The Importance of Productivity in Health Care Organizations: the Increasing Costs of the Services - Research Paper Example

Before probing into the issue of health and hospital management, we should first get to know the actual meanings of health. Health can be defined as the overall physical condition of any individual whether corporeal or mental. It can also be said that health is the overall metabolic condition of any individual which relates his efficiency and competence level in any matter of life. Health is the most important factor in any one’s life which should be properly and carefully examined in order to undergo various matters of life efficiently and effectively. Importance of health Here, we should say that health is not just restricted to mental or physical condition of a person. It also includes financial and emotional condition of any individual. A person’s physical and mental health is of great importance while taking any decision regarding any specific issue of life. If a person has good physical and mental condition, he will be able to face all challenges, whether economical or social, easily and with full concentration towards the problem. But if a person’s physical and mental health level is down, he will not be able to properly focus or concentrate towards any issue of his life. Health care management While talking about health, we should also get to know what health care management is. If we define health care management, we can say that health management is related to those set of activities which are performed in order to maintain and keep a suitable and appropriate level of health. Various actions are taken by any individual to keep his health up to the level of perfection. In case of health, the level of perfection is not only subjected to mental, intellectual, psychological or physical health but also to the financial, social and rational health of any person. Health management system of public is considered to be the primary responsibility of the government of any country. Health management in hospitals Now, if we talk about health management in health care organizations, let’s discuss it in prospect of health management in hospitals. Involvement of human resource element plays an effective role in managing any health care organization. Kabene, et al., (2006) states that ‘Proper management of human resources is critical in providing a high quality of health care’. Hospitals are those places or organizations where treatment of different sort of diseases and infections take place. Hospitals have a direct link with health care management. The primary liabilities of health care organizations are to prevent, treat and manage the effects of different diseases through professional medical cure by the hands of dedicated and specialized doctors. It is the responsibility and obligation of the management of any hospital to take proper measures for the safety public’s health. Following are the measures which are taken by any hospital management in order to provide the public with proper health care management solutions: Neat and clean environment Highly qualified doctors and specialists Latest medical equipment Seminars related to health and care, and Proper diagnosis and treatment of diseases While talking about health care organizations, we must say that hospitals should have a proper information management system regarding patients, diseases and other factors. But these days, health care organizations are facing the challenge of effectively maintenance of computer systems and information regarding all aspects of the hospital. The ability of hospital management to take correct decisions regarding information management in all departments is directly related to the success of any health care organization. When the management will take proper and efficient decisions, the positive and beneficial effects of these decisions will be seen in all departments of the organization but when the management will be unable to take appropriate decisions; negative effects will occur on that specific health care organization. So, it is very important to implement a proper information system in any health care organization in order to effectively and efficiently run all the departments. There should be a close alignment and cooperation between administrative and the medical employees of any organization in order to meet those goals and objectives which are set by the board of directors of that specific health care organization. The most common objectives of any hospital are: Ensuring the improved health of any patient Improving the medical results and achievements of the hospital Improving the satisfaction level of any patient, and Improving the hospital’s financial strength Factors regarding success of health care organizations In order to take proper measures for the health care, management of hospitals should take various set of actions for effective implementation of those measures. Greater the appropriateness and aptness of those set of actions, greater will be the effect on the credibility and integrity of any specific heath care organization. Following are those set of actions which are of critical importance in the success of any health care organization: Improved decision making Improved process of scheduling, and Improved level of productivity Let’s now discuss all of these actions which have a direct relation with the success of any health care organization. Decision making Before going into the depth of decision making process in health care organizations, we should first get to know what actually decision making is. Decision making is the process of taking a proper and suitable action or decision after widely and broadly analyzing all the positive and negative aspects of any specific situation. In medical terms, we can describe decision making as the outcome of those mental processes which are undergone for selection of the best and most appropriate decision from a set of various decisions. Decision making process is that process in which comprehensive analysis of all factors and outcomes are analyzed or examined in order to come out with the decision which can positively affect the integrity of any organization. The decision making process can be said as a continuous process which has a direct relation with the environment and surroundings of any specific issue because these surroundings always have a deep impact on any decision being taken. Decision making in health care environment While talking about decision making process, we must discuss decision