Strategic Management Paper On Las Piñas General Hospital and Satellite Trauma Center

A STRATEGIC MANAGEMENT PAPER OF
LAS PIÑAS GENERAL HOSPITAL AND SATELLITE TRAUMA CENTER
In Partial Fulfillment of the requirements for the subject
Strategic Management 2
Submitted by:
Corpuz, Chris Gina Marie D.
Domingo, Joycielle T.
Figueroa, Marilyn C.
Sacres, Neriss N.
Satingin, Jennifer S.
Submitted to:
Professor Alejandro Bautista, MBA

Strategic Management Paper on Las Piñas General Hospital and Satellite Trauma Center 2
EXECUTIVE SUMMARY
The purpose of this executive summary is to provide an overview of the strategic plan
for Las Piñas General Hospital and Satellite Trauma Center (LPGH & STC). This plan outlines
the hospital's objectives for the next five years and the strategies that will be implemented to
achieve them. The plan is the result of extensive research, analysis, and some inputs from
stakeholders, including hospital staff, and patients as well.
The healthcare industry is rapidly evolving, and LPGH & STC recognizes the need to
adapt and innovate to stay competitive and provide high-quality care to its patients. The
hospital's strategic plan focuses on improving patient experience, increasing operational
efficiency, expanding services to meet the needs of the community. Also, it is focused on
establishing ways on how to be self-reliant by way of generating income on its own and to
utilize it well.
The following sections of this executive summary will provide a summary of the
hospital's current position, the objectives of the strategic plan, and the key strategies that will
be implemented to achieve these objectives.
The purpose of this strategic planning report is to provide an analysis of our hospital's
current performance and to recommend a strategic direction to help us achieve our short and
long-term objectives. The report is based on a comprehensive review of internal and external
factors that impact our hospital's operations, including market trends, competition, and our own
strengths and weaknesses.

Our analysis indicates that while we have maintained a strong position in the market,
there are several areas where we can improve our competitive advantage. Our strengths include
highly skilled medical professionals, our wide range of health services & clinical departments,
state-of-the-art facilities, increase financial assistance from the National Government, strong
executive & legislative actions in providing support and excellent health care. However, we
face significant challenges such as inadequate manpower, lack of effective communication
facility, outdated digital infrastructure, and evolving government policies and regulatory
requirements.
To address these challenges, we recommend that the hospital implements a
Responsibility Accounting System to improve every unit’s performance in terms of income
generation, as well as the preparation of a cost benefit analysis or a feasibility study to support
the procurement of equipment. This strategy will greatly help in minimizing unutilized
equipment, promote savings and increase income generation.
Another recommendation is the immediate hiring of personnel through Contract of
Service to fill up the inadequacy of manpower in various departments. It must be supported
also by a justification and cost benefit analysis to avoid unreasonable requests.
We also recommend that the hospital invests in developing a robust digital
infrastructure that leverages data analytics and automation to improve collection of receivables
from Philhealth, clinical decision-making, reduce costs, and enhance operational efficiency.
This includes improved telemedicine, and patient engagement tools to improve care
coordination and communication across the continuum of care.

Overall, we believe that the recommended strategic direction will position the hospital
for long-term success and help us achieve our objectives of improved patient outcomes,
enhanced patient experience, increased operational efficiency, and promote self-reliance.

TABLE OF CONTENTS
Executive Summary 2
Table of Contents 5
Acknowledgments 8
I. INTRODUCTION 9
II. EXTERNAL ENVIRONMENT ANALYSIS
A. MACRO
1. Political Aspects 12
2. Economic Aspects 12
3. Sociological Aspects 13
4. Technological Aspects 13
5. Legal Aspects 14
6. Environmental Aspects 14
B. Immediate industry and competitive environment (Porter’s Analysis)
1. Suppliers 14
2. Rival Firms 15
3. Buyers 16
4. Substitute products 18
5. New entrants 19
C. Threats and Opportunities 20
D. EFE Matrix 22
E. Strategic Issues based on External Factors 24
III. INTERNAL ENVIRONMENT ANALYSIS
A. Company Resources and Capabilities 24
B. Competitive Position 32
C. Value Chain Analysis 34
D. Financial Analysis 37
E. IFE Matrix 43
F. Strategic Issues based on Internal Factors 45
IV. STRATEGY FORMULATION
A. SWOT Matrix 45
B. SPACE Matrix 47
C. Internal – External Matrix 49
D. GRAND Strategy Matrix 50
E. Summary of Strategies 52
F. Quantitative Strategic Planning Matrix 53
V. STRATEGY PLAN
A. Vision and Mission 55
B. Objectives (short term and long term) 55
1. Strategic
2. Financial
C. Recommended Business Strategy 56
D. Corporate Social Responsibility 58
E. Financial Projections 61
F. Supporting Functional Strategies
1. Production/Operations 63
2. Finance 63
3. Personnel 64
4. MIS/IT 64
VI. IMPLEMENTATION AND CONTROL
A. The Balanced Scorecard 65
B. Contingency Planning 66
ACKNOWLEDGEMENTS
This Strategic Management Paper would not have been possible without the help of
several individuals who greatly contributed to the preparation of this paper. After all, it is just
right to express our gratitude to the following:
First and foremost, to Almighty God, who give us the guidance, knowledge, wisdom,
and strength to finish this paper.
To the Las Piñas General Hospital and Satellite Trauma Center, for allowing us to use
the agency’s data.
To Dra. Estrellita Bautista, our beloved site coordinator and to
Professor Alejandro “Jhay” Bautista, our Strategic Management Professor,
for the never-ending guidance and support.
To our family for their love, support, provisions, and understanding throughout the
process of making this strategic management paper.
We would also like to express our gratitude to each and every one of us in our group,
for the hard work and cooperation in completing this paper.

I. INTRODUCTION
Strategic management is a term that implies a continuing process of a development plan,
implementation, and evaluation. It is a broader concept of a strategic planning which is an
important management tool that is being used in almost every sector of the industry including
government agencies as well. It helps an organization define its core values, vision, mission,
its challenges, and opportunities and aims to establish long-term and short-term goals and guide
its business processes to be able to measure its performance. It specifically aids every
organization to create its future plans rather just react to it. But this will only become effective
if this will be linked with other key business processes like stakeholders’ interests and
performance measurement and not just be conducted as a separate planning exercise. By doing
so, strategic planning can be a very powerful tool for the effective strategic management of an
organization.
This strategic management paper aims to provide the framework for the
Las Piñas General Hospital and Satellite Trauma Center (LPGH & STC) in the creation of its
policy with regards to its income utilization. The purpose of this project is to provide ways on
how to help different cost centers monitor and increase their revenues that will set direction
with regards to their vision. This also aims to address issues concerning unutilized equipment
thus help the management prioritize acquisition of capital assets as well as guide them in the
proper charging of funds. This project will also help different units to support its
acquisition/purchase of equipment as well as hiring of additional Contract of Service (COS) by
means of creating a cost-benefit analysis or a feasibility study to justify the request. The internal
management plan will contain specific, measurable, achievable, and relevant objectives that
are aligned with the goals and strategies currently used by the agency.
Every personnel who work in the hospitals, from management down to its rank-and-file
employees, need a clear picture of where their agency is heading, what are their goals and how
they intend to reach them. Like any organizations, hospitals too, need plans that clearly describe
and define their goals in order to achieve it. Establishing these goals give those in the
management level and its different responsibility centers the opportunity to respond and make
decisions in response to evolving internal and external needs.
BACKGROUND
In 1977, the Las Piñas Emergency Hospital was established to serve the people of Las
Piñas. The hospital was initially located at Barangay Daniel Fajardo, in front of the famous
Bamboo Organ Church and near the municipal hall of Las Piñas. The facility was initially
composed of an out-patient clinic. It has then undergone several renovations to become a 25-
bed, two-storey hospital within a 700 square meter floor area. At that time, the lot was owned
by the municipality of Las Piñas but the hospital was under the supervision of the Department
of Health (DOH), Region 4, Province of Rizal.
In 1984, the hospital was renamed as Las Piñas District Hospital (LPDH). In October
1987, by virtue of Executive Order No. 119, the hospital was integrated with the newly
established National Capital Region for Health under the District Health Office No. IV, Las
Piñas. In May 1992, with the approval of RA 7539, the bed capacity of the hospital was
increased from 25 to 50 beds, but the implementing bed capacity remains to be 25 due to
inadequate manpower and budget. In 1995, the DOH issued Department Order No. 127-A,
amending Department Order No. 146 series 1994, upgrading LPDH capabilities from a district
hospital to a general hospital.

