Transcript Chapter 10

Health Care Processes
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Have a perspective on the unique operations
and supply management (OSM) challenges
faced in health care.
Understand how selected OSM concepts and
approaches can be applied to hospitals.
Understand important health care
terminology as it relates to OSM decisions.
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Health care operations management: the design,
management, and improvement of the system
that deliver health care services
Health care as a service
◦ Extensive customer contact
◦ Wide variety of providers
◦ Life or death as outcomes
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Key focus is on hospitals
◦ Hospital: a facility whose staff provides services relating
to observation, diagnosis, and treatment of patients
LO 1
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Key operators are highly trained professionals
◦ Generate requests for service
◦ Deliver the service
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Relationship between prices and performance is
not direct
No single line of command
◦ Balance of power between groups
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Product specifications are often subjective and
vague
Not a commodity that can be stocked
◦ Resource-oriented service organization
LO 1
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General hospital/emergency room
Specialty
Psychiatric
Rehabilitation
(American Hospital Association classification)
LO 1
LO 1
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The layout sets the physical constraints on
operations
The goal of layout is to move patients and
resources to minimize wait and transport
time
A general rule is to separate patient and
guest traffic from staff traffic
Principal element is the nursing station
Flow of work through a hospital is called a
care chain
LO 2
LO 2
LO 2
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A major distinction among health care
processes is the extent to which resources
can be scheduled efficiently
Emergency situation must be dealt with
immediately
◦ Inherently inefficient
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Elective procedures can be scheduled to
achieve efficient use of resources
LO 2
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Resource use and schedule complexity are
effected by:
◦ The number of steps
◦ The time of each step
◦ Whether the care chain has a definite end
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Complexity is also increased by:
◦ The need for rapid diagnostics
◦ Extensive consultation
◦ The need to work with other specialties
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Decoupling points: steps in the process where
waiting takes place
LO 2
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Radio frequency identification: uses
electronic tags that can store, send, and
receive data over wireless frequencies
Used to track the location of:
◦ Patients
◦ Medical staff
◦ Physical assets
LO 3
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Patient flow
◦ Improvement of patient check-in process
◦ Tighter links between patient and medical records
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Physical assets
◦ Pinpoint location of equipment
◦ Save time rounding up equipment
LO 2
Capacity planning: matching an organization’s
resources to demand
Resource requirements is a function of:
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1. Number of patients
2. Length of stay
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LO 2
Capacity is measured in terms of multiple
resources including
Beds
Clinics
Treatment rooms
Doctors
Nurses
And more
Starting point is determining the effective
capacity of a resource
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Effective capacity = Design capacity X Utilization
Subsequent steps:
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LO 2
Forecasting patient demand
Translating this demand into capacity requirements
Determining the current capacity level
Calculating the gap between demand and capacity
Developing a strategy to close the gap
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Nurse shift scheduling
◦ Largest component of hospital workforce
◦ Schedules can be classified as either:
◦ Cyclical schedule
 The work is planned for four-to-six weeks
 Nurses work a fixed schedule
◦ Flexible schedule
 Several types are used
 Most common is 8-hour days and an average of 40 hours
per week
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Operating room scheduling
◦ Typically largest revenue-generating center
LO 2
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TQM approaches have been used for decades
◦ Hospitals are well suited because so much of health
care involves precise measurements
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Six Sigma and Lean concepts are being
instituted in may hospitals
LO 2
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Gap errors: information mistakes that arise when
a task is transferred between people
◦ Handoffs are a significant source of serious patient harm
◦ One successful approach to managing handoffs is a
checklist technique for communicating information
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Bottleneck: part of the system that has the
smallest capacity
◦ Frequently result from departments optimizing their own
throughput
LO 3
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Hospitals have been raising their level of
customer service
Improved customer service saves money
◦ Fewer malpractice suits
◦ Reduction in no-shows
◦ Lower nurse turnover
LO 2
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Computerized physician order entry (CPOE)
systems are widely used for prescriptions
Experts propose broadening their application
to include scheduling all resources needed to
treat patients
The admission order triggers a series of
follow-up events that are automatically
entered into the system
LO 2
Average inventory for a medium size hospital is
$3.5 million
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Represents
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5-15 percent of current assets
2-4 percent of total assets
Largest working capital requirement
Hospital inventory systems can be broken down
into two categories
1. Push systems
1. Fixed-order quantity systems
2. Fixed-time-period systems
2. Pull systems
LO 2
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A major distinction between health care inventory
management and other businesses is safety stock
The standard calculation of safety stock is based
on trading off the cost of carrying additional
inventory with the cost of being out of stock
This is much trickier in a hospital when the cost
of a stockout might be death
For critical items, backup contingency plans such
as borrowing from a nearby hospital are often
developed
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LO 3
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Evidence-based medicine (EBM)
Integrated medical care
Electronic medical records
Health information exchanges (HIE)
Computer-assisted diagnostics
Remote diagnostics
Robots
LO 3