Strategic management is the the process by which a business forms its strategy for accomplishing its missions and goals. In today’s fast paced and ever changing world, strategic managers must be able constantly adapt strategies and goals due to host of factors including changes in technology and policy (Kaminski). In the health care field, strategies, missions and goals must be adapted to conform to changes in healthcare practices, medicine, new diseases and outbreaks, insurance policies and other healthcare related  politics. In order to continue to provide excellent health care services to patients, strategic management plans must constantly be revisited and revised by strategic managers to ensure the company is effectively working towards and meeting its mission and goals.

The healthcare setting, be it a hospital or private clinic, is like any other business. It provides a service to its patients (customers) in return for payment. In return, the customer expects a certain level and quality of service. In order to continue to provide excellent service for its patients, a business strategy plan must be set and implemented. One of the most obvious places where strategic management is necessary in a healthcare office is in billing. Patients who arrive will have varying ways of paying for services. Insurance coverage must be confirmed and procedures must be properly billed. If a healthcare provider fails to get paid, they will no longer be able to provide quality service.

Gap analysis is another important component of strategic management in the healthcare setting. Gap analysis is the analyzing of the gap between where a business currently stands and its goal. Creating a strategy is an important step in the process of realizing business goals. If a healthcare provider wishes to treat more patients and offer more services, for example, it must plan a strategy for reaching that goal. Steps that are needed may include purchasing equipment, proper licensing and special employee training.