Strategic Management Paper for

Mary Mediatrix Medical Center

Presented to

Professor Francisco Roa

Strategic Management

By:

Roselle Marie D. Azucena, RN, MAN

Thursday 6:00-10:00 pm

Sta. Rosa Campus

 TABLE OF CONTENTS

Chapter Topic/Title Page

Number Number

Acknowledgement

Executive Summary

I Introduction 1-5

II Research Design and Methodology 6-9

III External/ Environmental Analysis 10-36

a. Economic Factors

b. Social and Cultural Factors

c. Environmental Circumstances

d. Demographic Forces

e. Political and Government Forces

f. Legal and Legislative Forces

g. Technological

IV Industry Analysis 37-65

a. Description of the Industry

b. The Market

c. Service Creation and Delivery

d. Financial Analysis

e. Industry Developments
V Company Analysis 66-92

a. History and Ownership of the Company

b. Management, Company Culture, Structure

And Chart

c. Present Vision and Mission Statements, Code

Of Ethics

d. Financial and Non-Financial Objectives

e. Present Strategies, Market and Competition

f. Financial Analysis

VI Basic Assumptions 93-98

VII Strategy Formulation/ Matching Stage and

Decision Stage 99-113

a. External Factor Evaluation Matrix (EFE)

b. Internal Factor Evaluation Matrix (IFE)

c. Competitive Profile Matrix (CPM)

d. Strength/Weaknesses/Opportunities/Threats

Matrix (SWOT)

e. Strategic Position and Action Evaluation Matrix

f. Internal-External Matrix (I-E)

g. Grand Strategy Matrix (GRAND)

h. Matrix Summary

i. Quantitative Strategic Planning Matrix (QSPM)

VIII Recommendations 127-142

IX Evaluation and Success Indicators 143-152

Appendix

A- Request Letter

B- Financial Statements Mediatrix

C – Checklist

D- Physician’s Questionaire

E- Supplier’s Questionaire
 Dedication

This strategy paper is dedicated to the most important people in my life who had

made this endeavor possible…

To my husband Jay, the love of my life and best friend

God gave me you to make everything impossible be possible
Thank you for your selfless love, support and encouragement in all my endeavors

To my six children John, Matthew, Mika, Cheska, Anika and Luke,

my angels and my constant cheerleaders
Thank you for all of your kind understanding and unwavering love and support
For trying to be self-supportive and independent young as you are
To spare me the much needed time to finish this paper

To my Dad and my Mom, my unsung heroes and mentors

Thank you for teaching me the value of hardwork, dedication and humility
These values had helped me endure all obstacles and challenges
encountered in this study

To my sisters Sheila and Stella, my brothers Bong and Rico whose presence and
unconditional love were felt despite distance
Thank you for being there whenever I needed you

And

May I humbly dedicate this paper to God, Almighty Father

Who had masterfully crafted this path and has guided me towards this direction
for a good reason I do not know what nor why today
Thank you Father for all the blessings you had given me

ACKNOWLEDGEMENT
 Professor Francisco Roa

Faculty and Staff of Ateneo Graduate School of Business

Management and Staff of Mary Mediatrix Medical Center

Nursing Service Department

Lipa-Ateneo Regis Colleagues specially to the following:

Henry James Avecilla, Winnie Constantino, Paul Chang and Danjie Reyes

And

My heartfelt thanks to Dr. Robert Magsino and Ms. Marissa M. Panganiban for all the

support and for giving me an opportunity to serve MMMC

EXECUTIVE SUMMARY
 Mary Mediatrix Medical Center is a tertiary hospital in Lipa City, duly registered

and recognized as a corporation by the Republic of the Philippines. It was recently

awarded as a Center of Excellence by Philhealth. It is made up 177 MD shareholders

from the City of Lipa, nearby towns and Manila as well.

To be the premier “Hospital of Choice,” to serve the residents of Lipa and other

high growth areas in Batangas, Laguna, Cavite, Quezon and Mindoro by bringing the

much needed medical services closer to home at par with the other medical centers in

Manila is its main reason for existence.

There are seven critical success factors that are found in the Competitive Profile

Matrix – service orientation, financial position, market positioning, human resource,

technology, outpatients, and ancillary services. Service Orientation received the highest

weight among the critical success since most companies in the healthcare industry now

focus on the customer and not so much on profit. Pricing Competitiveness, Financial

Position and Market Positioning are the second most important critical success factors.

