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Modern Hospital Management Trends: Top Issues Confronting ... · Health Care (Cont.) Evidence-based...
Transcript of Modern Hospital Management Trends: Top Issues Confronting ... · Health Care (Cont.) Evidence-based...
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Fevzi Akinci, Ph.D. Zirve University
Vice President for Academic Affairs & Dean of Faculty of Economics and Administrative Sciences
June 24, 2012
Modern Hospital Management Trends: Top Issues Confronting
Today’s Hospitals
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Presentation Outline
Major Health Policy Objectives Health Care Delivery System Features Global Health System Challenges Top Issues Confronting Hospitals Summary Questions & Answers
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Objectives of Health Care Policy
Adequacy and equity in access Income protection Macroeconomic efficiency Microeconomic efficiency Freedom of choice for patients Appropriate automony for providers
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Key Determinants of Health (Starfield, 1973)
Social & environmental factors Genetic make-up Personal life styles & behaviors Health care system
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Mortality Genetic make-up-%20
Health care system-%10
Social & environmental factors-%20
Key Determinants of Health (CDC, 1979)
Personal life styles & behaviors-%50
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Health Care Delivery System Resources
PERSONNEL
FINANCING
TECHNOLOGY & SUPPLIES
FACILITIES
HEALTH CARE DELIVERY SYSTEM
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Basic Health Care Delivery Functions FINANCING
Employers Government-Medicare, Medicaid Individual self-funding
INSURANCE Insurance companies Blue Cross/Blue Shield Self-Insurance
DELIVERY (Providers) Physicians Hospitals Nursing Homes Diagnostic centers Medical equipment vendors Community health centers
PAYMENT Insurance companies Blue Cross/Blue Shield Third-party claims processors
Utilization controls
Risk underwriting
Capitation or
Discounts
Access
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External Forces Affecting Health Care Delivery
Social values and culture - ethic diversity - cultural diversity - social cohesion
Health Care
Delivery
Population characteristics - demographic trends & issues - health needs - social morbidity (AIDS, drugs, homicides, injuries, auto accidents, behavior-related diseases)
Political climate - President & Congress - interest groups - laws & regulations
Economic conditions - general economy - competition
Technology development - biotechnology - information systems
Physical environment - Toxic waste, air pollutants, chemicals - sanitation - ecological balance, global warming
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Criteria for Health System Performance Assessment
Access Cost
Quality
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12 Megatrends in Global Health Care
Innovation & demand soar in emerging markets (China, India, Turkey, Brazil, etc.)
Personalized medicine and techological advances Aging populations and chronic diseases Rising costs Global pandemics (AIDS) Environmental challenges Source: Dillon. K., & Prokesch. http://hbr.org/web/extras/insight-center/health-care/globaltrends
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12 Megatrends in Global Health Care (Cont.)
Evidence-based medicine Non-MDs providing care Payers’ influence over treatment decisions The growing role of philanthropy Prevention is the next big business opportunity Medical tourism Source: Dillon. K., & Prokesch. http://hbr.org/web/extras/insight-
center/health-care/globaltrends
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FACT
Hospitals are no longer the “core business” of health care. They are in the process of being replaced by organizations that can provide primary care, health promotion, and chronic disease management.
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The Drivers for Reinvention for Hospitals
Cost containment New forms of payment Technological developments Consumer preferences Health care reform efforts
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Transition from Hospital to Health Care Systems
Hospital Health Care System Acute inpatient care ----------------------> Continuum of care Treating illness ----------------------------> Maintaining/promoting wellness Caring for individual patients -----------> Accountable for the health status
of defined populations Commodity product ----------------------> Value-added services -- emphasis on primary care, health
promotion, ongoing health management of chronic illness
Market share of admissions -------------> Covered lives Fill beds ------------------------------------> Care provided at appropriate level Manage an organization -----------------> Manage a network of services Manage a department --------------------> Manage a market Coordinate services ----------------------> Actively manage and improve quality
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Why Managers Should Care ?