Due to this issuance, the hospital was expected to increase in patient load. The LPDH
was then transferred to its new location in December 1997. It is now situated south of the
National Capital Region, specifically at Padre Diego Cera St., Bernabe Compound, Barangay
Pulang Lupa I, Las Piñas City, serving the MUNTIPARLASPA cities (Muntinlupa, Parañaque,
Las Piñas, and Pasay) and the cities of Bacoor and Imus and the neighboring towns of Cavite.
In February 1999, LPDH was chosen to be the pilot in implementing the integration of
public health services in the hospital under the Department of Health-Center for Health
Development-Metro Manila (DOH-CHD-MM) Integrated District Health Center. The system
created the District Health Advisory Board thus strengthening collaboration and coordination
with the four cities of the South of Metro Manila and the nearby municipalities of the Province
of Cavite. It was on February 10, 2004, when RA 9240 was passed and approved converting
LPDH to a Medical Center and rename it as Las Piñas General Hospital and Satellite Trauma
Center (LPGH & STC). The law provides for an increase in bed capacity from 50 to 200 beds
within a span of five years.
Moving forward, President Rodrigo R. Duterte signed into law RA 11497 last
November 13, 2020. This act increases the bed capacity of LPGH & STC from 200-bed
hospital to a hospital with 500-bed capacity. Senator Cynthia Villar, who pushed for the
passage of the measure in the Senate, said the hospital expansion will greatly benefit patients
in South of Manila and nearby cities and municipalities of Cavite. The existing workforce of
the hospital which includes doctors, nurse, and support service will also increase
correspondingly.
II. EXTERNAL ENVIRONMENT ANALYSIS
A. MACRO
EXTERNAL OPPORTUNITIES EXTERNAL THREAT
Strong Legislative Support both Top Management Leadership

coming from the Congress and Senate positions as well as Top
Management decisions can be
affected by political
personalities
POLITICAL
Upcoming National Elections can Change in the DOH strategic
affect the implementation of the directions due to change in the
different DOH programs and National Leaders
development plans of the hospital
Malasakit Law mandates the creation Economic hardship experienced
of the “Malasakit Centers” in by people due to COVID
government hospitals which will pandemic such as
provide financial medical assistance to overwhelming government
indigent patients loans, high poverty rate, slow
economic growth, and low GDP
and GNP
Bayanihan to Heal as One Act provides Inadequate disbursement of the
ECONOMIC assistance to hospital through the Bayanihan Package provided
provision of additional budget for by the National government
hospitals to hire additional manpower,
procure medicines, medical supplies
and equipment, and medical facilities
to combat Covid infection
PHIC provides reimbursement for Not all COVID case are
identified case rates package as well as reimbursed such as Covid mild,
and moderate
Covid infections for severe and critical
cases
There are PHIC case rates such as Z- Changing PHIC policies on
packages and Primary Care packages reimbursement for case rates
that needs to look into as new
reimbursement packages
CSC’s mandate of “skeletal Most of the patients are
workforce” during the pandemic classified as Class D and E
without compromising the healthcare based on socio-economic strata
service provision
Compliance with the Anti-Red Tape Complaints from patients due to

SOCIOLOGICAL
Law to improve customer service delay in the provision of service
Accreditation of the Accrediting Decrease in the number of
Bodies for Different Residency hospital admission can affect
Training Programs among the clinical the accreditation of the different
departments residency training programs
Use of Telehealth/ teleconsultation/tele Use of technology in healthcare
dentistry in the provision of the needs long-term planning and
healthcare service at the OPD creation of a strategic direction
within the institution
The use of digital technology such as There is a need to improve the
the inventory system in the MMS, e- hospital’s digital architecture of

TECHNOLOGICAL
commerce in accounting and finance the hospital to provide
division, and use of Radiology efficiency in the different
Information System (RIS) and hospital processes
Laboratory Information System (LIS)
can improve in the efficiency in the
hospital processes
Universal Health Care will enable the The hospital needs to comply
hospital to provide sustainable with the different legislative
healthcare provision to every patient mandates such as the Data
without compromising the hospital’s Privacy Act, Environmental
financial sustainability and social laws, and Hospital Building
responsibility codes
LEGAL
Implementation of RA 9184 during the Compliance with RA 9184 or
procurement process of the hospital “Government Procurement
Reform Policy” which will
modernize, standardize, and
regulation of the procurement
activities of the hospital
The possibility of adapting and Hospital waste disposal and
creating a “Green Hospital” in the risk for infection can result to

ENVIRONMENTAL
future complains from nearby
community
B. PORTER’S FIVE FORCES ANALYSIS
1. BARGAINING POWER OF SUPPLIERS
The bargaining power of suppliers in the public hospital industry refers to the ability of
suppliers, such as medical equipment manufacturers, pharmaceutical and medical supplies
companies and outsourced staffing agencies, to influence the industry and its participants.
These particular suppliers have some bargaining power because of their specialized expertise
and the critical nature of the products and services they provide.
However, the government’s role in funding public hospitals can reduce the bargaining
power of suppliers. This is because the government often requires public hospitals like LPGH
& STC to comply and go through the bidding process in the government procurement. In other
words, suppliers must compete with each other to offer the lowest price but with the best quality
of products and services. This can help reduce the influence of individual suppliers in the
market and prevent them from charging excessively high prices or demanding unreasonable
terms.
Public hospitals must carefully balance the need for high quality supplies and services
with the need to maintain reasonable costs and maximize the value for patients and taxpayers.
They must consider the bargaining power of suppliers when evaluating their competitiveness
and profitability. They must also ensure that they are getting the best deals possible from their
suppliers without compromising the quality of care they provide to patients.
Overall, the bargaining power of suppliers in the public hospital industry is an important
element to consider when evaluating the industry’s competitiveness and profitability. Public
hospitals must balance the need for high quality supplies and services with the need to maintain
reasonable costs and maximize the value for patients and taxpayers.
2. INTENSITY OF COMPETITIVE RIVALRY
The public hospital industry is characterized by extreme competition among various
hospitals that are contending to attract patients and secure funding. In this highly competitive
environment, large healthcare organizations and hospital networks may have an advantage
because of their size and bargaining power, allowing them to negotiate with suppliers and
vendors more effectively. As a result, they may be able to offer healthcare services more
efficiently and effectively. On the other hand, smaller hospitals may be able to compete by
offering specialized services or personal care, which may be difficult for large organizations to
provide.
Government regulations and funding are also one of the major factors that can influence
the competitive setting of the public hospital industry. The government heavily regulates the
healthcare industry, which can create a complex and costly regulatory environment that may
be challenging for smaller hospitals to navigate. In addition, public hospitals like LPGH & STC
receive funding from the government, which can provide them with a substantial edge over
private hospitals and new entrants that may struggle to secure funding from other sources.
Therefore, the availability of government funding and the scope of regulatory
requirements are important factors that can shape the competitive environment of the public
hospital industry. Hospitals that are able to effectively manage their regulatory requirements
and secure government funding may have a distinct advantage over their competitors.
Meanwhile, smaller hospitals may need to find creative ways to differentiate themselves and
provide specialized services to remain competitive. Ultimately, the public hospital industry is
characterized by fierce competition, and hospitals that are able to navigate these challenges
effectively are more likely to succeed.
3. BARGAINING POWER OF BUYERS
The bargaining power of buyers is a critical factor that affects the public hospital
industry. In this industry, buyers are mainly composed of the patients and government agencies.
The bargaining power of government agencies is particularly strong because they have the
ability to negotiate reimbursement rates for medical services. This means that public hospitals
have to work closely with government agencies to receive the necessary funds to provide
services. Therefore, the bargaining power of government agencies can significantly influence
the financial stability and sustainability of public hospitals.
On the other hand, patients may also have some bargaining power, particularly if they
have the ability to choose between different hospitals or if they have insurance that covers
multiple healthcare providers from private hospitals. This can be mostly true if there are several
public hospitals in a particular area because patients may be able to choose where to receive
medical care. In this case, public hospitals may compete to provide high quality care and attract
patients. This can lead to a situation where public hospitals need to focus on patient satisfaction
and quality of care in order to remain competitive.
Though in some cases, patients may not have substantial bargaining power, especially
if they have limited options for healthcare providers due to geographic or financial constraints.
In these situations, the bargaining power of government agencies may be even more significant.
In such cases, public hospitals need to work closely with government agencies to ensure that
they have the necessary funding to provide services, even if patient choice is limited.
Generally, the bargaining power of buyers in the public hospital industry can differ
depending on a series of factors, including the availability of hospitals in the area, insurance
coverage, and financial constraints of patients. Therefore, it is important for public hospitals to
carefully consider the needs and preferences of their patients and work closely with the
government agencies who fund them. By doing so, public hospitals can improve their
bargaining power and guarantee their financial sustainability while providing high quality
medical services to patients.
4. THREAT OF SUBSTITUTE PRODUCT OR SERVICES
The threat of substitutes in the public hospital is relatively low because healthcare
services are necessary and cannot be substituted by any other means. Public hospitals provide
critical medical services that are mostly crucial in order for patients to survive, therefore they
cannot be replaced by any other substitutes. For example, life-saving surgeries and emergency
care services cannot be replaced by alternative healthcare providers, making the threat of
substitutes minimal.
However, some substitutes may exist in the form of alternative healthcare providers,
such as health clinics which can be found on every barangay in Las Piñas City, urgent care
centers, lying-in clinics, and telemedicine services. These substitutes may offer some level of
competition to public hospitals, especially for non-critical medical services such as routine
check-ups or minor illnesses. Though, these substitutes may not be able to entirely replace the
services provided by public hospitals, especially for more complex medical conditions.
Overall, the low threat of substitutes in the public hospital industry is due to the
indispensability of healthcare services and critical nature of most medical services provided by
public hospitals. While alternative healthcare providers may provide some level of competition,
they cannot fully replace the services provided by public hospitals. The public hospital industry
is essential and necessary for providing critical medical services to patients, making it difficult
for any substitute to fully replace its services.

