THIRD QUARTER:
Volume 4, Number 3
Aug – Oct 2009
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Improving Operations Management to Achieve Strategic Objectives for Hospitals, Medical Clinics and Private Practices
By: Asst. Professor Gregory O. Ginn; PhD, MBA, CPA, M.Ed, CMP™ [Hon]
Department of Healthcare Policy and Administration
University of Nevada
By: Assoc. Professor Hope Rachel Hetico; RN, MHA, CPHQ, CMP™
Institute of Medical Business Advisors, Inc.
Managing Editor
Introduction
Since the middle of the 1980s, hospitals have operated in an extremely competitive environment. During this period, hospitals have been under increasing pressure to improve quality and reduce costs. Further, healthcare has come to be viewed as less of a human service and more of a commercial service; especially as new political and communication trends open up different approaches to medicine as 2010 approaches. In responding to this dynamic situation, healthcare managers and CXOs have adopted management techniques from other industries in an effort to improve quality and reduce costs. Perhaps this transfer of ideas is most apparent in the functional area of operations management that traditionally deals with facility location, capacity, supply chain management, inventory systems, scheduling, layout, and quality management. And now, the health 2.0 transformation in participatory medicine is upon us.
This chapter examines the leading trends, and then reviews some of the most promising avenues for improving hospital operations, including data management, process management, patient empowerment and the development of human resources. It also highlights the importance of non-economic performance measures. The goal is to present emerging managerial concepts and trends that show how hospitals ad private medical practices can use operations management to improve their competitiveness by exhibiting greater flexibility and higher quality, and as a result achieve better financial performance.
CHAPTER TABLE OF CONTENTS
A. Competitive Trends
1 Patient-Focused Healthcare
a. Rise of Participatory Health 1.0, 2.0 and 3.0
b. Connected Medical Homes
c. Emergence of Consumer Orientated Websites
2. Implementation of the Deficit Reduction Act of 2005
3. Identification of “Never-Events”
4. Pay-for-Performance Initiatives
a. Direct Reimbursement Payments
5. Hierarchical Condition Category Management
6. Consumer-Directed Healthcare Plans
a. Health and Medical Savings Account Premiums for 2009
7. Telehealth and Internet Medicine
8. Hospital, Clinic, and Physician Pricing Transparency
9. Evidenced-Based Medicine
a. Comparative Medical Effectiveness
10. Rise of Retail and Convenient Care Centers
11. Alternative and Complementary Medicine
12. Development of Social Health Management Organizations
13. Use of Hospitalists (Hospital-Based Medical Groups) and On-Site Medical Group Staffing
14. Growth of Boutique (Concierge) Medicine
15. Government-Enabled Patient Bounty Hunters
16. Health Information Technology
17. Community Benefit Laws
B Information and Analysis
1. Length-of-Stay Forecasting
2. Collaboration among Organizations
3. Measures of Performance and Six-Sigma
C. Process Management
1. Cost Management, Medical Activity-Based Costing & Economic Order Quantity Cost Analysis
2. Information Technology Management
a. CCHIT and eHRs
3. Supply-Chain Management
4. Operations Management
5. Scheduling (Access) Management
D. Human Resources Development
1. Employee Development
2. Hospital Personnel, Physician Recruitment, and Professional Employer Organizations
3. Cultural Transformations
E. Strategic Planning
1. Capacity Workforce Management
2. Accounting Management
F. Leadership Development
1. Operations Management
2. Decision-making and Communications Management
3. Next Generation Physician and Executive Leadership
G. Conclusion
Case Models
Jude and the Surgi-Packs
Jude and Hospital Community Benefit
Checklists
Checklist 1: Competitive Trends
Checklist 2: Information Analysis
Checklist 3: Process Management
Checklist 4: Human Resources
Checklist 5: Strategic Planning
Checklist 6: Leadership
Appendices
Appendix 1: List of Physician Recruitment Agencies
Appendix 2: IRS FORM 13790 Tax Exempt Hospitals
TABLE OF CONTENTS.pdf