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Governance Challenges at Good Hands Health Care


It is important to note that there have been a lot of dissatisfaction in the current US healthcare system. The rising and expensive costs that accompany the industry is really straining the American residents.

The US government has been financing Medicare and the Medicaid. The funding procedure though has not be effectively done, thus hindering smooth operations of the facility.

Good Hands Healthcare was initially established as a small nursing home, but it has expanded its operations to include care facilities. It also provides pharmacy and medical supplies to the residents. Its culture has been to emphasize people living together as a family.

This paper seeks to analyze the strategic management for healthcare organization.

Global issues in the US healthcare

There has been a tremendous increase in competition within the US healthcare sector. The competition has been brought about by the increasing number of healthcare providers who are competing for the limited US population, for instance, the emergence of HealthUS, Aged services and the Eldercare institutions which are the major competitors of the Good Hands. Competitions among the service providers offers choice to the public on where to access the services when need arises.

The public is greatly concerned with the institution management since it ensures smooth flow of operations and service delivery within it. The management also has a significant impact on the quality and efficiency of the services provided within its jurisdiction. The institution therefore ought to exhibit good management team in order to win more clients and profits in its operations. Quality management will also increase people’s trust on the institution’s personnel.

Cultural and legal challenge has greatly affected global companies as they endure to improve global security across nations. There have been significant regulation conflicts between countries, something which affects the operations of these global companies. For instance the European Union privacy regulation conflicts with the US laws. The legal and regulatory requirements data reach report by the state has been used by the criminal organizations to attain some abnormal gains and profits.

The fourth and fifth millennium development goals were to reduce child mortality and improve maternal heath. The two goals were all directed towards the improvement of healthcare across the world. They added more pressure to the respective governments including the US government; consequently a significant improvement was felt in the healthcare sector.

More advanced technologies have been adopted in healthcare research programs. This has not only led to quality but also efficiency in the health industry. The research program has also led to innovation and invention of drugs and other healthcare products which all add up to health improvement.

Since many countries emphasize on free trade and the removal of trade barriers between nations, many foreign companies have opted to enter the industry. The move have therefore resulted to the domination of foreign companies in the US economy.

One may think that there is no connection between industrialization and healthcare industry, but this is not so. The major economical gain all over the world come as a result of country move towards industrialization. Industrialization therefore generates and improves the individual income which is later spent through payment of healthcare bills. More developed countries like the US can therefore sustain high medical and healthcare costs compared to a less developed nation.

The overall economic downturn in the world heavily impacted on the US healthcare system as most of them experienced losses in their operations. Considering that the effect was globally felt many healthcare institutions barely lacked finances to meet their regular expenses.

National issues in the US healthcare

Healthcare sector has been accused of misappropriating its funds, which has consequently impacted negatively to the services offered. The managerial deterioration has also led to loss of institution’s faith and trust by the public.

Quit a good number of the US companies and institutions has been faced by some financial constraints which have eventually led to others been declared bankrupt. This point is reached whenever the institution fails to meet its daily expenses.

There have been a significant drop of the number of people who seeks services from the nursing homes. The reductions has impacted on the financial status of many institutions which provided that service.

The state’s licensing authority have stipulated the rules and regulations which must be adhered to before an institution is allowed to operate.

The government has reduced its funding to Medicare and as a result this has negatively impacted on the quality of services offered. Some of this institutions have had some economic and financial difficulties due to the government decision to reduce the funding.

The reform allowed Medicaid to continue providing services to the public; this was arrived at after the increase in cost of services.

The overall dependency of the sector to the government funding has impacted negatively to the sector financial capacity. The funding delays and reduction has made it practically impossible to run this institutions.

There is a considerable increase in professional liability in the US. This liabilities had negative effects since it was followed by an increase in lawsuits against the industry. For instant seven out of ten facilities in Florida had an open claim against the industry.

Considering the high demand for nursing services, the industry has a deficiency, since the number of nurses versus the population is low. There is a need therefore to boost the training institutions in order to raise this number to a considerable level.

There have been a considerable increase in healthcare costs to an extent that the US residents have lost hope of accessing the facilities. Considering the economic hardships that are prevailing, the increased costs continues to increase the burden of the American residents.

Future healthcare issues

The continued support to put healthcare management and funding under the federal government will seek the establishment of universal healthcare. Under this system all the American residents will freely access healthcare facilities regardless of their economic capabilities.

