Healthcare Operations Management / Edition 1

Healthcare Operations Management / Edition 1

by Daniel B. McLaughlin, Julie M. Hays

ISBN-10: 1567932886

ISBN-13: 9781567932881

Pub. Date: 04/01/2008

Publisher: Health Administration Press

Like its predecessor, this book focuses operations management and the strategic implementation of programs, techniques, and tools for reducing costs and improving quality. It not only covers the basics of operations management, but also explains how operations and process improvement relate to contemporary healthcare trends such as evidence-based medicine and


Like its predecessor, this book focuses operations management and the strategic implementation of programs, techniques, and tools for reducing costs and improving quality. It not only covers the basics of operations management, but also explains how operations and process improvement relate to contemporary healthcare trends such as evidence-based medicine and pay-for-performance. The book's practical approach includes real-world examples to illustrate concepts and explanations of software tools that solve operational problems. This second edition has been thoroughly revised to address current issues facing healthcare managers. Major revisions include extensive updates to the chapters on statistical tools, Six Sigma, and the Lean enterprise. The chapter on project management now includes information on agile, and the chapter on scheduling and capacity management has been substantially rewritten and expanded. A new chapter on improving financial performance with operations management has been added. Key Features: Emphasizes the importance of operations management in implementing the Affordable Care Act Aligns strategic and operational goals, including the use of project management tools and balanced-scorecard techniques to execute and monitor projects Thoroughly explores performance tools, techniques, and programs, including Six Sigma, the Lean enterprise, and simulation Applies process improvement tools to supply chain management, scheduling, and other healthcare issues Includes chapter overviews, a running glossary, discussion questions, and problems for each chapter

Product Details

Health Administration Press
Publication date:
Edition description:
Product dimensions:
7.30(w) x 10.20(h) x 1.10(d)

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

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