Operations Management - Medac Healthcare Services - Case Study Example

Operations Management Introduction Operations management is the controlling and organizing of the vital business activity of providing goods and services to customers (Encarta, 2005). In the healthcare industry, operations management generally emphases on providing a service of healthcare to patients. An organization has three basic functional areas, and these are: operations, finance and marketing (Operations Management 2004:4). As operations is one of the three elementary functions of an organization it holds a strong importance in the healthcare industry. Johnston and Clark (2001: 175), categorize that in service sectors where there is slight competition, capacity management has received “scant attention”, at the same time as being poorly managed. Operations Management is involved with the management and design of processes, products, services and supply chains. It deliberates the attainment, growth, and utilization of resources that organizations need to deliver the goods and services their clienteles need. The scope of OM ranges from tactical to strategic and operational stages. Descriptive strategic matters include defining the size and locality of manufacturing plants, designing technology supply chains, and determining the structure of service or telecommunications networks. Tactical matters comprise plant outline and structure, equipment choice and replacement project management methods. Operational issues include control and production scheduling, inventory management, inspection and quality control, materials handling and traffic, and equipment preservation policies. Currently in the United Kingdom’s publicly financed National Health service (NHS) is characterized by a tremendous growth of private healthcare provides. It Is due to this fact that the NHS is finding in necessary to increase its competitive advantage and find mechanisms that will improve management techniques. One of the strategies that NHS is adapting is to make sure that operations of the healthcare care sector are efficient, this can be achievable through application of operations management (OM) policies and practices. Background The report was based on the contact between Medacs Health Services PLC (“the company”) and Alpha medical services (UK) Limited (“the Supplier”) for the provision of the services of our company to provide Locum Work. The minimum rate of the will be 18 pound per hour. The company is an employment business that supplies contractors to clients. The supplier shall procure for the company the services of the contactor to carry out assignment. If the contractor is unavailable for any particular Assignment or any part of any particular assignment, the supplier may meet its obligation to the company by procuring the services of a replacement with an equally suitable contractor with the same level of skill and qualification as the contactor. The provision of a replacement worker is subject to the company checking the replacement contractor’s level of skill and qualification and subject to the prior consent of the company which shall not be unreasonably withheld or delayed. The supplier shall ensure that the company is given a reasonable amount of time and all relevant information to allow it to assess the suitability of any proposed replacement before the point at which that replacement’s service are required. Where the contractor’s unavailability is a result of the contractor’s wish to take holiday, the supplier shall ensure that the company is given not less than four weeks’ notice of the contractor’s proposed dates (Mintzberg & Glouberman, 2001). The company will endeavor to find assignment for which the supplier could procure the contractors services in accordance with these terms although it shall be entirely within the discretion of the company to determine whether to offer the supplier any assignment. The relationship between the company and the contractor shall not be one of employment and nothing in this Agreement shall be interpreted to construe such a relationship between the company and the contractor and the company shall not exercise any direction or control over the Contractors during any Assignment. The supplier will receive a minimum rate out above which is the amount that the company reasonably expects to achieve for all hours worked. Prior to the start of any particular assignment the company shall provide the supplier with the identity of the client and if applicable the nature of their business, the date work is to commence and the duration or likely duration of the work. The contract also states that the payment shall be made to the supplier’s invoice which must identify the contractor and the client to which the contractor has been supplied. The supplier is also supposed to indemnify both the company and each affected client against all and any costs or claims, assessments, demands etc., which may be made on or against any or all of them in respect of income tax, corporation tax, value added tax, national insurance contribution and all and any other revenue based on payments made by the company to the supplier under these terms (Slack & Chamnbers 2009). The aim of the report The aim of the report is to outline the operations that should be carried to