A considerable increase in the quality and efficiency of healthcare services will go up since the performance contracts will be used to evaluate the personnel’s efficiency. If one will not keep up the pace then his or her services will be terminated.

The governments of the various nations will increase the amount allocated to the healthcare sector. This is because by so doing the overall economy of the state will raise as people will be able to work without health problems.

The industry will seek to maximize equipments use and also minimize the waste generated. By so doing the industry will raise its productivity and consequently its revenue.

There is an increased call for transparency in healthcare sector. This will contribute to a significant reduction in the pricing of the services provided in those facilities. The transparency will also increase the institution trust by the patients. The hospital administrators will effectively manage the institution leading to more profitability.

There will be a renewed attention to the supply chains which will be aimed at improving the service level and also reducing the costs. The move will also aim at improving the quality of goods supplied into this healthcare facilities.

There is a great potential in the insurance industry as people acknowledge the needs to have medical policies. The covers will assist the residents to meet healthcare costs which are increasing day-by-day.

In the near future healthcare facilities will be independent, a move which will enable them to operate efficiently and effectively. Self reliance will also lead to quality service delivery as timely response will be taken.

The near future will be characterized by an increased number of healthcare personnel. The number will rise due to the increasing demand of such professionals in the market. Consequently, the high number will bring about efficiency in the medical and healthcare field, which is quit essential to the market.

The future will embrace new developments in the management process, which will oversee the smooth running of healthcare institutions. Perfect measures will have been put place to regulate and ensure proper management. Rewards system will also be put in place to ensure the best performers are acknowledged and recognized.

Key sectors & healthcare organization in the US

The pharmaceutical industry is mostly concerned in the manufacturing of healthcare products such as the wheelchairs. They also provide services like therapies which improve the US healthcare program.

It is expected that there will be an increased policy subscription in the insurance sector in the near future. This is because people have continued to learn more of the importance of having a cover. The covers also relieves the client financial constraints which would otherwise be felt.

With the growing road safety awareness, there will be significant reduction in the number of the disabled and incapacitated patients. As a result of this reduction, healthcare institutions will only be left with the natural cause i.e. age to deal with.

The increased economic growth in the world will also have a positive impact on the US healthcare program. This is because people will have enough to pay for their medical and healthcare bills.

The improvements of the world health organization will have a positive impact on the US healthcare program. This is because new internationally recognized regulations will be established in order to govern healthcare sector.

The political reforms will also acknowledge the importance of healthcare in the region. The politicians will therefore seek to amend the constitution in order to accommodate the demands of the people. Universal healthcare program which must be supported by the constitution will be passed in order to cater for earlier deficiencies.

Well established infrastructure will be laid down in order to provide online health and fitness services. The establishment will assist in reducing the number of people who regularly visit healthcare institutions.

There will be a remarkable increase in healthcare consulting firms, which will aim at providing strategic and operational guidance to the American citizens. The firms will also greatly improve healthcare services in the states.

The technological advancement in the world will also significantly effect healthcare activities in the US. This is because more advanced machines and other medical gargets will be required to facilitate their operations. Improved technology will also reduce healthcare procedures which would otherwise be time consuming.

Jackson’s assessment

Good Hands’ problems are a result of poor industry or external conditions, for instance the harsh regulatory climate that the industry find itself in has greatly contributed to the Good Hands down fall. This is because the regulations restricts the operation of the facility which consequently limits its profitability.

The increased lawsuits which have currently be observed in the health industry has also led to loss of huge sum of money to the plaintiffs. The industry has therefore lost a significant portion of its operations amount due to this.

The reduction of the federal government funding has also greatly impacted on Good Hands activities. This is because it incapacitates it financially making it hard for it to perform as expected.

It is also important to acknowledge the presence of competition in the industry. This is because the newly emerging healthcare organization has also impacted on the Good Hands market.

The prevailing economic recession that faced the world market in the resent years has greatly affected all sectors in the market, healthcare being among them. The financial hardships and constraints has left quit a good number of organizations bankrupt.

Strategic, leadership and governance issues

It is important to note that Jackson has been the Good Hands CEO for over 30 years now. The lengthy term has greatly led to loss of focus as the leader assumes that things will just work out as they always do. But it appears that a change has caught up with him since the performance of the facility has been falling day-by-day. Other senior officers have also served in their capacity for quit sometime now, a move which does not commensurate well with their performances (Hillman & Seymann, 2009, p.5).