making process in a health care organization. These days, it has become crucially important for the management of any health care organization to take appropriate actions in establishing a proper decision making system which should be able to gather all necessary and required information about any specific issue, perform an accurate analysis and then come out with the most suitable decision for that issue. Talking about establishment of a decision making system not only means to take a decision but also to take apposite actions to prevent any sort of difficult or risky situation. If we talk about techniques regarding decision making, then one of the most important techniques in decision making in hospitals is simulation. Rakich, et al. (1991) states that ‘Simulation is a powerful analytical technique that plays a role in the development of managers' problem-solving and decision-making skills’. In any health care organization, decision making is seen as one of the basic set of operations needed to set, manage and attain the goals and objectives. Not a single health care organization can run without proper implementation of decision making system as this system comes into practice in every little matter of any specific organization whether it is related to top level management or to employees of the organization. All departments of the health care organizations need an effective and efficient decision making mechanism to be implemented by the management of the hospital. We must also say that in the health care environment, various issues can raise in different departments. These departments can be top level management, middle level management or lower level management. Various clashes are likely to take place in the health care environment. Some of these issues can be improper treatment, unavailability of medicines, seniority issue or medical equipment problems. Various sorts of conflicts occur within a health care organization and these conflicts need to be tackled in the early stages because if any conflict, clash or disagreement prolongs further, it may cause a negative effect on integrity of the health care organization. Following are the conflicts and other issues which occur within any specific health care organization which will need a proper decision making mechanism to come up a suitable decision: Patient can complain about improper attention towards him Hospital’s environment may not be hygienic Selection of medical equipment to be purchased Clash between senior and junior doctors may occur Clash among the top level management in setting of goals, and Shortage of medicines These were some of the issues which may occur in any health care organization. Health care management has to take effective measures in order to sort out these issues through an efficient decision making mechanism which will look what to do and what will be better for implementation. So, it’s the responsibility of the management of the hospital to properly analyze and take the most favorable decision regarding these issues. Importance of decision making in health care organizations If we talk about importance of decision making in health care organizations, we should say that the decision making process is the foundation of success for any health care organization. Managers consider many issues while taking a decision. One of those factors if cost. But it is not the only issue to be considered. Swinton (2007) states that ‘Affordability or cost is one common factor, but there are many, many more things that affect the choices you make’. Health is the most important element of concentration for every individual in the world. Not a single human can be said free of any sort of disease and hospitals are made for the proper treatment of any certain disease which may occur. So, the hospital management should be well aware of treatment of those diseases. In order to achieve the status of one of the best health care organizations in treatment of diseases, the management needs to take proper decisions regarding all matters and issues not only related to the treatment of diseases but also to other departments of the hospital. When the management of the hospital will effectively and efficiently take appropriate decisions related to any issue, the results will be in the favor of not only the hospital but also for the patients admitted there for treatment which will result in increased level of veracity and integrity of that health care organization. But when there will be no such mechanisms which can take required decision for any issue, the results will go against the organization and that health care organization will not be able to gain trust of the public. So, it can be said that a proper decision making mechanism is an essential part of any health care organization in order to achieve goals and objectives set by the management of the hospital. Analysis of situation for decision making For any specific situation in the health care organization, the first step before taking any decision is to perform a proper analysis of the problem considering all aspects of that situation. Cost benefit analysis can also be said as an essential aspect of decision analysis. Swinton (2007) states that ‘A cost benefit analysis can be a critical part of decision making’. Let’s take an example of a disease which is found in a patient’s medical reports. Now the state of affairs is that a decision is needed to be taken in order to effectively treat the patient without getting his life in danger because of that disease. Following are the steps which will play an essential role in the analysis phase of the decision making process in that health care organization: Identification of the disease Gathering all required information regarding that disease Analyzing the risk to health Gathering information about the available methods of treatment Analyzing the outcomes of various treatment methods, and Analyzing the cost of applying those methods of treatment After a proper analysis regarding all aspects of disease and it’s treatment in the analysis stage, the analysis report will be sent to the management of the hospital for the decision making process. Decision making process Decision making process is the most essential process regarding treatment of any disease after analysis. In this process, outcomes of the analysis phase are taken into consideration and depending upon the facts provided by the analysis of the problem, a suitable decision is taken for the treatment of any particular disease. Following are the steps which