5. THREAT OF NEW ENTRANTS
The public hospital industry is widely known to have high barriers to entry, which make
it difficult for new players to establish themselves. One of the main reasons for this is the
significant large amount of capital required to start up a hospital and purchase specialized
medical equipment and skilled employees. These factors make it extremely challenging for
new entrants to enter the public hospital industry and compete effectively with existing players.
On the other hand, public hospitals like the LPGH & STC, have an advantage over private
hospitals due to the funding coming from the DOH, Department of Budget and Management
(DBM), and other legislators. This funding enables them to invest in the latest medical
technology and facilities, which can be a significant barrier for new competitors to establish
themselves. In addition, public hospitals have established relationships with patients, which
makes it hard for new entrants to gain market share. Patients are more likely to stay with the
hospital, they are familiar with and trust, which means that existing established hospitals have
a significant advantage over new players.
Furthermore, public hospitals often have more experience and knowledge in treating
patients with complex medical conditions. This experience and knowledge can be challenging
for new competitors to replicate, especially if they are just starting out in the industry. Public
hospitals also have established networks with other healthcare providers and government
agencies, which can make it easier for them to collaborate and provide a comprehensive range
of healthcare services to patients.

C. THREATS AND OPPORTUNITIES
Threats
 Complaints coming from patients who are not satisfied with the service
provided.
 Resignation of personnel because of better opportunities abroad especially the
medical practitioners.
 Limited available supplies of medicines and equipment due to increase in the
global demand and limitation in logistic movement.
 Mandates by the government that the hospital needs to follow.
 Informal settlers surrounding the hospital and its quarantine facility that
trespasses the area and the risk for losses due to robbery.
 Complaints coming from nearby community due to concerns with regards to
risk of infection that may acquire from the quarantine facility.
 Risk of non-collections of collectibles from PHILHEALTH because of strict
regulatory compliance policy.
 Compliance with Data Privacy Act when using digital platforms in providing
health services.
 Compliance with the DOH requirements for a level III hospital.
 There is no assurance of sustained support coming from the National
Government with the change in the leadership in the NGA.
 Compliance with the different requirements of the different residency
accrediting institutions.
 Medical specialists may prioritize private clinical practice in other health
institutions.
 Subpar Third-party service due to limited number of bidders.
 Politics has a great influence on the hospital leadership as well as its budgetary
considerations.
Opportunities
 Fast track hiring of Healthcare Personnel through Bayanihan Heal As One Act.
 Government ramp actions in providing support during pandemic or calamities.
 Continuous supply of PPE, medicines and hospital supplies coming from DOH/
NGAs/ NGOs in response to pandemic.
 Presence of Legislators (Congress and Senate) supporting the hospital by
facilitating programs mandated by the National Government.
 Creation of MALASAKIT PROGRAM that helps indigent patients in paying
their bills.
 Use of digitalization to improve hospital healthcare services.
 Increase in National Budget Allocation and Manpower Pool due to Level III
accreditation.
 Strong executive and legislative support to fast track the acquisition of lot and
construction of new building.
 Financial assistance through pledges coming from the Legislative branch of
government and other institutions such as PAGCOR and PCSO.
 The collective internal leadership and ensuing political shift can result in a more
progressive hospital program with assured financial viability.

D. EFE MATRIX
EFE Matrix
Key External Factors
Weighted
Opportunities Weight Rating
Score
Fast track hiring of Healthcare Personnel through
0.025 3 0.075
Bayanihan Heal As One Act.
Government ramp actions in providing support
0.050 3 0.150
during pandemic or calamities.
Continuous supply of PPE, medicines and hospital
supplies coming from DOH/ NGAs/ NGOs in 0.025 3 0.075
response to pandemic.
Presence of legislators (Congress and Senate)

supporting the hospital by facilitating programs 0.070 4 0.280
mandated by the National Government.
Creation of MALASAKIT CENTER in the hospital

0.100 4 0.400
that helps indigent patients in paying their bills.
Use of digitalization to improve hospital healthcare

0.100 2 0.200
services.
Increase in National Budget Allocation and
0.100 4 0.400
Manpower Pool due to Level III accreditation.
Strong executive and legislative support to fast
track the acquisition of lot and construction of new 0.070 4 0.280
building.
Financial assistance through pledges coming from
the Legislative branch of government and other 0.070 4 0.280
institutions such as PAGCOR and PCSO.
The collective internal leadership and ensuing