The majority of the Good Hands employees do not possess any professional skills in healthcare. This therefore lowers professionalism level in the facility.

Due to the nature of employment terms, which is casual there is a considerably high turn over rate in the facility. The turnover level has therefore affected the performance of the facility. The management should therefore work towards reducing this rate so as to maintain stability.

The management team has also shown a relaxed trend when performing their duties. The laxity therefore has greatly affected the productivity level of the facility. Strict measures should be put across in order to ensure effective and efficient management in the facility.

In the resent periods facility sales has been on the decline. This has therefore impacted much on the income level of the facility. The lower revenue levels also influence the operation capacity of the organization. This drop in sales has been felt in the last three years and the reason might be due to the effective marketing by the competitors.

The fund managers have also failed on their side, since the facility experiences poor accounting program. The system used in the facility also does not caution against losses and other loss of funds.

There have been a significant increase in the general and professional liabilities. The liabilities have negatively impacted on the facility financial systems as a lot of money are being lost to the payments of claims. The liabilities therefore needs to be lowered in order to ensure that the facility retains this huge sum of money for other development purposes. The facility should also purpose to exhibit professionalism in their duty performances in order to lower such liabilities.

The Chief financial officer is said to lack personality that make up a leader. This lack of leadership trait has therefore greatly impacted on the facility management, as the CFO cannot coordinate well with other staff in the facility. The CFO should therefore be replaced with another effective leader who can portray and exhibit effective leadership in the facility (Hillman & Seymann, 2009p.6).

There seems to be a communication failure among the board members. This failure has therefore greatly affected cooperation and coordination amongst the board members. As a result, division in the team has been observed which consequently blocks the facility performance.

Most of the facility high ranking officials have been close allies of the CEO Jackson. This has therefore made them indispensable such that no one can question their actions. The team has therefore been very reluctant in executing their duties and obligations (Hillman & Seymann, 2009p.8).

Due diligence has also been lacking in the facility management. The main reason for this might be because no one can act against this ineffective senior officials as the CEO will decide on their favor. The team has therefore taken an advantage of their friendship with the CEO to exploit the facility resources (Hillman & Seymann, 2009p.6).

There is a close personal ties to all the senior officials of the facility. The ties link them to the facility CEO. Most of them were his friends, lecturer and school mates. The ties limit the level of professionalism when it comes to duty executions.

The management under the leadership of Jackson as the facility CEO lacked a good recruitment body. The body inefficiency has a great influence to the people recruited into the facility. Despite their experiences and competencies, the body should also cross examine the personal ties between the applicants and the board members.

The facility should design a proper succession plan, which should stipulate the tenure of office. This is because the productivity tends to fall as people possess similar position and office for a lengthy period of time.

Proposal regarding Jackson:

  • Resignation.
  • Appoint new senior management.
  • Performance contracts.
  • accountability.

It is quit significant and honorable to let Jackson step down as the facility CEO. It is therefore not advisable to move him to another chair as he has served for a considerable period in the facility. This is because having occupied the same position for such a long period of time proves to be ineffective. The facility requires a change which can only be obtained through an overall leadership changes.

There should be an overall appointment in the facility senior management body. This is because the current body has failed and led to the facility performance decline. The newly appointed body will put in new blood to the facility which will help it keep up to the market competition.

Performance contracts should be signed by the newly appointed facility officials. This will propel them to work hard and ensure the success of the facility. Incase they fail to deliver then the facility will not have any other alternative other than to dismiss them.

All senior management personnel should be help accountable and liable for the mistakes done in his or her area. The accountability will assist the officials to be more cautious when executing their duties. The facility will also be able to recover some of the damages cause by negligence of such leaders.

Reflection to the current US healthcare

The Us healthcare has been characterized by lot of greedy investors who are out to exploit the American people. They have therefore continually increased the price of accession healthcare services to a level which is not appropriate to the low income earners.

The US government through healthcare regulation bodies has put in place checks and controls which restrict healthcare performances. The regulations though intended to be for the benefit of the general public sometimes narrows the financial channels in the sector. It therefore translates to revenue limitations which have a major impact on healthcare sector.