should be taken in taking any decision regarding any issue in the health care organization: First of all, the goals and objectives are to be set by the hospital management The those set objectives should be classified according to priority level Set of actions which are to be taken should be analyzed A plan of actions should be developed An alternate plan should also be made for the issue The plans should be assessed according to set tasks and objectives The decided plan of actions is assessed for consequences Outcomes are analyzed, and In the end, the most suitable action is planned by the hospital’s management. So, this was the sequence of all those steps which are undertaken by the management of the health care organization in taking any decision regarding any issue. Higher the effectively and efficiency level of the decision making process, lower will be the chances of conflict between the management of any health care organization. In any hospital, it’s the top level management or the board of directors who set the goals and objectives for the hospital. And when some problem arises while achieving those goals and objectives, it’s the management of the hospital which takes proper steps in order to eradicate the problem. All of this achieved through an effective decision making mechanism whose task is to analyze the issue and come up with the most appropriate decision for solving the issue. Here, we must say that while taking any decision for any problem, a substitute or alternative decision should also be considered because if in case the first decided plan of actions seem to be unable for implementation due to any reason, then we should be able to apply the alternate set of action sin order to sort out the problem. Another important measure to be taken is analyzing the outcomes and consequences of any action to be taken because in the health care organization, it’s the matter of health, so deciding something in health care environment can’t be taken lightly by the management of the hospital. These days, the top level management of any hospital wants to work in collaboration with the middle level and lower level management because in this way they are able to properly analyze the issue and take appropriate measures in setting out that issue. Scheduling While talking about decision making process in the health care environment, let’s not forget another important issue regarding success of any specific health care organization. The issue we are talking about is said as scheduling. Before getting into the issue of importance of scheduling in any hospital management, we should first get to know what actually scheduling is. As the name suggest, scheduling means to arrange, develop or schedule something in order to get the things done in a sequential manner. Scheduling means to properly arrange some set of actions in such a way that each event is scheduled to occur when the first event is completed. The proper definition of scheduling can be that it is a process in which set of decided actions or plans of any specific project are converted into a timely graphical occurrence depending upon the time constraints involved in that project. If we talk about scheduling according to the management perspective, we should say that scheduling means to manage a time table for the accomplishment of different stages or phases of any task or goal. Scheduling has a great impact on productivity of any hospital. Kok (2008) states that ‘Effective automation of healthcare processes can bring significant, measurable benefits, including better patient safety, greater operational efficiency, cost reductions’. If we decide any specific goal to be accomplished, then carrying out the set of actions for achievement of that goal in such a way that a proper time table is set for all those set of actions and they are operated according to that time table, then we say that we have scheduled that specific goal. Scheduling not only means to operate different things according to planned set of actions but also to operate them in a single time sequence. Scheduling can also be defined as that process or set of activities which are able to decide how to allocate or consign different resources into a set of decided tasks. Scheduling is of great importance in carrying out any project to its accomplishment. Let’s describe the process of scheduling by taking an example of a patient who comes to the hospital and after treatment, leaves the hospital. The scheduled steps involved in this process will be: Two patients come to the hospital They are given a specific consultation time One patient is scheduled to enter the doctor’s room after 15 minutes Second patient’s checkup is scheduled within those 15 minutes After the checkup of one patient is complete, the second patient enters the room While he is being checked by the doctor, the second one is scheduled to pay the fees What we take out of this scenario is that all processes are operated according to a set time table for them. If a clash occurs between the activities of that time table, the process of scheduling gets effected and the benefits which come out due to the process of scheduling can not be achieved in that way. So, it is to be taken in special consideration that such a time table is managed in which there is no chance of clash between the planned set of activities. Scheduling in a health care organization While talking about scheduling, let’s talk about the process of scheduling in a health care organization. In health care organizations, the process of scheduling is of critical significance because almost all of the departments in any hospital are interlinked with each other. Krempels (2007) and Panchenko (2007) stated that ‘Scheduling is done manually and involves specialized persons to facilitate the processes’. Scheduling plays a vital and major role in sequencing the set of activities which are to be performed in those departments of the hospital by managing a proper time line based timetable. Kruse (2009) emphasizes on online scheduling system, another way of scheduling, by stating that ‘Online hospital appointment scheduling service is vital for healthcare professionals, from physician’s offices to large healthcare establishments’. While talking about techniques, we should say that quantitative method of scheduling is not very much appropriate method for the process of scheduling. Robinson, et al., n.d. stated that ’One important reason why quantitative scheduling methods are not employed in hospitals is lack of data on patients’ attributes’. Scheduling, in a hospital, plans the set of actions in such a way that neither of the action coincides with any other action being taken either in that specific department or in any other department. When we discuss scheduling in health care organizations, we mean sequentially organizing those ways and methods which are used in order to manage the set of activities which are to be performed by the management of the hospital for the purpose of successful achievement of goals and objectives. There is not a single department or section in the hospital which could be managed without proper scheduling. When there will be appropriate scheduling of tasks in any department of the hospital, carrying out the activities will become really easier and efficient and also the time taken to complete any task will become less because proper scheduling of activities has a direct relation with time and efficient scheduling techniques result in less time consumption for the achievement of any specific task. But when there will be no process scheduling mechanism in the hospital, then the time needed to complete any specific task will be increased instead of getting decreased. Self organized scheduling in hospitals When we talk about scheduling of processes, we must discuss another method of scheduling the processes and that method is self scheduling in a health care organization. This form of scheduling can be achieved by conceptualization and recognition of a real time mobile information mechanism by the management in any specific health care organization. This form of scheduling which we are talking about is a self managed mechanism for the diagnosis and cure of patients. The methods or techniques used for this sort of scheduling are personal digital assistants and radio frequency identification chips. Personal digital assistants are used for the connectivity between the patients and the medical staff whereas radio frequency identification chips are used to connect various physical resources in the health care organization. Now, in the information system of this self scheduling mechanism, the physical resources are represented or recognized as the software agents. This method of scheduling the plans and activities can be really helpful in implementing an efficient information based mechanism for arrangement of plans and activities. Quantitative methods for scheduling If we talk about the quantitative methods for scheduling in a health care environment, we must discuss those specific methods which have a deep and beneficial impact on scheduling in any hospital. Following are the quantitative methods which can be used for effective scheduling in a health care environment: First come/ first serve method A first come first serve method is greatly used in any health care environment because of its enormous success in scheduling of tasks. The first come first serve method allocates surgery time to that surgeon of the hospital who requests it. One of the major advantages of this quantitative method of scheduling is that it provides greater flexibility in management of time and other tasks related to the hospital. The problems with this technique of scheduling are that the rate of cancellation goes high due to over-booking and the simultaneousness of idle time and the over time. It is because cancelled cases leads to idle time and the complications of surgeries lead to the over time. Block scheduling Another method used for quantitative scheduling is that of block scheduling in which a block of time is allocated to either all surgeons or any one of the surgeons which are usually half or a full day in span. The biggest advantage of this technique is that utilization of time gets increased due to the proper usage of afternoon time surgical suite. Advantages of scheduling in a health acre environment If we talk about the advantages of implementing process scheduling in a health care organization, it will result in dynamic improvement in meeting the set of goals and objectives well within time. Following are those advantages which can be taken by putting into practice an efficient process scheduling mechanism by the management of the hospital: Proper connectivity between patients and doctors Proper sequencing of events Successful achievement of goals and objectives Efficient appointment mechanism Sequential data flow in data base management of hospitals, and Effective connectivity medical staff and the hospital’s management So, these were some of the advantages of implementing an effective process scheduling mechanism in the health care organizations. Disadvantages of improper scheduling mechanism in a hospital As we know, scheduling of processes in a proper manner has a deep impact on achieving the desired goals and objectives in an efficient way and without appropriate mechanism for scheduling, attaining the desired goals doesn’t seem to be a reality. Let’s figure out those disadvantages which occur when there will be no proper mechanism for process scheduling in a health care organization. These disadvantages are: Inability to meet the deadlines set to achieve the desired tasks Inability to manage rush of patients Inability to administer patients’ treatment, and Improper connectivity between patients and doctors These were some of the disadvantages of not implementing an effective scheduling mechanism in a health care organization. So we can say that importance of scheduling can never be sidelined in any department of the health care organizations because it leads the way towards achievement of goals and objectives within time. Productivity While talking about decision making and scheduling aspects of a health care organization, let’s discuss another important factor of success of any health care organization. The factor which we are talking about is productivity. First of all, we should get to know what the word productivity actually means. Productivity means by that amount of out put which is gained by a certain level of input. It means achieving something as the result of some effort. We can also say that productivity means by the continuous or never ending output through the efficient and effective usage of some inputs. When we make some effort in order to gain something we desire, then the result of that effort is called productivity of that effort. Productivity is a characteristic of any individual. Any person in the world wants to achieve something which he desires. For that purpose, he makes some effort to achieve his goal. Now as the result of that effort, when he gets his desired