make sure that the terms of employment and the management processes to be applied by Alpha medical services as a result of MEDACS PLC wish to engage services of Locum officer in their organization. The policy that will be discussed and agreed upon will depend on the factors such as the method of payment to the Locum officer, the qualification and the skills of the concerned locum officer. It is aimed at also analyzing the appointment of a visiting officer, a specialist or dentists who require recommendation from our company. IR35 is issued and expressed implicitly to the supplier, to ensure that there is no misunderstanding that may arise, the contract is meant to ensure that the operation will be effective (Heskett, et al, 1990). The purpose of this report will also be to make sure that there contractual terms are explored to give an efficient management of the system. The goals of the operation is present in the diagram below. Five performance objective Quality (qualifications, training, skills) To improve the quality of our services, the qualification and skills of the Locum officer shall be critically analyzed and assessed. The staffing department ensures that there is qualified and skilled Locum officers. Flexibility The only way the operation can work properly is to consider the fact that a locum officer is flexible. The medical officers who are entailed in Alpha medical services should be able to avail themselves to fill the vacant shifts apart from their normal scheduled hours in their respective departments and facilities (Mintzberg & Glouberman, 2001). Cost The cost is very important, it is very important to note that money is a motivating factor. Each Locum officer will be paid according to the house that he has been on duty. The minimum amount is 18 pounds per hour. Speed Speed is all about efficiency, it will be therefore very important to consider the operations will be filled. A vacant shift should be filled swiftly. The technique that have been placed t to ensure that management of the operation is fast is a record system that enhances that there is tracking of a vacant shift (Mintzberg & Glouberman, 2001). Dependability The issue of dependability is very important as it will enhance there is efficiency in the operation. The locum officers should ensure that they are dependent to the other senior medical officer to ensure that the system is not clogged. This polar diagram indicates how operations can be measured. Performance of the operation Requirements of the market Demand Fluctuations Fluctuation of demand for doctors can be attributed to the shortage of doctors who are permanently assigned to one hospital only. A specialized doctors needs to be well trained, have experience of dedicated years of service, be compassionate and guide the rest of the medical team for improvement of service delivery and health of the patients. However, recent trends have indicated that there is an increasingly high rate of fluctuations for demand of doctors and an impeding shortage. This scenario is attributed to the fact that the largest percentage of highly qualified and experienced doctors are in the aging population and will soon retire form employment (Klassen & Rohleder, 2001). Another reason for fluctuation in the demand for doctors is the lack of enough financial resources for all the hospitals to pay for all specialization in the medical field. As such, they may require the doctor to perform a specific medical procedure under terms of service of a contract. This allows small clinics and hospitals to derive the benefits of having a qualified doctors work for them, but on an irregular basis, as and when a case arises. It is therefore imperative to solve the problems of doctors demand fluctuations in order to prevent creating excessive customer waiting and reduction in quality of service. The problem of demand fluctuations is being handled by introduction of doctors that work as Locum. Working as a locum doctor gives a doctor immense flexibility to operate in different hospitals within a locality. A locum consultant is important in this scenario as it allows the doctor to connect to different hospitals that need his specialty. On the other hand, a doctor looking for flexibility can have an opportunity to explore a particular department of practice. This exercise will be effective in giving the doctor vast experience in case the doctor wishes to get permanent employment (Klassen & Rohleder, 2001). Alpha medical services provides consultation services for contracting or new or replacement of a locum doctor through a contractual agreement. A contract is signed with aim of defining the main tasks the locum doctor is required to perform, at what time and for how long. The contract becomes effective once the doctor has agreed to the terms and conditions of the contract and agrees to work for different hospitals within the locality. Medac Healthcare services is in need of a locum doctor. This is because of the insufficient in the number of specialized doctors required in the hospital. Locum doctors work in shifts and therefore, they require less finances to operate with as opposed to employing a permanent doctor. The process of contracting a locum doctor for Medac Healthcare begins with a contractual agreement between the Alpha medical services