Technological evolution in a healthcare industry drives the need for healthcare organizations to adapt and constantly research for improvements. An organization may change its strategies because of the availability or lack of adequate technological capabilities. Outpatient Diagnostic Center is a healthcare organization that performs lab tests, medical imaging tests and other diagnostic radiology services such as X-rays and nuclear medicine testing. Technological forces are critical in strategic management because they create a problem-solving invention (Hunger, Wheelen, Hoffman & Bamford, 2015). With advanced technology, a healthcare organization can provide quality care at reduced costs, maintain patients’ loyalty and improve its performance.
Technological forces that might affect an Outpatient Diagnostic Center include research and development activities, technological incentives, automation and rate of technological change. Current trends in the Information technology influence changes in the organization’s strategic management. For instance, the growing need to improve patient care may influence the organization to adopt an electronic health record and electronic billing system. The use of EHRs technology facilitates sharing of patient’s information, and reduces delays in treatment and duplication of tests (Ginter, Duncan & Swayne, 2013). Similarly, the system reduces medical error incidences by improving the accuracy of disseminating medical records. Technology influences decision making in strategic management. The need to adapt quick changes, reduce costs and redefine organization’s values may prompt the organization to outsource information technology.
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2013). Strategic management of health care organizations. San Francisco, CA: Jossey-Bass, Wiley.
Hunger, J. D., Wheelen, T. L., Hoffman, A. N., & Bamford, C. E. (2015). Strategic Management and Business Policy (14th ed.). Upper Saddle River, NJ: Pearson Education.
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