Among the external factors identified, presence of Industrial park in the region

and Demand for Medical Centers Offering Highly Specialized Medical Services and

Programs were given the highest weights of 0.15 because the industrial park will

create growth in the market and increase profitability most specially of the ancillary

services of the hospital. Demand for medical Centers offering highly specialized medical

services is also a high weighted opportunity because there are only few hospitals in the

region that has the capability to deliver these services and among these facilities,

Mediatrix has the most advanced and complete facilities to render specialized services.
Example of these specialized services would be Cathlab, MRI, CABG, Body Box for

Pulmonary clients etc.

Slow reimbursement of Philhealth claims is a major weakness by the hospital

as these may have been cause by improper billing or accomplishment of requirements.

With a high census like Mediatrix, slow return of claims might drain out the financial

resources that could otherwise be used for other profitable endeavor.

Six critical success factors were identifies to profit in the healthcare industry.

Quality Service orientation and delivery, Financial Position and Human Resource were

given the highest weight of 0.2 respectively.

Financial position is also a key competitive factor because resources are expensive and

service entails more employees and more operating cost.

Using the eight matrixes Mediatrix is projected to be a good and stable

company leading the industry in the area of Lipa. It has an IFE of 3.05 and EFE of 3.12

with a CPM of 3.75 leading the competing hospitals in the area.

After evaluating the major players in the Healthcare market of Lipa. Mary

Mediatrix Medical Center emerge as the leader in the pack of wolves by dominating 4

critical factors such as Finance position, clearly reflected by the financial ratios and

revenue derive from 50% market share of both the OPD and In Patient markets.

Space matrix shows that Mediatrix is responding well to both external and

internal factors and is aggressive to fully utilized its financial advantage over
competitors. To further dominate the market and retain leadership it should employ

strategies such as market penetration, market development, product development,

forward, backward, horizontal integration or go to diversification of various types such

as concentric, conglomerate or horizontal.

For Mediatrix to retain leadership of the market it must continue to grow and

build, otherwise closest competitor maybe able to overtake it. Strategies suggested are:

Market penetration, Market Development, Product development, Backward integration,

Forward integration and Horizontal Integration

Mediatrix is plotted in quadrant 1. According to Fred Davis, firms located in

Quadrant 1 are in an excellent strategic position. Continued concentration on current

markets and products are appropriate strategies. It will be unwise for this firms to shift

from the established competitive advantages. If the firm has excessive resources, then

backward, forward or horizontal integrations maybe effective strategies.. When a firm is

too heavily committed to a single product, concentric diversification may reduce risks

associated with a narrow line. Q1 firms can afford to take advantage of external

opportunities in several ways and can take risks aggressively.

In QSPM key external factor given the highest weights are presence of Industrial

park and demand for medical center offering highly specialized medical services and

major key internal factor is the 100% highly credentialed MDs. After rating and

multiplying it with the allotted weights, Market penetration remains a priority, followed by

background integration ,product development then by market development.

Strategies formulated for Market Penetration are :1. Offer Executive Packages,
Pre-employment, annual PE and hospitalization services to the new companies in the

Industrial Park through an integrated marketing plan ;2. Develop Age Specific Care

Programs and Services ;3. Add Service Quality Improvement Programs such as

Personalized Services to develop customer loyalty ;4. Offers highly specialized

services that cannot be provided by other hospitals ;5. Tie up with other hospitals in the

region to be the referral center of patients needing highly specialized care and

diagnostic services. Backward Integration strategies includes: 1. Tie up with suppliers to

offer services at a lesser cost ; 2. Improve and upgrade facilities;3. Tie up with

Government Hospital to refer indigent patients;4. Secure Long term Loans to increase

Cash; 5. To create a systematic process of facilitating prevention of bad debts or

ballooning accounts receivable;6. Improve and upgrade facilities.

Over all the strategies will be evaluated and monitored through control measures

based on key performance criteria through a balanced score card.

With the intervention the company will have an increase in revenue by 20%,

decreasing cost of sales by 5%, with OPEX at 20% and an additional bank loan of 10M

at 7.5%/annum at AR and AP in 30 day term earning a net profit of 55,999,549.95 from

a baseline projection of 4,358,082.26.