political shift can result to a more progressive 0.050 2 0.100
hospital program with assured financial viability.
EFE Matrix
Key External Factors
Weighted
Threats Weight Rating
Score
Complaints coming from patients who are not
0.050 3 0.150
satisfied with the service provided.
Resignation of personnel because of better
opportunities abroad especially the medical 0.050 2 0.100
practitioners.
Mandates by the government that the hospital
0.020 3 0.060
needs to follow.
Informal settlers surrounding the hospital and its
quarantine facility that trespasses the area and the 0.020 2 0.040
risk for losses due to robbery.
Risk of non-collections of collectibles from
PHILHEALTH because of strict regulatory 0.020 3 0.060
compliance policy.
Compliance to Data Privacy Act when using
0.020 3 0.060
digital platforms in providing health services.
Compliance with the DOH requirements for a
0.020 4 0.080
level III hospital.
There is no assurance of sustained support
coming from the National Government with the 0.050 2 0.100
change in the leadership in the NGA.
Compliance to the different requirements of the
0.020 3 0.060
different residency accrediting institutions.
Medical specialists may prioritize private clinical
0.020 2 0.040
practice in other health institutions.
Politics has a great influence on the hospital
0.050 2 0.100
leadership as well as its budgetary considerations.
TOTAL 1.00 3.09
E. Strategic Issues based on External Factors
 The hospital is dependent on the support coming from the government, especially from
DOH, DBM and legislators.
 The hospital’s capability in terms of procurement and usage of funds is limited because
it is bounded by laws and regulations mandated by the government, especially the
procurement law and the COA’s rules and regulations.
 Being a government hospital, Las Pinas General Hospital and Satellite Trauma Center
are required to apply and comply with different accreditation and policies implemented
by DOH.
III. INTERNAL ENVIRONMENT ANALYSIS
A. Company Resources and Capabilities
Identifying a company's resources and capabilities is an essential aspect of strategic
management. Resources are the tangible and intangible assets that a company possesses, while
capabilities are the company's ability to use its resources to perform specific tasks. It is crucial
to identify a company's resources and capabilities as they play a significant role in determining
the company's competitive advantage and long-term success.
LPGH & STC is a healthcare facility located in the city of Las Piñas City. The hospital
is known for its wide range of medical services, state-of-the-art facilities, and highly skilled
medical professionals. As discussed earlier, in 2020 the LPGH & STC was upgraded to a Level
3 hospital with a 500-bed capacity. It is a DOH-retained hospital under the direct supervision
of the DOH through the National Capital Region Office. As a tertiary hospital, it provides
preventive, curative and rehabilitative services for all types of cases. The hospital is also a
capable level 1 trauma unit with support services capabilities needed for health operations. It
is likewise a training and research institution for resident physicians. It has also adopted the
automation of some of its support services like the accounting system, as well as the inventory
system. The service capability of the LPGH & STC and staffing requirements will be increased
based on the hospital’s development plan submitted and approved by DOH.
In response to this mandate, a Transition Committee is to be created. The committee
was composed of selected DOH officials to assist the hospital management in formulating the
five-year development plan. This will aim to address the transition phase in both the
infrastructure including effective communication facilities and manpower capability of the
hospital. Some of its digital infrastructures are considered outdated like the system being used
and poor internet connection in the processing of Philhealth claims of the hospital. Due to
problems being encountered, the hospital suffers losses caused by unreimbursed claims from
Philhealth. Staffing pattern is also one of the concerns in this agency since there are a lot of
vacant positions needs to be filled up to ensure that there are right people in the right positions
to achieve its goals while maintaining productivity and efficiency.
The Five-year development plan was used as reference for the planning of the hospital
improvement and the preparation of the budget requirements.
In line with this, construction of a new building of the LPGH & STC has begun at
acquired lot just beside the hospital.
The 12-storey LPGHSTC building will include the provision of 300 additional beds, as
well as much-needed health care services and facilities, and state-of-the-art equipment and
technology. Hopefully, this will address the absence of private rooms that will cater to paying
patients of some of its medical consultants since private practice is still not allowed in this
hospital.
Some of the wide range of services offered by LPGH & STC include emergency care,
inpatient care, outpatient services, diagnostic imaging, laboratory services, surgery, and
rehabilitation services. The hospital is also equipped with a Level III Trauma Center, which
means it has the capacity to provide immediate care to patients with life-threatening injuries.
Although LPGH & STC caters almost all of the major services a hospital can offer, some
diagnostics procedures need to be sent out to other bigger government hospitals with medical
facilities and equipment that will process the specimens.
The following are the services that the hospital provides and its support services:
i. Clinical Service
Internal Medicine Surgery Pediatrics
Nephrology General Surgery General Pediatrics
Pulmonology Ambulatory Surgery Neonatology
Cardiology Laparoscopic Surgery Rheumatology
Infectious Disease Colo-rectal Surgery Cardiology
Gastroenterology Orthopedic Surgery Pulmonology
Dermatology ENT Infectious Disease
Geriatric Ophthalmology Hematology
Rheumatology Urology Oncology
Plastic & Reconstructive

Hematology Allergology
Surgery
Oncology Pediatric Surgery Gastrology

Endocrinology Neurosurgery Neurology
Neurology Thoraco-Vascular Surgery Development Pediatrics
Oncology Oncologic Surgery Nephrology
Psychiatry (APU) Hepatobiliary Surgery
Minimal Invasive Surgery
Family & Community

Obstetrics & Gynecology Anesthesiology
Medicine
General Obstetrics Pediatrics Anesthesia Emergency Medicine
OB-Gyne Sonology Pain Management
Gyne Oncology Neuro Anesthesia
Perinatology Critical Care Medicine
High Risk Pregnancy Regional Anesthesia
Reproductive & Infertility
Infectious
ii. Out-Patient Department
Internal Medicine
Surgery
Pediatric
Obstetrics & Gynecology
Dental Unit
Smoking Cessation Clinic
OB-Gyne Ultrasound Section
Physical Medicine & Rehabilitation
Pain Management
iii. Emergency Department
Internal Medicine
Surgery
Pediatric
Obstetrics & Gynecology
Trauma
iv. Public Health Unit
DOTS
Hospital Epidemiology Surveillance Unit
Animal Bite Center
Emerging & Re-emerging Diseases
Communicable Disease
Non-communicable Disease
v. Nursing
A. General Nursing Services
I. Clinical Wards
B. Special Nursing Services
I. Operating Room
II. Emergency Room
III. Delivery Room
IV. PACU
V. NICU
VI. PICU
VII. MICU
VIII. SICU
IX. OPD
X. Hemodialysis
C. Central Supply Unit
D. Respiratory Medicine Unit
vi. Ancillary
A. Medical Imaging Department
I. Digital Radiography
II. Computed Tomography
III. Ultrasonography
IV. PACU
B. Laboratory Department
I. Anatomical
II. Clinical
III. Blood Bank Services
IV. Molecular Laboratory
C. Physical Medicine & Rehabilitation
I. Occupational
D. Pharmacy
I. Clinical Pharmacy
E. Heart Station
I. ECG
II. 2D Echo (Pediatric & Adult)

F. Dialysis Unit
G. Health Information Management Service
I. Admitting/Information Unit
H. Medical Social Work Service
I. Malasakit Center
I. Nutrition & Dietetics
vii. Hospital Operations & Patient Support Services
A. Human Resource Management
B. Procurement
C. Materials Management Service
D. Engineering & Facilities Management Service
I. Housekeeping
II. Linen & Laundry
III. Security Services
IV. Transport Service
V. Biological Medical Service
viii. Finance Service
A. Accounting
B. Billing & Claims
C. Budget
D. Cash Operation
ix. Office of the Chief Medical Professional Staff II
A. Medical Division
B. Ancillary Services
x. Office of the Medical Center Chief
A. Legal
B. Integrated Hospital Operation & Management
Program
C. Professional Education Training & Research Unit
D. Strategic Management Unit
E. Infection Prevention & Control Committee
F. Health Emergency Management Staff
The hospital is staffed by a team of board-certified medical professionals who are
trained in various specialties, such as internal medicine, surgery, obstetrics and gynecology,
pediatrics, anesthesiology, radiology, and pathology. The hospital also has a nursing staff that
is trained to provide quality care to patients. Currently, the LPGH & STC has a population of
740 permanent employees, 47 employees under contract of service and 2 employees hired
under COS-Human Resource for Health. Like some other hospitals, LPGH & STC also
experiences inadequate pool of nursing personnel and medical specialist due to high turn-over
of nursing staff looking for a better future in other countries. While its Human Resource
Management Department is on continuous hiring to address the vacant and new positions
needed for the upgrade, it has not yet adopted the use of CS-Prime in hiring of hospital
personnel.
B. Competitive Position
LPGH & STC Center being an ISO 9001:2015 accredited hospital is equipped with
modern medical equipment, including digital X-ray machines, ultrasound machines, CT
scanners, and MRI machines. The hospital also has an operating room complex that is equipped
with the latest surgical equipment and technology. Due to strong legislative and political
support, LPGH & STC has prioritized special projects which includes vaccination, a molecular
laboratory, and a modular quarantine facility which caters to Covid patients with mild and
moderate cases. Although this is beneficial to the hospital’s clients, other healthcare services
were not addressed due to some of its funds and resources are used in these prioritized projects
as mandated by the National Government.
The hospital provides a safe and healthy environment to all its employees and clients.
In addition, the hospital also conducts regular preventive maintenance program to ensure that
the facilities and equipment are well maintained and always in good condition. It also
implements the Client Satisfaction Survey (Internal) and Client Experience Survey (External)
tool developed by the DOH in order to determine and analyze client requirements as part of
assessing the hospital’s quality service position. This is an important tool used by the hospital
for continual quality improvement of the processes. LPGH & STC also offers Telemedicine
which is an online consultation which started during the pandemic outbreak to provide
healthcare services in various clinical services such as Out-Patient Department, Dental
services, and Physical Medicine & Rehabilitation.

