Ise 491 healthcare process improvement
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ISE 491 Healthcare Process Improvement. Outline. Overview of Healthcare Management Historical Background Nature of Healthcare Services Decision Making Process Model Healthcare Manager & Responsibilities Distinctive Characteristics of Healthcare Services.

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ISE 491 Healthcare Process Improvement

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Ise 491 healthcare process improvement

ISE 491 Healthcare Process Improvement


Outline

Outline

Overview of Healthcare Management

Historical Background

Nature of Healthcare Services

Decision Making

Process Model

Healthcare Manager & Responsibilities

Distinctive Characteristics of Healthcare Services

2009


Healthcare management is

Healthcare Management is...

  • The management of processes or health systems that provide care to patients.

  • The use of decision tools to manage and improve processes.

2009


Ise 491 healthcare process improvement

Management Decisions

  • Healthcare Management Requires Decisions in:

    • Forecasting

    • Capacity planning

    • Staffing & Scheduling

    • Managing medical supplies

    • Quality Control

    • Motivating employees

    • And more . . .

2009


Ise 491 healthcare process improvement

Historical Background / Development of Decision Techniques

  • Scientific Management Techniques (1910s) –

    • Frederic W. Taylor: work/labor - observe, measure, analyze, improve

    • Taylor known as the Father of Scientific Management

  • Standardization – Frank & Lillian Gilbreth

  • Psychological Effects of Work Conditions – Henry Gannt

  • Quantitative Inventory Management (1915) – F.W. Harris

  • Quality Control & Sampling (1930s) – W. Shewhart

  • Operations Research/Management Science (1950s)

    Linear Programming, Queuing Models

  • Management Information Systems (1970s)

  • TQM/CQI (1980s)

  • Supply Chain Management, Reengineering (1990s)

  • 2009


    Nature of the healthcare industry 1

    Nature of the Healthcare Industry 1

    • Combines medical technology and human touch, administers care around the clock from newborns to critically ill

    • More than 580,000 establishments make up the health services industry

    • Nearly 77% of all health services establishments are offices of physicians, dentists, or other health care practitioners.

    • Hospitals constitute 1.3 percent of all health service establishments, but they employ 34.8% of all health workers.

    Source: U.S. Department of Labor Bureau of Labor statistics (2006), www.bls.gov/oco/cg/cgs035.htm#nature

    2009


    Nature of the healthcare industry 2

    Nature of the Healthcare Industry 2

    Source: U.S. Department of Labor Bureau of Labor statistics (2006), www.bls.gov/oco/cg/cgs035.htm#nature

    • The largest industry in 2006, health care provides 13.6 million jobs for wage and salary workers and about 438,000 jobs for the self-employed.

    • 7 of the 20 fastest growing occupations are health care related.

    • Health care will generate 3 million new wage and salary jobs between 2006 and 2016, more than any other industry.

    • Most workers have jobs that require less than 4 years of college education, but health diagnosing and treating practitioners are among the most educated workers. .

    2009


    Ise 491 healthcare process improvement

    Table 1.2 Distribution of Health Providers and Health Workers in Health Services: in 2006, and Expected Growth

    Source: U.S. Department of Labor (2006) www.bls.gov/oco/cg/cgs035.htm#nature.

    2009


    Ise 491 healthcare process improvement

    Value added

    Inputs

    Outputs

    Transformation/

    Land

    Conversion

    Labor

    Services

    process

    Capital

    Feedback

    Control

    Feedback

    Feedback

    Transformation of Poor Health to Good Health

    Sick

    patient

    Treated

    patient

    The essence of healthcare operations is to add value.

    Look at thedifference between the cost of inputs and the value of outputs

    2009


    Ise 491 healthcare process improvement

    Inputs

    Processing

    Outputs

    Doctors, nurses

    Examination

    Healthy patients

    Hospital

    Surgery

    Medical Supplies

    Monitoring

    Equipment

    Medication

    Laboratories

    Therapy

    The Healthcare Process is:

    2009


    Decision making is the key

    Decision Making is the Key…

    There are two groups of decisions:

    • System Design-- capacity, location, departmental arrangements, product and service planning, acquisition and placement of equipment

    • System Operations-- personnel, inventory, scheduling, product management, and quality measurement and assurance

    2009


    Who is the healthcare manager

    Who is the Healthcare Manager?

    • Upper Level

      • CEO?

      • COO?

      • CFO?

      • CNO?

    • Operational Decisions Mid-Level Manager

    • Strategic Decisions: Upper-Level Managers and Executives

    2009


    Ise 491 healthcare process improvement

    Decision Hierarchy

    Broad Scope:

    Product Selection

    New Construction

    Location Decisions

    Technology Choices

    Strategic

    Moderate Scope:

    Staffing levels

    Supply Chain

    Equipment Selection

    Financial Resource Allocation

    Tactical

    Narrow Scope:

    Scheduling

    Controlling Quality

    Inventory Replenishment

    Operational

    2009


    Employment potential for healthcare managers

    Employment Potential for Healthcare Managers

    Table 1.3. Health Services by Occupation in 2006, and Projected Growth.

    Source: U.S. Department of Labor (2006) www.bls.gov/oco/cg/cgs035.htm#nature.

    2009


    Distinctive characteristics of healthcare services

    Distinctive Characteristics of Healthcare Services

    • Patient is a participant in the process (the patient’s condition is both the input and the output)

    • Production and consumption occur simultaneously (poor care cannot be recalled)

    • Perishable capacity

      • Site selection is dictated by patient location

      • Capacity is labor intensive

      • Example: operating rooms staffed but not used

    • Intangible nature of healthcare outputs (patient opinions about service quality are formed over time)

    • Heterogeneous nature of healthcare requires a high level of judgment

    2009


    Ise 491 healthcare process improvement

    The End

    2009


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