Healthcare Operations Management, Third Edition

by Daniel McLaughlin

Overview

Student Resources (click here for access)

Instructor Resources: This book's Instructor Resources include PowerPoint slides, an updated test bank, teaching notes for the end-of-chapter exercises, Excel files and cases for selected chapters, and new case studies, for most chapters, with accompanying teaching notes. The new case studies are 1-3 pages each and are suitable for one class session or an online learning module.

The answers to many of the dilemmas faced by the US healthcare system, such as increasing costs, inadequate access, and uneven quality, lie in organizational operations – the nuts and bolts of healthcare delivery. Leading healthcare organizations have begun to employ the programs, techniques, and tools of operations improvement that industries outside of healthcare have successfully used for decades.

Healthcare Operations Management aims to help healthcare management students and working professionals find ways to improve the delivery of healthcare, with its complex web of patients, providers, reimbursement systems, physician relations, workforce challenges, and intensive government regulation. Taking an integrated approach, the book puts the tools and techniques of operations improvement into the context of healthcare so that readers learn how to increase the effectiveness and efficiency of tomorrow's healthcare system.

Thoroughly revised and updated, this edition includes:

A new chapter on big data and analytics for fact-based decision making More Excel examples to demonstrate the use of this prime analytics tool New case studies and exercises Expanded information on innovation and new approaches to care delivery

With its plentiful examples, guidelines to software tools, and emphasis on contemporary healthcare management issues, this book provides current and future healthcare professionals alike with a broad foundation for implementing operational improvements in their organizations.

Product Details

ISBN-13:	9781567938517
Publisher:	Health Administration Press
Publication date:	03/01/2017
Series:	AUPHA/HAP Book
Edition description:	None
Pages:	456
Product dimensions:	7.20(w) x 10.20(h) x 1.10(d)

About the Author

Daniel B. McLaughlin is the director of the Center for Health and Medical Affairs in the Opus College of Business at the University of St. Thomas, Minneapolis, Minnesota. Previously, he was the executive director of the National Institute of Health Policy at St. Thomas, the CEO of Hennepin County Medical Center, and the director of a county health system.

Table of Contents

Preface xv

Part I Introduction to Healthcare Operations 1

1 The Challenge and the Opportunity 3

Overview 3

Purpose of This Book 4

The Challenge 5

The Opportunity 6

A Systems Look at Healthcare 8

An Integrating Framework for Operations Management in Healthcare 12

Conclusion 15

Discussion Questions 15

2 History of Performance Improvement 17

Operations Management in Action 17

Overview 18

Background 18

Knowledge-Based Management 19

History of Scientific Management 21

Quality 27

Service Typologies 38

Supply Chain Management 39

Conclusion 41

Discussion Questions 41

3 Evidence-Based Medicine and Value-Based Purchasing 43

Operations Management in Action 43

Overview 44

Evidence-Based Medicine 45

Tools to Expand the Use of EBM 52

Clinical Decision Support 58

The Future of Evidence-Based Medicine 60

Vincent Valley Hospital and Health System and P4P 61

Conclusion 62

Discussion Questions 62

Part II Setting Goals and Executing Strategy 63

4 Strategy and the Balanced Scorecard 65

Operations Management in Action 65

Overview 66

Moving Strategy to Execution 66

The Balanced Scorecard in Healthcare 70

Linking Balanced Scorecard Measures to Strategy 80

Implementation of the Balanced Scorecard 85

Ensuring That the Balanced Scorecard Works 86

Business Intelligence 89

Conclusion 90

Discussion Questions 90

Chapter Exercises 92

Case Study: St. Mary's/Duluth Clinic 92

Notes 94

Further Reading 94

5 Project Management 95

Operations Management in Action 95

Overview 95

Definition of a Project 97

Project Selection and Chartering 98

Project Scope and Work Breakdown 105

Scheduling 109

Project Control 114

Communications 118

Risk Management 119

Quality Management, Procurement, the Project Management Office, and Project Closure 121