In addition to its medical services and facilities, LPGH & STC is also committed to
community outreach programs. The hospital conducts health education and medical missions
to underserved communities in the city and its neighboring areas.
LPGH & STC is a government-owned hospital that receives funding from the DOH.
The DOH is the primary government agency in the Philippines responsible for ensuring the
access and delivery of quality health services to the public. The DOH receives funding from
various sources, including the national government, international organizations, and other
funding agencies. The Philippine government yearly allocates fund for the DOH in the General
Appropriations Act (GAA) intended to support the various programs and initiatives of the
DOH, including the implementation of the Universal Health Care law, the procurement of
vaccines, and the improvement of health facilities and equipment where LPGH & STC is one
of its main recipients. During the pandemic outbreak, the National Government has increased
the financial assistance given to DOH hospitals to address the demands in procuring various
medicines, supplies and needed equipment. The hospital at times encounters inadequate supply
of medicines, medical supply, and equipment due to difficulty in the procurement process.
As a public hospital, it primarily provides healthcare services to the indigent and
marginalized sectors of the society at affordable rates. LPGH & STC carries a "No balance
billing" policy to prevent patients from being billed for the difference between the amount their
health insurance company or PhilHealth is willing to pay for a service and the actual cost of
that service. In this way, patients are protected from paying unexpected and potentially large
medical bills.
Other sources of funds are the hospital income. In general, hospital income may come
from various sources such as hospital fees, government subsidies, and donations. Hospitals
may also generate income from ancillary services such as pharmacy sales, laboratory services,
and diagnostic imaging.
It's important to note that while income is essential to sustain hospital operations and
improve facilities and services, the primary focus of healthcare institutions such as LPGH &
STC is to provide quality healthcare services to patients regardless of their socio-economic
status.
C. Value Chain Analysis
Value chain analysis is a management tool that helps organizations identify and analyze
the different activities that they perform to create value for their customers. In the context of a
hospital, value chain analysis can help identify the various activities that contribute to the
delivery of healthcare services, including diagnosis, treatment, and post-operative care.
The LPGH & STC Process Map defines the interaction of the processes within the
quality management system and the customers. The patient may avail of the following hospital
services through these areas: emergency room, Out-patient department, and in-patient wards.
These services are classified into two groups namely:
o Core services- services that are responsible for direct patient care which includes the
Medical and Nursing services.

o Support services- services that help/assist the core services which includes Hospital
Operations and Patient Support Service and Finance Service.
Management oversees the planning, direction, coordination, implementation,
monitoring, and evaluation of the different core and support services under the quality
management system. The integrated processes, policies, and procedures, its implementation
and effectivity are monitored through the following: conduct of internal audit based one the
audit criteria set by ISO 9001:2015, control of non-conforming products, customer satisfaction
survey, issuance of corrective actions and control of documents and records.
In order to become a more effective and efficient organization, processes under the
quality management system of LPGH & STC are regularly measured through performance
indicators for the attainment of the quality objectives and targets. The hospital ensures
effective and efficient measurement indicators through an approved monitoring and evaluation
system.
The Internal Quality Audit serves as the primary activity in the monitoring and
measurement of processes. The audit findings shall demonstrate the ability of the process to
achieve desired outcomes. The role of the QMSU is to regularly monitor the implementation
and effectiveness of the Quality Management System of the LPGH & STC.
Data gathered from monitoring and evaluation including clients’ feedback
(from both external and internal) are analyzed and used as reference and guide for the continual
improvement of the system and processes in collaboration with SMU and CQI teams.
In cases where targets are met, the process owner shall consider improving or
maintaining targets for the next period. However, if objectives and targets are not met,
improvements shall be carried out through the corrections and corrective actions by initiating
Corrective Action Request (CARs).
All LPGH & STC processes shall be documented and controlled to ensure compliance
to statutory and regulatory requirements related to the processes. While quality policy states
the overall intention and direction of the hospital, LPGH & STC’s Quality Objective and Plans
(QOP) serves as the criteria and method to ensure that both the operation and control of the
QMS processes are effective. Once achieved, it will signify that the process is working
effectively. Each unit in the organization is required to prepare their own QOP at the beginning
of the year which shall be reviewed by the QMR and shall be approved by the Medical Center
Chief.
The hospital review and improvement processes are essential for the continual
improvement of its quality management system. These processes enable LPGH & STC to
determine whether the QMS conforms to standard sets by ISO 9001:2015, the organization’s
quality objectives, statutory and regulatory requirements and assuring customer needs are met.
D. Financial Analysis
Regular Funds
Internally Generated Income

As shown in the statement above, there is a decrease of income for the years 2019 and
2021.
As shown in Hospital Income Statement of Cash Flow, it was noted that the Cash
Outflow for Operating Activities from Year 2018 to 2021 is larger than the Cash Inflow which
means that cash expenditures are higher than the cash savings. Total Cash provided by
Operating, Investing and Financing Activities for Year 2018 to 2021 is also negative, signifying
that the hospital is not generating enough cash for its overall operation.
E. IFE Matrix
IFE Matrix
Key Internal Factors
Weighted
Strengths Weight Rating
Score
Increase hospital capability in hiring additional
0.010 3 0.030
manpower pool in response to COVID pandemic.
Increase financial assistance from the National
Government in procurement of different medicines, 0.010 3 0.030
supplies and equipment during pandemic.
Prioritized special projects (vaccination, molecular
laboratory, modular quarantine facility) due to strong 0.050 4 0.200
legislative and political support.
The hospital has separate facility for quarantine mild and
0.020 3 0.060
moderate COVID Cases.
Admitted patients can avail the “No Balance Billing

0.050 4 0.200
Policy” mandated by DOH.
Use of Telemedicine/Telehealth (online check-up) in

providing health services in certain areas like OPD, 0.050 3 0.150
Dental and Rehabilitation Medicine.
Level III Hospital LTO/ISO 9001:2015 accreditation. 0.075 4 0.300
Acquisition of new lot and construction of additional 12-

0.070 4 0.280
storey building.
On-going construction of additional 12-storey building. 0.075 4 0.300
Increase in the number of clinical departments with

