Chapter 24

Health care
Chan I Cruz I Diwa I Dilig I Palma I Selga I Teves
March10, 2017
Learning objectives
Understand health care operations and
contrast three operations to manufacturing
and service operations
Exemplify performance measures used in
health care
Illustrate future trends in health care
Healthcare operations management

Defined as the design, management, and

improvement of the systems that deliver
health care services
Distinguishing features
o Operated by highly trained professionals who generate
requests for service but are also involved in delivery of
service
o Relationship between charged prices and actual performance
is not as direct
o Quality and service measures largely opinion-based
o No simple line of command
o Hospital care not a stocked commodity but a resource-
oriented service organization
 Hospital prodict-process framework

WIDE

General
Hospital/ER
Range
of Products Specialty
Offered Hospital
Psychiatric
Hospital
Rehabilitati
on Hospital

NARROW
HIGH Complexity of Operations LOW
 Hospital layout
Minimize: Wait and Transport times
Traffic flows (guest, patient, staff)
Distance
Area
 Characteristics of processes/care chain
Characteristi Trauma Oncology Joint
c of process/ patients patients replacement
care chain patients
Emergency or Emergency Elective Elective
elective
Urgency High Moderate Low
Volume High Medium High
Duration of Short Chronic Short
treatment
Diagnostic Immediate Ongoing Ongoing
requirements
Consultation Limited time Involved Little
requirements possible
No. of Depends on Many Few
specialties situation
involved
Bottleneck Operating Operating Operating
room room room
Decoupling After surgery Diagnosis Diagnosis
point
Based on J. Vissers and R. Breech, Health Operations Management (London: Routledge, 2005). P. 45
Appointment First Surgery Surgery
Lab 2nd Surger
Wait List Consultati Wait List Preparatio
Test Visit y
on n