Agile Project Management 124

The Project Manager and Project Team 125

Conclusion 128

Discussion Questions 128

Chapter Exercises 128

Further Reading 129

Part III Performance Improvement Tools, Techniques, and Programs 131

6 Tools for Problem Solving and Decision Making 133

Operations Management in Action 133

Overview 133

Decision-Making Framework 134

Mapping Techniques 137

Problem Identification Tools 143

Analytical Tools 151

Implementation: Force Field Analysis 160

Conclusion 162

Discussion Questions 162

Chapter Exercises 162

7 Statistical Thinking and Statistical Problem Solving 165

Operations Management in Action 165

Statistical Thinking in Healthcare 166

Foundations of Data Analysis 167

Graphic Tools 168

Mathematic Descriptions 173

Probability 176

Confidence Intervals and Hypothesis Testing 184

Simple Linear Regression 191

Conclusion 197

Discussion Questions 198

Chapter Exercises 198

8 Quality Management: Focus on Six Sigma 201

Operations Management in Action 201

Overview 202

Defining Quality 203

Cost of Quality 204

Quality Programs 206

Six Sigma 208

Additional Quality Tools 222

Riverview Clinic Six Sigma Generic Drug Project 227

Conclusion 230

Discussion Questions 230

Chapter Exercises 232

9 The Lean Enterprise 235

Operations Management in Action 235

Overview 236

What Is Lean? 236

Types of Waste 238

Kaizen 239

Value Stream Mapping 240

Measures and Tools 242

The Merger of Lean and Six Sigma Programs 255

Discussion Questions 257

Chapter Exercises 257

10 Simulation 259

Operations Management in Action 259

Overview 261

Uses of Simulation 261

The Simulation Process 262

Monte Carlo Simulation 264

Discrete Event Simulation 270

Conclusion 282

Discussion Questions 283

Chapter Exercises 283

Part IV Applications to Contemporary Healthcare Operations Issues 285

11 Process Improvement and Patient Flow 287

Operations Management in Action 287

Overview 288

Problem Types 289

Process Improvement Approaches 292

The Science of Operations Management 299

Process Improvement in Practice 300

Conclusion 312

Discussion Questions 315

Chapter Exercises 315

Further Reading 316

12 Scheduling and Capacity Management 317

Operations Management in Action 317

Overview 318

Hospital Census and Rough Cut Capacity Planning 319

Staff Scheduling 321

Job/Operation Scheduling and Sequencing Rules 324

Patient Appointment Scheduling Models 328

Advanced Access Patient Scheduling 329

Fears About Advanced Access and Their Practical Resolution 334

Conclusion 335

Discussion Questions 335

Chapter Exercises 335

13 Supply Chain Management 339

Operations Management in Action 339

Overview 341

Supply Chain Management 342

Tracking and Managing Inventory 343

Demand Forecasting 345

VVH Diaper Demand Forecasting 349

Order Amount and Timing 351

Inventory Systems 358

Procurement and Vendor Relationship Management 360

Strategic View 361

Conclusion 362

Discussion Questions 362

Chapter Exercises 362

14 Improving Financial Performance with Operations Management 365

Operations Management in Action 365

The Need for Better Tools for Improving Financial Performance 366

A Systems Approach to Financial Management 369

Overhead Expenses 376

Revenue 379

Linking All Cost and Revenue Models Together 379

Case Example: Floyd Hospital 381

Discussion Questions 382

Chapter Exercises 383

Part V Putting It All Together for Operational Excellence 385

15 Holding the Gains 387

Overview 387

Human Resources Planning 388

Managerial Accounting 390

Control 392

Which Tools to Use: A General Algorithm 393

Operational Excellence 401

VVH Strives for Operational Excellence 402

The Healthcare Organization of the Future 404

Conclusion 405

Discussion Questions 405

Case Study: VVH 405

Glossary 407

References 415

Index 433

About the Author 441

Editorial Reviews

Reviewer: Helen Ewing, DHSc, MN, RN (A. T. Still University)
Description: This book provides tools and strategies for delivering quality healthcare in an efficient manner through improved operations management. Operations management encompasses the design, operation, and improvement of systems, procedures, and processes required to deliver quality healthcare. The theory provided in this book is inclusive and addresses topics such as strategic planning and use of evidence-based practice, and provides examples of tools most effective for decision-making in healthcare leadership roles.
Purpose: The purpose is to provide an overview of the need for effective healthcare operations within the current healthcare environment. The main focus of the book is to share theory, tools, and strategies to translate a business vision or strategy for healthcare into an action plan that will result in improved healthcare management. Examples from healthcare enable readers to apply the theory and principles immediately to realistic scenarios which will enhance learning. Discussion questions are posed at the end of each chapter to encourage further critical analysis.
Audience: The audience for this book is diverse and includes any healthcare professionals involved in healthcare organizations in leadership, educator, or clinical positions. The book serves as a reference for complex issues in healthcare management, but it also would be a very effective textbook for all levels of healthcare professionals in graduate and postgraduate programs.
Features: This is a great overview of the requirements for effective operation of a healthcare system in the United States that highlights the different structures and frameworks that are required to work together for a functioning unit. The book reviews some of the founding theory of quality improvement, including more current theories such as Malcolm Baldridge's National Quality Award, and the use of scorecards and evidence-based medicine in healthcare. A very clear introduction to each chapter identifies what it plans to accomplish. The book's layout makes good use of titles and highlighting to divide up topics. It also uses white space effectively with charts, graphs, and illustrations to highlight the different sections. The book is organized systematically, outlining the various processes of operations management chapter by chapter, yet each chapter can stand alone. Discussion questions, case studies, or exercises are available at the conclusion of each chapter to assist in applying the theory to practice. One of the strengths of the book lies in the very comprehensive and readable description of each of the processes required for effective health systems operation management. Textboxes in each chapter contain summaries of the main themes, such as Juran's Quality Trilogy model, metrics to measure performance from the financial perspective, and the complete project management process. A lot of excellent websites are incorporated into the theory to allow further exploration of the topics. Sidebars throughout the book highlight areas of importance and direct learners, and all terms are clearly defined.
Assessment: This is an excellent reference for health leaders. It is a very comprehensive review of many of the components of health operations management. This book is user friendly and provides a wealth of knowledge on healthcare organizations and their infrastructure. It would be a worthwhile addition to any healthcare leader's reading list.

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