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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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Presentation Transcript
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

slide4

Management Decisions

  • Healthcare Management Requires Decisions in:
    • Forecasting
    • Capacity planning
    • Staffing & Scheduling
    • Managing medical supplies
    • Quality Control
    • Motivating employees
    • And more . . .

2009

slide5

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

slide8

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

slide9

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

slide10

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

slide13

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

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