output, it is said to be the productivity. How to achieve a desired level of productivity In order to achieve the desired level of productivity, we must work up to that level of hard work at which the desired outcome can be expected. Nothing in this world can be achieved without effort. If we want to attain our goals, we will have to work really hard for it and as the result of that, we will get our desired goal which can be said that we have achieved our desired level of productivity. Productivity can also be said as a state of mind. A state of mind, in which there is a continuous desire to achieve some thing on the basis of our continuous efforts. When we talk about productivity, we must talk about those factors which are involved in attaining the desired level of productivity. These factors are: Accumulation of human capital Innovation Accumulation of physical capital, and The business environment These were the four factors which are of great importance in achieving the desired productivity level. All of them work in collaboration in order to achieve productivity. Quantitative methods for productivity If we talk about quantitative methods used for increased level of productivity, we must discuss a very beneficial method for achieving that increased level of productivity in a health care environment. The method used for productivity is bar coding. Bar coding not only increases productivity but also it improves the documentation. It is widely used for the purpose of classifying patients into the acuity category. The nurses in the hospital are given list of criteria to be applied on each and every patient in the hospital. Bar coding saves the nursing time needed for direct care of patients and a classification mechanism is reached which is precise and supple. Productivity in health care environment In a health care organization, productivity means those results and achievements which are gained as the result of continuous management effort. Longest (1977) states that’ Productivity improvement has a role in holding down escalating costs of hospital services’. So, we can say that productivity is seen as one of the major motives of any health care environment. Productivity not only means to get profit in terms of capital but also the successful treatment of patients is also considered as positive aspect of productivity in the health care organizations. Productivity is of extreme importance in any hospital because higher the level of productivity by the hospital, higher will be the level of integrity of that specific hospital. But the cost should be managed effectively by the management of hospitals in order to manage a proper level of productivity. Jones (1986) states that ‘Increasing pressures on hospitals to contain costs have placed a new emphasis in the health care industry on productivity’. The importance of productivity in the health care organizations can also be judged by the fact that it plays a vital role in holding down the increasing costs of the services being provided by any hospital. This cut down of escalating costs is achieved through a high level of productivity by the hospital. Productivity in hospitals also depends upon the equality of departments of any specific hospital. We can also say that higher the quality of services being provided by any department of the hospital, higher will be the level of productivity achieved by that specific hospital. Let’s now discuss those factors which affect the level of productivity of any health care organization either directly or indirectly. These factors are: Quality of services provided by the hospital Decision making system of the hospital Scheduling mechanism of the hospital , and Communication level between the doctors and patients All of these factors have a direct link with the productivity level of any health care organization. If we talk about human resource, we can say that human resource element directly influence the productivity level in a sense that if they work hard and with full dedication, quality of services will automatically be improved. So, we can say that higher the quality of services being delivered by the hospital, higher will be the productivity level achieved by any specific health care organization. References Kabene, S. et al., 2006. The importance of human resources management in health care: a global context. human-resources-health.com. Available at: http://www.human-resources-health.com/content/4/1/20 [Accessed 18 December 2009]. Rakich, J. et al., 1991. Simulation in the Hospital Setting: Implications for Managerial Decision Making and Management Development. Emeraldinsight.com. Available at: http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=6A57B37001F0C4DFCE05785D5E51A132?contentType=Article&contentId=879977 [Accessed 19 December 2009]. Swinton, L., 2007. From Problem To Solution in 4 Steps: Facilitator's Guide to Participatory Decision Making. Mftrou.com. Available at: http://www.mftrou.com/facilitators-guide-participatory-decision-making.html [Accessed 19 December 2009]. Swinton, L., 2007. How to Make Decisions: How to Do a Cost Benefit Analysis In 3 Easy Steps. Mftrou.com. Available at: http://www.mftrou.com/cost-benefit-analysis.html [Accessed 18 December 2009]. Krempels, K. Panchenko, A., 2007 Dialog-Based Intelligent Operation Theatre Scheduler. Available at: http://74.125.153.132/search?q=cache:Ak3O78tRfKcJ:patat06.muni.cz/doc/patat06_115.pdf+process+scheduling+in+hospital+management&cd=29&hl=en&ct=clnk&gl=p [Accessed 18 December 2009]. Kruse, R., 2009. Online Hospital Appointment Scheduling Service. Buzzle.com. Available at: http://www.buzzle.com/articles/online-hospital-appointment-scheduling-service.html [Accessed 19 December 2009]. Robinson, G. Wing, P. & Davis, L., n.d. Computer Simulation of Hospital Patient Scheduling Systems. Available at: http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1067462/?page=2 [Accessed 19 December 2009]. Kok, A., 2008. Integrated Healthcare: The Push for Quality & Productivity. Futuregov.net. Available at: http://www.futuregov.net/articles/2008/oct/30/integrated-healthcare-push-quality-productivity [Accessed 19 December 2009]. Longest, B., 1977. Productivity in the Provision of Hospital Services: A Challenge to the Management Community. Jistor.org. Available at: http://www.jstor.org/pss/257703 [Accessed 19 December 2009]. Jones, D., 1986. An incentive management plan for hospital-based physicians. Springerlink.com. Available at: http://www.springerlink.com/content/q7264t22pm05483h/ [Accessed 19 December 2009]. Read More