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Strategic alliance with other organization is a commonly used strategy in today’s
healthcare environment. Assume that you were the administrator at ABC hospital
that will sign a contract with XYZ hospital to form strategic alliance. The physician
leader at your hospital disproves this deal and tells you that he will resign once the
contract becomes effective. How will you respond to the physician leader?
Strategic alliance is a variety of interorganizational relationships furthering the goals of
the organizations involved (Leatt & Barnsley, 1994). Strategic alliances can control
costs, increase accessibility and quality of care, increase ability to acquire personnel and
funding, and increase influence in the healthcare system (Leatt & Barnsley, 1994).
Substantial independence is still kept in these alliances (Leatt & Barnsley, 1994). It is
important for physicians to be involved in the strategic planning and program priorities
(Leatt & Barnsley, 1994). The administrator needs the clinical expertise to understand
implications of these alliances (Leatt & Barnsley, 1994). It is the responsibility of the
physicians to facilitate the coordination of care and integration of programs to maintain
quality with contained costs (Leatt & Barnsley, 1994).
As administrator of the hospital, I would ask to meet with the physician before signing
the contract. I would ask him to get involved with the strategic planning team. He can
provide feedback to why he feels this alliance would not be a good one for the hospital.
He may suggest other alliances that would fit with the hospital better. Physicians are an
asset to keeping the hospital grounded on quality while constraining the costs.

Leatt, P. & Barnsley, J. (1994). Physicians in healthcare management: 9. Strategic
        alliances and relationships between organizations. Canadian Medical
        Association Journal, 151 (6), 763-767. Retrieved from
        http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1337131/

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Week 6 discussion 2

  • 1. Strategic alliance with other organization is a commonly used strategy in today’s healthcare environment. Assume that you were the administrator at ABC hospital that will sign a contract with XYZ hospital to form strategic alliance. The physician leader at your hospital disproves this deal and tells you that he will resign once the contract becomes effective. How will you respond to the physician leader? Strategic alliance is a variety of interorganizational relationships furthering the goals of the organizations involved (Leatt & Barnsley, 1994). Strategic alliances can control costs, increase accessibility and quality of care, increase ability to acquire personnel and funding, and increase influence in the healthcare system (Leatt & Barnsley, 1994). Substantial independence is still kept in these alliances (Leatt & Barnsley, 1994). It is important for physicians to be involved in the strategic planning and program priorities (Leatt & Barnsley, 1994). The administrator needs the clinical expertise to understand implications of these alliances (Leatt & Barnsley, 1994). It is the responsibility of the physicians to facilitate the coordination of care and integration of programs to maintain quality with contained costs (Leatt & Barnsley, 1994). As administrator of the hospital, I would ask to meet with the physician before signing the contract. I would ask him to get involved with the strategic planning team. He can provide feedback to why he feels this alliance would not be a good one for the hospital. He may suggest other alliances that would fit with the hospital better. Physicians are an asset to keeping the hospital grounded on quality while constraining the costs. Leatt, P. & Barnsley, J. (1994). Physicians in healthcare management: 9. Strategic alliances and relationships between organizations. Canadian Medical Association Journal, 151 (6), 763-767. Retrieved from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1337131/