0.050 4 0.200
accredited residency training program.
Increase number of health service being offered. 0.075 4 0.300
Automation of support services like the accounting
0.020 3 0.060
system and the inventory system.
IFE Matrix
Key Internal Factors
Weaknesses Weight Rating Weighted
Score
There is still inadequate pool of nursing personnel because

of increase in number of resignation and inadequate 0.050 1 0.050
nursing applicant.
No in-house sleeping quarters for nurses and other HCW
0.010 2 0.020
once the Bayanihan package has lapsed.
Inadequate medicine, medical supplies and equipment due
0.075 1 0.075
to difficulties in the procurement process.
Diversion of resources to prioritized special projects
mandated by National Government at the expense of other 0.050 1 0.050
healthcare services.
Lack of communication on portal between the quarantine
facility and the main hospital either via internet or 0.010 2 0.020
telephone lines.
Delay in the processing of Philhealth claims because of
incomplete requirements and inadequate personnel,
0.020 2 0.040
unreimbursed claims become “Quantified Free Service” or
loss of the hospital.
Outdated digital infrastructure and inadequate manpower
0.050 1 0.050
to cope up with the demand.
Appointment system in OPD is still in need of refinement. 0.010 2 0.020
Decrease in the number of medical specialists playing an
0.075 1 0.075
active role in the management of patients.
Absence of private rooms to cater to private paying
patients of some of the medical consultants. Private 0.020 2 0.040
practice is still not allowed.
Some diagnostic procedures need to be sent out because of
0.075 1 0.075
unavailability of the equipment needed for the procedures.
TOTAL 1.00 2.625
F. Strategic Issues based on Internal Factors
 Limited resources because the hospital is reliant on the funds provided by the
government and from the financial support coming from legislators.
 Lack of employees both in the medical and non-medical unit due to increase of demand
abroad and limited applications.
 Lack of equipment including the basic and the high-end medical equipment.
 Outdated digital infrastructure and lack of automated systems for more effective and
efficient operation.
IV. STRATEGY FORMULATION
A. SWOT Matrix
SWOT MATRIX Internal Strengths: Internal Weaknesses:

S1: Increase hospital capability W1: Lack of effective
in hiring additional manpower. communication facility
S2: Increase financial W2: Outdated digital
assistance from the National infrastructure.
Government W3: Inadequate manpower
S3: Prioritized special projects W4: Lack of medical
such as vaccination, molecular equipment to address some
laboratory et al. diagnostic procedures.
S4: Offers wide range of health W5: Inadequate medicines,
services & clinical medical supplies &
departments. equipment
S5: Wide expansion site W6: Absence of private
S6: System automation of rooms
some support services W7: Diversion of resources
S7: Level III hospital with ISO to prioritized special
9001:2015 accreditation projects.
S8: No Balance Billing W8: Delay in processing of
Policy Philhealth claims
External Opportunities SO: WO:
O1: Strong executive & 1. Speed up hiring of 1. Invest in strong
legislative actions in additional manpower communication facility to
providing support. 2. Establish a well-planned improve information services
O2: Financial system to automate all 2. Emphasize the importance
assistance/pledges from services of specialized equipment to
other institutions and 3. Develop more tools for address send out of
agencies continual quality procedures
improvement
O3: Increase in National 4. Create bigger spaces to 3 Provide private rooms to

Budget Allocation and accommodate increasing paying patients to increase
manpower pool. patients income.
O4: Use of digitalization 5. Invite more medical 4. Enhance medical
in healthcare services practitioners to enhance assistance available to
O5: Collective internal services indigent patients
leadership & ensuing 6. Improved medical services 5.Focus on hiring additional
political shift. and assistance to patients manpower
O6: Creation of Malasakit 6.Prioritize disbursements for
Program important digital
infrastructure
External Threats ST: WT:
T1: Strict government 1.Prioritize hiring of vacant 1.Make sure expenditures
mandates positions esp. nurses & address priority projects for
T2: Compliance to Data doctors much needed equipment,
Privacy Act & DOH 2.Assure compliance to medicines & medical
requirements government requirements to supplies
T3: No assurance of avoid service disruption 2.HRMD to prioritize hiring
sustained support from the 3.Strict monitoring of of immediate vacancies
government available medicines and 3.Increase availability of
T4: Limited available equipment to assure continues rooms/wards to address
supply of medicines & supply & services increasing number of patients
medical equipment 4.Adhere to strict compliance 4.Develop partnership with
T5: Decreasing personnel in procurement of supplies medical schools to allow
due to resignation. and services to assure quality increased exposure of
T6: Complaints from and effectiveness training physicians
patients & nearby 5.Continue providing quality 5.Increase revenue through
community services to avoid complaints implementation of
T7: Risk of non-collection responsibility accounting
of receivables from system.
Philhealth 6.The hospital should focus
T8: Substitutes for more on income generation
medical care and use it for procurement of
T9: Subpar third-party equipment and improvement
services of facility that is not funded
by the GAA and SAA.
7. Hire additional personnel
through Contract of Service
while waiting for the hiring
process of regular
employees.
B. SPACE Matrix
AXIS
SUB-FACTORS SCORE AVERAGE VALUE
Industry Attractiveness
Growth Potential 4
Profit Potential 2
3.00
Rivalry of Competition 2
Growing demand for specialized medical services 4
Competitive Advantage
0.300
Market Share -2
Quality of Patient Care -2
Strategic Location and Accessibility -1 -2.40
High staff turnover -4
Well-equipped facilities and equipment -3
Financial Strength
Liquidity 4
Profitability 1
2.75
Cash Flow 4
Inventory Turn-over 2
Environment Stability
-0.875
Technological advancements in medical treatment
and diagnostics -4
Growing demand for specialized medical services -4 -4.50
Increasing government funding for healthcare -5
Changes in government regulations and policies -5
Total -0.575
The resulting Space Matrix graph places the hospital in the Competitive quadrant,
which suggests that it the industry is attractive but relatively unstable due to some
environmental factors such as changes in government regulations and policies which has a
great impact in funding and hospital operations. This indicates that the hospital should focus
on a strategy that will focus more on increasing its own hospital income and proper utilization.
Also, the hospital may revisit its administrative processes to reduce costs thus increasing
income.
C. Internal – External Matrix
LPGHSTC Internal-External (IE) Matrix

4.000
EFE Weighted Score
3.000
2.000
1.000
1 2 3 4
IFE Weighted Score
Analysis:
 The Internal-External (IE) Matrix is a strategic management tool that is used to
evaluate the strengths and weaknesses of an organization in relation to the
opportunities and threats in the external environment.
 The IE is a two-dimensional matrix with the x-axis representing the internal factors
of an organization, such as financial resources, technology, management capability,
and marketing strength. The y-axis represents the external factors such as industry
growth rate, competition, regulatory environment and demographic trends.
 The total weighted score of LPGH & STC in the EFE Matrix is 3.09 which means
the LPGHSTC highly responds to its key external factors. While, the IFE Matrix has
a total weighted score of 2.625 meaning that the LPGH & STC has an average
external position.
 The region where the LPGH & STC falls can be described as grow and build. This
suggests that the LPGHSTC may consider the following strategies: Intensive
(market penetration, market development, and product development) or integrative
(backward integration, forward integration, and horizontal integration).
D. GRAND Strategy Matrix
FUTURE MARKET GROWTH RATE: RAPID
Market growth rate refers to the growth potential of the market in which the hospital
operates. For a public hospital like LPGH & STC, this could be determined by factors such as
population growth, demographic trends, and the specific health conditions in the community.
 Philippine Statistics Authority’s statistical figures as of May 2020, shows
population growth rate of 2.95% (2015-2020) in the City of Las Piñas. As the
population grows, the demand for healthcare services also increases. This is because
an increase in the number of people means more individuals who may need
healthcare services.
 Based on Research and Markets, the Filipino healthcare provider sector had total
revenues of $17.8 billion in 2020, representing a compound annual growth rate of
10.3% between 2016 and 2020; and expected to grow to 11% by 2025.
 Philippine Statistics Authority’s report also shows that the country’s health
spending or Current Health Expenditure (CHE) reached Php 1.09 trillion in 2021,
18.5% higher compared with Php 917.15 billion posted in 2020. This increment was
faster than the 12.8% growth registered in the previous year.
COMPETITIVE POSITION: STRONG
Competitive position refers to how well the hospital is positioned relative to its
competitors in the market. In the case of LPGH & STC, this can be determined by factors such
as the quality of care the hospital provides and the ability to attract and retain healthcare
professionals.
 Considering the EFE score of 3.09 and IFE score of 2.625, we can conclude
LPGH & STC is able to respond to external threats and deal with its internal
weaknesses.
 The cost of healthcare services also impacts a hospital’s competitive position.
LPGH & STC being a public hospital, offers affordable services which can be
attractive to patients, particularly to those who are uninsured and those who belongs
to indigent communities.
Firms in Quadrant I represent an ideal position for a public hospital. It indicates that the
hospital is rapidly growing market and has strong competitive position. In this quadrant, LPGH
& STC can pursue variety of strategies such as expanding its facilities and services, investing
in new technologies and cost-effective management through responsibility accounting
implementation.
E. Summary of Strategies
Strategy I - Increase revenue through implementation of Responsibility Accounting System
Strategy II – Purchase equipment and upgrading of facility using Hospital Income with feasibility
study and cost benefit analysis.
Strategy III - Hiring of personnel through Contract of Service using Hospital Income
Strategy IV - Creation of Policy regarding Income Utilization
Strategy V - Develop partnership with medical schools to allow increased exposure of training
physicians.
Strategy VI - Provide private rooms to paying patients to increase income.
Strategy VII - Create bigger spaces to accommodate increasing patients.