The US healthcare services have off late been characterized by increased costs which have forced the residents to used parts of their savings for medical. The increased costs are due to the privatization of the healthcare facilities. Since the private sector are out to maximize their output, there have been very little concern for the public. The costs increase though does not commensurate with the quality of service provided. The research undertaken in 2001 indicated that many regions are still ragging below the average standards (Kovner, Knickman & Jonas, 2008, P. 24).

The healthcare sector has generally been characterized by much competition in the current period. Many private firms has entered the industry with an aim of maximizing its profits just as the existing firms. The rivalry between firms has therefore caused some unfair marketing techniques such as image damaging.

Healthcare management body has not performed to its expectations. This is because most healthcare organizations and institutions have had some financial difficulties in the resent period. The difficulties are due to lack of proper financial forecasting.

It is amazing to note that the facilities which charges relatively higher amount of money to the residents does not hold for a longer period. It is therefore necessary to relate quality service delivery in order to equate the charges (Kovner., Knickman.,& Jonas, 2008 P.24).

Oral healthcare has affected the lives of many young American residents. It is estimated that one fourth of the US population above the age of 60 years have lost their natural teeth. Researchers have also recognized that mouth is the entry of all other infections in the body. Diseases such as diabetes is as a result of what enters through the mouth (Kovner., Knickman.,& Jonas, 2008 P.26).

The world health organization reported that 15% of diseases in the developed nations like the US are caused by mental illness. There is therefore a need to design ways in which mental illness should be prevented.

Many American residents seems to be dissatisfied with the current healthcare system in the US. Healthcare policies in the US differs with other countries since in other countries there is a universal healthcare. Universal healhcare is provided by the government to ensure all the residents gain access to free medical and healthcare services (Kovner., Knickman.,& Jonas, 2008 P.32).

The US healthcare facility has undertaken quantitative data program which aims at measuring the performance efficiency. As a result National Committee for Quality Assurance has been established to regulate healthcare industry.

The US healthcare industry has been greatly affected by the nutritional behavior of the American residents. Poor nutrition have resulted to health problems among the young and old residents. People should therefore be trained and educated on how to improve their nutrition status. This is because it will positively impact on the overall health status of the US residents.

It is important for that the American citizens sign up for the insurance covers. This is because the covers will share the risks of event uncertainties. This is more so considering the expensive costs related to healthcare services (Kovner., Knickman.,& Jonas, 2008 P.67).


For a nation to develop, the health of the residents should be prioritized. This is because healthy individuals will be able to work efficiently for long hours.

The government should understand that not all residents can afford the rising healthcare costs. As a result immediate intervention is necessary in order to cater for the low earners who can barely afford quality medical expenses. The intervention can be done through government subsidies.

The government should offer universal healthcare in order to ensure quality and equitable health services to all residents. The move will greatly impact health status of the American people.

The government should also ensure that the institutions are sufficiently funded. The funding will enhance smooth flow of operations which consequently improve the service quality.

The officials appointed to manage healthcare organizations ought to be responsible. They are also supposed to be held accountable for their failures.

There should be no favoritism within the facility management. This is because such behaviors end up negatively impacting the overall managerial system. It also leads to inefficiency and losses.

The government should not issue license and relax just because the firm is paying taxes. Follow ups and checks should be done regularly in order to ensure quality healthcare services are provided in those firms.

It is important to diversify the financial channels. This is because by doing so the facility will reduce the dependency ratio, which will positively impact on the overall industry performance.

A proper and well laid out succession plan should be established in order to ensure continued productivity. The maximum number of years which a senior official can maintain his tenure should be stipulated clearly in the facility memorandum.

The facility should ensure better working conditions for its employees. This is because it will help them reduce turnover rate, which lowers the productivity.

Competition between firms enhances quality service delivery. This is because it gives people an alternative choice whenever need arise. It should therefore be encouraged since it has a positive effect to the public.

It is important for the facilities to advance technology-wise as this will assist in duties execution. Though the gargets may be expensive in the short-run, they may reduce the long-run expenses.


Hillman, A. & Seymann, M.(2009). Governance Challenges at Good Hands Healthcare (A). Ontario, Richard Ivey School of Business.

Kovner, A.R., Knickman, J. & Jonas, S.(2008). Jonas and Kovner’s Health Care Delivery in the United States. New York, Springer Publishing Company

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