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ISE 491 Healthcare Process Improvement

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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  1. ISE 491 Healthcare Process Improvement

  2. Outline Overview of Healthcare Management Historical Background Nature of Healthcare Services Decision Making Process Model Healthcare Manager & Responsibilities Distinctive Characteristics of Healthcare Services 2009

  3. 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

  4. Management Decisions • Healthcare Management Requires Decisions in: • Forecasting • Capacity planning • Staffing & Scheduling • Managing medical supplies • Quality Control • Motivating employees • And more . . . 2009

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

  10. Inputs Processing Outputs Doctors, nurses Examination Healthy patients Hospital Surgery Medical Supplies Monitoring Equipment Medication Laboratories Therapy The Healthcare Process is: 2009

  11. 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

  12. Who is the Healthcare Manager? • Upper Level • CEO? • COO? • CFO? • CNO? • Operational Decisions Mid-Level Manager • Strategic Decisions: Upper-Level Managers and Executives 2009

  13. 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

  14. 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

  15. 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

  16. The End 2009

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