. SWOT analysis is often used by strategic planners and top management in developing competitive strategies. It is typically used to decide corporate strategies and to make product or market level analyses. Though the analyses seem to identify only broad trends, SWOT analysis as a technique has the capacity to analyze information in depth depending on the objectives of the users. Thus, by a comparison of strengths and weaknesses and opportunities and threats with those of the competitors, effective strategies and tactics can be developed to combat competition. Strengths and weaknesses are internal factors of a firm, in contrast with the opportunities and threats, which are external factors. For the Middle County Medical PC (MPMPC), the following SWOT analysis was comprised:

Strengths

A 35 physician group practice

In existence since 1984

Long history of profitability until recently

Staff members are, overall, caring responsive and accommodating

Clinical services are of a high quality with low mortality rates

Positive outlook and strong resolve to improve further on performance

Weaknesses

Operating losses in 2009 and projected losses in 2010

Dr. Balko's limited leadership skills

Dr. Balko's aversion to the administrative responsibilities of his position (there is no chief administrative officer)

Low staff morale based on Dr. Balko's waning enthusiasm and fears that he may sell the business.

Lack of decision-making authority for CFO, HR Director, IT Director/Recruitment Director or Director of Operations

The Director of Operations has questionable decision-making capabilities and tends to "screen Dr. Balko from issues that need to be resolved"

Laid back atmosphere such as a lack of uniforms (providers working in jeans and sports shirts) and the uncleanliness of the office has created an image of unprofessionalism in the community

Lacks the specialists and subspecialists to compete directly with Innovative Medicals broad range of services

Dr. Balko is mired in backward and unrealistic thinking about the true situation that MPMPC is facing

Opportunities

Increasing diversity of the county has created many unique market niches

Population of the county has increased, especially in two major markets: children and seniors.

The pending closure of the Darien Hill Hospital Division of County Regional Medical Center (CRMC) creates an opportunity for MPMPC in the southeast section of the county.

Limited venture with Good Sisters Health System (although this is questionable and tentative)

Disgruntled Innovative medical patients who feel that they have been treated like a number can be enticed by the warmth of the MPMPC staff.

Affiliations with specialists and subspecialists in other counties

Aggressive pursuit of affiliations with outside hospitals such as Riverside Health and Medical Center to create opportunities for market penetration and for capturing a unique market niche (Riverside is the only hospital in the area to perform bloodless surgery which would help them to capture the growing Jehovah's Witness market)

A focus on value-based competition

Threats

50% of patients leave their home county for medical care in the urban center

Innovative Medical is the biggest competitor -- it is affiliated with the major county hospital (CRMC) and its strategic market has resulted in the lion's share of the market.

The construction of a new CRMC facility in Middletown is underway

The consolidation of the acute care segment is part of a trend toward consolidation that is making competition for MPMPC increasingly difficult.

Other health care providers are vying for the southeastern market that will soon be opened up by the closing of the Darien Hill Hospital Division of CRMC.