Revenue Management as a Key Trend in the Healthcare Operation Management - Essay Example

"Revenue Management as a Key Trend in the Healthcare Operation Management" is a perfect example of a paper on the health system.
Operation management refers to the management of the systems that undertake the production of goods and services or rather a sector of business enterprise with the responsibility of manufacturing goods and services (Nowicki, 2004). It entails a number of aspects ranging from forecasting, planning, and coordinating the organization inventories, making decisions on the allocation of activities among others. In healthcare, the service delivery has a variability tendency resulting from the different health issues arising when the patients visit the health centers for treatments. In this essay on health sciences and medicine, I am going to analyze revenue management as a major key trend in operation management in the medication industry.

Background Causes

A number of health organizations in the United States of America have turned away from sidelining the operation strategies and start recognizing the relevance of incorporating strategies when running their health provision services. This was as a result of these health organizations realizing losses when conducting their financial auditing. The increased losses have inhibited a number of these organizations from providing quality health services to their clients, who seek medication.

A number of American health organizations have been spending excessively when it comes to employee salaries, employee allowances, and send-off packages among others. This has reduced the capability of these organizations when it comes to budgeting matters, especially the purchase of other generic drugs and medical machinery and equipment.

 The rationale for this Trend

The best way forward taken by most of the health managers is minimizing the number of workers, especially the nonsubordinate and nonmedical staff (Whewell, 2010). This has a resultant effect of making these medical organizations operating more efficiently due to the placement of emphasis on cost control and productivity enhancement. A number of health organizations, having this particular operational trend in mind, can make use of revenue management in the process of manipulating medication fees and influence medical demands. By influencing medical demands in a positive way, the health organization managers lure clients towards their medical services and maximizing their revenues in the long run.

The health managers in some health institutions have made use of the six sigma, and through this, they have minimized their medication costs, improve the quality of healthcare provision, as well as raising the levels of their client’s medical satisfaction. Among other healthcare managers, they have tried to emulate the lean production and strategy and incorporate it into the medical industry.

The resultant effect of the emulation of lean production in the medication and healthcare industry is the use of a highly skilled workforce of medical professions and the most flexible medical equipment (Wolf, 2011). Healthcare managers need to make use of lean management towards their agenda of realizing the significances of revenue management as a trend in healthcare operations. This will lead to an accomplishment of a high level of quality with minimum resource usage in comparison to mass production.

On the other hand mass production of healthcare services demands space, workers, and a number of inventories in meeting their set medical standards. The high workforce population in the medical organizations generates a lot of expectations as compared to the former traditional systems. This has a resultant effect of increasing anxiety and stress among the medical personnel in the healthcare organizations.

Conclusion

The different operational trends in the medical industry are a result of the various health issues arising when patients seek these health centers for medication reasons. Revenue management is a key trend in the operational management in the healthcare industry, which has made healthcare managers reduce the levels of the employee base and improve on service delivery. The implication is that these medical organizations will get in a position to improve on the quality of service delivery as well as luring clients to their healthcare services.