F. Quantitative Strategic Planning Matrix

From the matrix above, strategy 1 to 4 has the highest Total Attractiveness Score,
therefore the group decided to go with these 4 strategies as our final recommendation.
V. STRATEGY PLAN
A. Vision and Mission
Vision
The leading multi-specialty healthcare facility and trauma center in the South
of Metro Manila by 2028.
Mission
Provide safe and excellent healthcare to our clients with the best standards of
teaching, training, and research.
B. Objectives (short term and long term)
1. Strategic
Short-term Objective
- To establish a standardized policy and procedure regarding hospital income generation
and utilization.
Long-term Objective
- To establish a system that will encourage employees to perform more to increase
hospital revenue and for the hospital to become a multi-specialty hospital with a
modernized facility and specialized equipment.
2. Financial
Short-term Objective
- To be able to procure equipment needed by the hospital that is not funded by DBM or
DOH, and to hire additional personnel without relying on the fund provided by the
government for operating expenses by focusing on hospital income generation and
utilization.
Long-term Objective
- To become self-sufficient, when the time comes and the government cannot support the
hospital operation, the hospital can pool its own fund to use for its operation.
C. Recommended Business Strategy
Strategy I – Increase Revenue through Implementation of Responsibility Accounting System
Through responsibility accounting implementation, we believe that it can encourage
employees, especially the department heads, to improve their unit’s performance. Each cost
center will have their own income statements wherein their monthly expenses and monthly
income are reflected; this financial result will be reported to the management during the
management review. From this report, the management can identify where the hospital is
spending its money, which units perform well, and which units are being left behind.
Strategy II – Purchase equipment and upgrading of facility using Hospital Income with
feasibility study and cost benefit analysis.
Due to the limited budget provided by the government, the hospital is constrained
from purchasing equipment needed for its operation. To supplement the deficiency of funds,
the hospital can use its generated income for purchasing of equipment and upgrading of
facility, but a thorough study is needed to avoid purchase of not needed equipment.
Unutilized equipment is an equipment purchased but cannot be use or utilize due to poor
strategic planning and from internal problems that is not foreseen before purchase it, like
unpreparedness of the place where the equipment is to be install, untrained personnel or
unavailability of consumables needed to run the equipment. To avoid this incidence and to
properly allocate the limited resources of the hospital and to help the management with the
prioritization of the projects, we recommend that a request for purchase of equipment should
be supported by feasibility study or cost benefit analysis. This analysis can show the
preparedness of the requesting unit and the projected benefits that the hospital can gain from
purchasing the product. The management can prioritize equipment with the highest benefit
and the most time efficient among other requests.
Strategy III – Hiring of personnel through Contract of Service using the Income generated by
each cost centers.
Due to the intensive hiring process and the strict qualification in the government to
have a plantilla position, only a few applicants are expressing their interest to enter the
hospital. While the hospital is still waiting for qualified applicants, the management may
allow cost center to hire Contract of Service to fill up the inadequacy of personnel in their
respective unit, but it will be charged against their generated income. Request for Contract
of Service should also be supported by justification and the cost benefit analysis including
the fund needed and where it will be sorted out. This analysis can help the management to
decide whether to approve it or not, this can also avoid request for unreasonable number of
personnel not included in plantilla position.

Strategy IV - Creation of Policy regarding Income Utilization
Aside from the funds given by the government, the hospital can use its income as an
alternative source for its operation, but a standardized policy is needed to ensure compliance
and accountability of the personnel involved in utilization. We therefore recommend that
the hospital should create a policy regarding the utilization of Hospital Income and that the
hospital should focus more on Income generation.
The management can also limit the use of its General Appropriation Act Fund and
the Sub-Allotments for non-income generating unit such as Finance, HOPPS, Office of the
MCC and etc., for creation of additional services, for purchase of new equipment and for
implementation of priority projects mandated by the government. While income generating
units should use their income for upgrading or replacement of their existing equipment and
for hiring of additional personnel through Contract of Service.
This policy can resolve the issue of limited resources, including lack of equipment
and lack of personnel. This can also encourage cost centers to improve their performance to
increase their income and to monitor their spending to decrease expenses. And hopefully
this policy can set directions for the cost centers on their vision for their respective unit
because they will be given an active role on utilization of their income, they can decide what
to buy or where to put it but still with the approval of the management.
D. Corporate Social Responsibility
Corporate Social Responsibility (CSR) refers to a company's commitment to operating
in an economically, socially, and environmentally sustainable manner. For a hospital like the
LPGH & STC, this means actively engaging in efforts to benefit its patients, employees, the
community, and the environment.
LPGH & STC since then is taking a lot of initiatives to be of service to people. It has
been its commitment to help and provide quality services and enable it to address social issues
that are beyond the scope of its core operations. In doing so, it has helped a lot to attract patients
and employees who are looking for healthcare providers, that LPGH & STC is socially
responsible and care about the well-being of their communities. This also helps to improve its
reputation in the eyes of the community, patients, and employees as well. Below are some of
the different initiatives that LPGH & STC are doing to promote and strengthen the welfare and
wellbeing of its clients as well as to fulfill its obligations to the society:
 Providing quality healthcare:
The primary responsibility of a hospital is to provide quality healthcare services
to its patients. LPGH & STC, being and ISO 9001:2015 accredited hospital, is
equipped with modern medical equipment and has an operating room complex that is
equipped with the latest surgical equipment and technology. It provides continuous
trainings and seminars to both medical and non-medical staff, and strictly adheres to
safety protocols.
 Providing community outreach:
In addition to its medical services and facilities, LPGH & STC is also committed
to community outreach programs. The hospital conducts health education programs,
wellness events, and medical missions to underserved communities in the city and its
neighboring areas.
 Environmental sustainability:
LPGH & STC helps the environment by implementing eco-friendly practices
such as reducing plastic waste and waste segregation program as well as participate in
energy conservation. It provides a safe and healthy environment to all its employees
and clients by implementing a No Smoking Policy inside the hospital premises and
within 100 meters from any point of the perimeter of the hospital.
 Employee wellbeing:
LPGH & STC support its employees' health and wellbeing through initiatives
such as mental health programs and free annual general check-up.
 Ethical practices:
LPGH & STC ensures ethical practices are being followed by adopting
transparent business practices, avoiding conflicts of interest, and ensuring compliance
with regulations and guidelines.
By undertaking these and other CSR initiatives, LPGH and STC clearly demonstrates
its commitment to serving their patients, employees, and the community in a responsible and
sustainable manner.
E. Financial Projections
F. Supporting Functional Strategies
1. Hospital Operation and Patient Support Services
The Hospital Operation and Patient Support Services or the Administrative
Service is composed of different units that plays a major part in the implementation of
the strategies stated above and the achievement of the hospital objectives such as:
1. Procurement – they are responsible for the collation of purchase request and project
procurement management plan (PPMP) from the end users, preparation of the annual
procurement management plan, announcement and publication of bids, preparation
of purchase order and in collaboration with Bids and Awards Committee (BAC)
during the conduct of bidding, awarding and preparation of contracts.
2. Human Resource – they are responsible for the recruitment and processing of
applications, preparation of payroll for salaries and wages and benefits, orientation
of staff and maintenance of personnel records.
3. Material Management – they are the one assigned for requisition of supplies,
inventory management, acceptance of delivery and issuance of supplies and
equipment.
4. Engineering and Maintenance – they are the ones who monitor and maintain the
operation of the hospital facility and its equipment.
2. Finance
The Finance Division will be the one who will implement the Responsibility
Accounting System. They will be the ones who will collect and collate all the data needed
for the preparation of the financial reports. They will determine the flow of the
transaction, who will be the responsible personnel and from what source the data will be
collected. The Finance Division is composed of different units that will play an active
role in the delivery of the objective stated above such as:
1. Accounting – Responsible for disbursement of funds, Preparation of Financial
Reports and monitoring of the income and expenses of each cost center.
2. Budget – Monitoring, allocation, and obligation of the budget (GAA, SAA, and
Hospital Income) and the preparation of budget report.
3. Billing of Claims – Preparation of Patients statement of Account, filing of claims and
monitoring of the payment of claims.
4. Cashier Operation – Receiving of payments, payment of claims and remittances,
preparation of cash reports, issuance of official receipts and collection of income.
3. Personnel
An important resource of the organization is its personnel; therefore, the competence
of the hospital employees shall be developed to meet the high expectation of the job. The
hiring and the selection process shall ensure that the employees hired will meet the
minimum requirements of the Civil Service Commission and Department of Health, as
specified in the Qualification Standards and the competency requirements of the position.
4. Integrated Hospital Operation and Management Program (iHOMP)
The iHOMP or the IT department are the ones responsible for the operation and
maintenance of the Hospital Information System, preventive maintenance, and repair of
all IT equipment.
VI. IMPLEMENTATION AND CONTROL
A. The Balanced Scorecard
Objective Goals Indicators Initiatives
Increase Revenue Implementation of
and dependency 15% annual Financial responsibility