and the doctor. The consulting firms undertakes to hire the doctor on a contractual basis to work in the hospital for specific times when required by the hospital. The contract is used throughout the employment period in order to protect both the rights of the contracting hospital and the locum doctor. The contactor should be clear to the doctor by spelling out the basis of their contractual agreement. The contract between Medac Healthcare and Alpha medical services does require the consulting firm to supply a replacement for the doctor contacted should there be any need to do so (Johnston & Clark, 2001). The locum doctor is contacted through an email in order to confirm their willingness to work under the specified term. Once a hospital has agreed with the contracting firm on the type of doctor required, the consulting firm contact the customer with the requirements of registration as the doctor of that specific hospital. This development initiates the doctor into the hospital where the doctor gets his schedule of activities. The tasks required per doctor are presented in a document that indicates shift per doctor. The document is filled by the locum doctor based on the tasks required to be performed in the hospital. The shift document indicates the day, the date, shift start and end time, on call time in shift, total break time and total hours worked daily. The documents requires the locum doctor to sign on it as a declaration of acceptance of the terms and conditions of work as presented in the filled form. The cost of the locum doctor is presented in the table below. Day Date Total Hours Worked Rate Per Hour Total Charge Mon 20/10/2014 8 60.00 480.00 Tue 21/10/2014 8 60.00 480.00 Wed 22/10/2014 Thru 23/10/2014 12 60.00 720.00 Fri 24/10/2014 8 60.00 480.00 Sat 25/10/2014 Sun 26/10/2014 Mon 27/10/2014 12 60.00 720.00 Tue 28/10/2014 12 60.00 720.00 Wed 29/10/2014 8 60.00 480.00 Thru 30/10/2014 8 60.00 480.00 Fri 31/10/2014 8 60.00 480.00 Sat 1/11/2014 Sun 2/11/2014 Mon 3/11/2014 8 60.00 480.00 Tue 4/11/2014 8 60.00 480.00 Wed 5/11/2014 8 60.00 480.00 Thru 6/11/2014 8 60.00 480.00 Fri 7/11/2014 12 60.00 720.00 Sat 8/11/2014 12 60.00 720.00 Sun 9/11/2014 12 60.00 720.00 Mon 10/11/2014 16 60.00 960.00 Tue 11/11/2014 Wed 12/11/2014 8 60.00 480.00 Thru 13/11/2014 8 60.00 480.00 Fri 14/11/2014 12 60.00 720.00 Sat 15/11/2014 12 60.00 720.00 Sun 16/11/2014 12 60.00 720.00 Total Monthly Cost For The Locum Doctor 13, 200 Risk management Risk management is an effective tool that assists in identification, assessment and control of threats that may arise from operational activities. Efficiency in risk management earns the management confidence as competent leaders. Risk is assessed depending on both severity and probability. There are many benefits of risk management. The most important benefits of risk management is the ability to assist the management in implementation of mitigation measures that will prevent the occurrence of risks. Risk management in this case is significant as it prevents Medac Healthcare from suffering any losses caused by failure of the agreement between the locum doctor and Alpha medical services (Slack & Chamnbers 2009). A contract in the most effective way of mitigating risks of the doctor never fulfilling his/her obligations to the hospital. When the hospital and the doctor enter into a contract, the terms of the contract becomes a legal binding on the part of the doctor to undertake the performance of specific duties failure to which there will be consequences (Porter 1998). Quality as a function of the gap between the customer, doctors and patients can be improved through effective communication and establishment of empathetic doctor-patient relationship. This relationship is built over periodic of time and it all depends on the variability of the doctors. When the doctor is present in the hospital most of the time, the patients get enough to from a strong bond. Patients consider the quality of service based on how well the doctor listens, validates concerns from the patients and also acknowledges concerns raised. The doctor also demonstrates quality by clearly explaining to the patient in an understandable language, the diagnosis and the recommended treatment option available for the patient’s medical condition. References Heskett, JL, Sasser, WE and Hart, CWL. 1990. Service Breakthroughs. New York: Macmillan International. Johnston, R & Clark, G. 2001. Service Operations Management. Essex: Pearson Education Limited. Klassen, KJ & Rohleder, TR. 2001. Combining Operations and Marketing to Manage Capacity and Demand in Services. The Service Industries Journal. 21 (2), pp. 1-30 Rhyne, DM. 1988. The Impact of Demand Management on Service System Performance. The Service Industries Manual. 8 (4), pp. 446-458. Nigel Slack, Stuart Chambers & Robert Johnston, 2009. Operations Management. Financial Times/ Prentice Hall; 6 edition Porter, M. 1998. Competitive Advantage: Creating and Sustaining Superior Performance. Free Press; 1 edition. Mintzberg, H., & Glouberman, S. (2001, vol. 26, no. 1). Managing the Care of Health and the Cure of Disease - Part II: Integration. Healthcare Management Review , pp. 70-84. Thompson, J. (1967) Organizations in Action, McGraw-Hill.Thompson, J. (1967) Organizations in Action, McGraw-Hill. Read More