Positioning the Organization Handling Threats and Opportunities Evaluating Implications Planning Capturing New Markets Complying with Regulators Following the Organizational Mission
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Changing Health Care System Integration of healthcare delivery organizations Continual advances in medical technology Increased collaboration to improve community health status Increased emphasis on disease prevention and wellness
promotion Growing elderly population Better-informed patients demanding high-quality care Pressure to control costs and demonstrate the value of the
services delivered Efforts to implement continuous quality improvement initiatives
Source: http://www.ache.org/carsvcs/ycareer.cfm
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Top Issues Confronting Hospitals
Financial challenges Health reforms Patient safety & quality Governmental mandates Care for the uninsured Physician-hospital relations Patient satisfaction Technology Personnel shortages
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Financial Challenges
Low federal reimbursement Government funding cuts Bad debt Decreasing inpatient volume Increasing costs for staff, supplies, etc. Inadequate funding for capital improvements Emergency departments Revenue cycle management Competition from specialty hospitals
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Patient Safety & Quality
Engaging MDs in improving the culture of quality Redesigning care processes Pay for performance (P4P) Redesigning work environment to reduce errors Public reporting of outcomes data Medication errors Compliance with accrediting bodies (JCAHO,
NCQA)
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Access to Care
Primary care MDs role as gatekeepers Increasing number of uninsured people ER overcrowding Ability to pay for service High out-of-pocket expenses Coverage limitations
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Five Hospital Trends to Watch in 2012
Investment in technology Greater focus on social and mobile
marketing opportunities Employer-hospital partnerships Stronger physician relationships Formal population health management
programs
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Ten Ways for Hospitals to Increase Profitability in 2012
Focus on the continuum of care Design models to reduce readmissions Have a good relationship with payors Manage new service lines to increase
market share Control labor costs with meticulous data
collecting
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Ten Ways for Hospitals to Increase Profitability in 2012
Reduce supply costs by working with vendors and physicians
Improve deficiencies in the ER and Operating room
Create population health management programs for chronic illnesses
Consider outsourcing some services Revamp the energy cost strategy
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Five Core Concepts to Reduce Readmissions
Recognition Communication Intervention Education Reconciliation
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Five Key Financial Ratios to Track
Operating margin Operating EBIDA margin Days cash on hand Debt to capitalization Capital spending
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Two Important Perspectives for Health Care Managers
Systems Perspective Conceptual Frameworks
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Community characteristics
Health care organization
characteristics
Provider characteristics
Population characteristics
Structure Process Outcomes
Technical excellence •Appropriateness •Effective
Interpersonal excellence •Patient-centered •Responsive
Clinical status
Functional Status
Satisfaction
Mortality
Conceptual Framework For Quality Assessment
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A Behavioral Model of Health Service Use Environment Population Characteristics Health Behavior Outcomes
External environment Health care system
Perceived health status
Evaluated health status
Consumer satisfaction
Personal health
practices
Use of health
services
Predisposing Enabling Need characteristics resources Demographics Personal/family Perceived Social structure Community Evaluated Beliefs
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The Health Belief Model Individual perceptions Modifying factors Likelihood of action
Demographic variables (age, sex, race, etc.) Sociopsychological variables (personality, social class, peer pressure, etc.) Structural variables (knowledge about the disease, prior contact with the disease, etc.)
Perceived susceptibility to Disease “X” Perceived seriousness (severity) of Disease “X”
Perceived threat of
Disease “X”
Likelihood of taking recommended preventive
health action
Cues to action Mass media campaigns Advice from others Reminder postcards from physician or dentist Illness of family member or friend
Perceived benefits of preventative action
minus
Perceived barriers to preventative action
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Execution
People
Transformation
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Transformation Achievement Orientation Analytical Thinking Community Orientation Financial Skills Information Seeking Innovative Thinking Strategic Orientation
Source: Calhoun J.G. and et al. (2008). Development of an Interpersonal Competency Model for Healthcare Leadership, Journal of Healthcare Management 53(6): 375-389.
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Execution Accountability Change Leadership Collaboration Communication Skills Impact and Influence IT Management Initative Organizational Awareness Performance Measurement Process Management/Organizational Design Project Management
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People
Human Resources Management Interpersonal Understanding Professionalism Relationship Building Self Confidence Self Development Talent Development Team Leadership
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Characteristics of Successful Adaptive Leaders
Set a clear, consistent, and meaningful direction Develop people as the # 1 resource Build trust and optimism Problem-solve what does not work Grow opportunistically and relentlessly
Source: Kenagy, J.W. (2009). Healthcare Management Challenges for the 21st Century: Building Adaptive, High Performing Management Team.
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Questions & Answers
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Thank You!
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Follow-up
Fevzi Akinci, Ph.D.
Zirve University Vice President for Academic Affairs &
Dean of Faculty of Economics and Administrative Sciences
Tel: +90 342-211-6758 Email: [email protected]