Financial
from Financial increase in Statements and accounting system
Perspective
Support coming Hospital Income Budget report and focusing on
from legislators income generation
Acquisition of
80% Excellent Monthly Client equipment not
Customer Improvement of Overall Rating as Experience funded by the GAA
Perspective services mandated by Survey (CES) and hiring of
DOH Report additional
personnel
Utilization of
Internal Standardized policy Approved and Creation of policy
hospital income
Process for utilization of documented regarding hospital
based on
Perspective hospital income policy income utilization
approved policy
At least 25% of
hospital income
Monitoring
shall be used to Improvement of
Learning Modernization of report of
purchased & hospital facility and
and Growth facility and procured and
upgrade Hospital modernization of
Perspective equipment delivered
Equipment hospital equipment
equipment
(Treasury Office
Order # 15-2003)
B. Contingency Planning
Contingency planning is a critical component of strategic management for hospitals, as
it helps them to prepare for unexpected events and minimize the impact of emergencies on
patient care. It involves identifying potential risks, developing a plan to mitigate those risks,
and defining roles and responsibilities for hospital staff to ensure effective implementation of
the plan. Hospitals are vulnerable to a wide range of risks such as natural disasters, pandemics,
power outages, and cyberattacks, which can disrupt operations and compromise patient safety.
Therefore, having a well-designed contingency plan is essential to ensure that hospitals can
continue to provide critical care services in the face of adversity.
The LPGH & STC has been implementing its own procedures and protocols to ensure
that the hospital can continue to operate in the event of an emergency or unforeseen
circumstance. Its goal is to minimize disruptions to patient care and ensure that critical services
can continue to be provided.
Here are some of its contingency plans in response to disasters and unexpected events:
Emergency Preparedness
LPGH & STC has been conducting seminars and trainings for disaster
preparedness such as earthquakes, fire brigade and prevention, as well as seminars on
safety protocols about the Covid 19 infection.

Communication protocols
The hospital sees to it that there is a clear communication protocols to ensure
that staff, patients, and families are kept informed of emergency situations and can
communicate with each other in a timely and effective manner.
Staffing and resource allocation
LPGH and STC identifies the staffing and resource needs required to maintain
critical services during an emergency, including the allocation of medical supplies,
equipment, and personnel.
Patient care and transfer
In the event of an emergency, where there is a need to transfer patients to other
facilities. LPGH and STC has an outline of procedures for patient transfer and
continuity of care.
Security protocols
One of LPGH and STC’s contingency plan includes security protocols to ensure
the safety of patients, staff, and visitors during an emergency.
It is likewise important for the hospital’s management team to review and update the
contingency plans regularly in order to ensure that it remains relevant and effective. This may
include conducting drills and exercises to test the plan and identify areas for improvement.
By having a contingency plan in place, a hospital can ensure that it is prepared for
unexpected events and can continue to provide critical care services to patients even in the face
of adversity.

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A STRATEGIC MANAGEMENT PAPER OF

LAS PIÑAS GENERAL HOSPITAL AND SATELLITE TRAUMA CENTER

In Partial Fulfillment of the requirements for the subject

Corpuz, Chris Gina Marie D.

Professor Alejandro Bautista, MBA

stakeholders, including hospital staff, and patients as well.

hospital's strategic plan focuses on improving patient experience, increasing operational

be implemented to achieve these objectives.

strengths and weaknesses.

face significant challenges such as inadequate manpower, lack of effective communication

To address these challenges, we recommend that the hospital implements a

Responsibility Accounting System to improve every unit’s performance in terms of income

equipment, promote savings and increase income generation.

Another recommendation is the immediate hiring of personnel through Contract of

Service to fill up the inadequacy of manpower in various departments. It must be supported

also by a justification and cost benefit analysis to avoid unreasonable requests.

We also recommend that the hospital invests in developing a robust digital

coordination and communication across the continuum of care.

enhanced patient experience, increased operational efficiency, and promote self-reliance.

II. EXTERNAL ENVIRONMENT ANALYSIS

B. Immediate industry and competitive environment (Porter’s Analysis)

C. Threats and Opportunities 20

E. Strategic Issues based on External Factors 24

III. INTERNAL ENVIRONMENT ANALYSIS

A. Company Resources and Capabilities 24

C. Value Chain Analysis 34

F. Strategic Issues based on Internal Factors 45

IV. STRATEGY FORMULATION

C. Internal – External Matrix 49

D. GRAND Strategy Matrix 50

F. Quantitative Strategic Planning Matrix 53

A. Vision and Mission 55

B. Objectives (short term and long term) 55

C. Recommended Business Strategy 56

D. Corporate Social Responsibility 58

F. Supporting Functional Strategies

VI. IMPLEMENTATION AND CONTROL

A. The Balanced Scorecard 65

right to express our gratitude to the following:

and strength to finish this paper.

To Dra. Estrellita Bautista, our beloved site coordinator and to

Professor Alejandro “Jhay” Bautista, our Strategic Management Professor,

for the never-ending guidance and support.

process of making this strategic management paper.

for the hard work and cooperation in completing this paper.

Strategic management is a term that implies a continuing process of a development plan,

implementation, and evaluation. It is a broader concept of a strategic planning which is an

acquisition/purchase of equipment as well as hiring of additional Contract of Service (COS) by

decisions in response to evolving internal and external needs.

of Health (DOH), Region 4, Province of Rizal.

hospital to a general hospital.

Development-Metro Manila (DOH-CHD-MM) Integrated District Health Center. The system

within a span of five years.

II. EXTERNAL ENVIRONMENT ANALYSIS

EXTERNAL OPPORTUNITIES EXTERNAL THREAT

Strong Legislative Support both Top Management Leadership

affect the implementation of the directions due to change in the