Shows why hospitals and medical groups must break free of a business as usual mentality Exposes the waste in health care and applies the economic concepts of efficiency and effectiveness to redirect resources Explains proven processes for performance improvement that can be borrowed from other industries Looks at internal transformation as a necessary precondition for meaningful health system reform Highlights leadership’s strategic role in restructuring organizational responses to the new imperatives of the medical marketplace
Most hospitals, health systems, and other provider organizations in the United States are facing real financial peril. Mounting receivables from high-deductible health plans, financially challenged consumers, continuing cuts in Medicare, and a precarious economic environment suggest that real health care revenue has peaked. With operating costs increasing and critical investments in infrastructure—both physical and virtual—not being made, health care providers must find new ways to survive.
In their groundbreaking collaboration, Paradox and Imperatives in Health Care, award-winning authors Jeffrey C. Bauer and Mark Hagland explain why providers must draw upon internal resources to increase net revenue and provide the quality of care that payers and consumers are demanding. Through numerous case studies, the authors show how pioneering health care organizations are using performance improvement tools—including lean management, Six-Sigma, and the Toyota Production System—to produce excellent services as inexpensively as possible. This book challenges health care leaders to change their status quo mentality and to put their organizations on a positive path… while redirection is still possible.
About the Authors
Dr. Jeffrey C. Bauer is a nationally recognized health futurist and medical economist. He is a Chicago-based partner in the management consulting practice of ACS Healthcare Solutions (Dearborn, MI). In his numerous publications and presentations, he forecasts the future of health care and describes practical, creative approaches to improving the health care delivery system.
Dr. Bauer has published more than 150 articles, books, Web pages, and videos on health care delivery. He speaks frequently to national audiences about key trends in health care, medical science, technology, reimbursement, information systems, public policy, and creative problem-solving. Dr. Bauer is often quoted in the national press and writes regularly for periodicals that cover the business of health care. For details, visit www.jeffbauerphd.com.
Mark Hagland is a nationally respected independent health care journalist. He has been recognized for the quality of his writing in a variety of areas and has won numerous awards in recognition of his achievements. He writes regularly for Healthcare Informatics, the Journal of AHIMA, Biotechnology Healthcare, Behavioral Healthcare, AuntMinnie.com, and other prominent publications in health care. He covers a wide range of topics and issues pertinent to the industry.
Table of Contents
Chapter 1: The Economic Challenge: Approaching Chaos
Chapter 2: The Economic Imperative: Efficiency (Cost)
Chapter 3: The Clinical Imperative: Effectiveness (Quality)
Chapter 4: The Common Denominator: Information Technology
Chapter 5: Becoming Efficient and Effective: Case Studies
Chapter 6: Performance Improvement Methodologies to Organize and Manage Change
Chapter 7: Organizational Success Factors for Efficiency and Effectiveness
Chapter 8: Resolving the Paradox: Foundations for Successful System Reform
About the Author
does a masterful job of discussing practical approaches to achieving material gains in health care provider effectiveness and efficiency through e-health technologies and disciplined process change. It is a superb book.”
— John Glaser, Vice President and Chief Information Officer, Partners HealthCare, Boston, Massachusetts
“This book has just the right combination of empirical research, rigorous methods, and analytical thinking, presented via lucid writing and message clarity, that business people want and need. Most importantly, it provides real-world solutions to control costs and improve quality, recognizing, as the authors wisely write, that 'Third parties [including employers] are no longer able or willing to subsidize waste in health care.' Time is running out for change.”
— Helen Darling, President, National Business Group on Health, Washington, DC
“Balancing cost and quality with transparency is a complex challenge for our nation’s hospitals. Dr. Bauer and Mr. Hagland offer insights as to how we can truly make this a win-win-win situation by transforming healthcare together, giving Americans what they truly deserve - the most effective, efficient and caring healthcare system in the world.”
— Richard A. Norling, President and CEO, Premier Inc
“Jeff Bauer and Mark Hagland hit on a central theme that should be priority #1 in every hospital boardroom and c-suite in America – improved quality. Their discussion is unique and important because it applies proven economic principles to strategic plans and tactical actions that are often overlooked or unappreciated.”
—Al W. Gatmaitan, FACHE, President & CEO, Clarian West Medical Center, Avon, Indiana
“Wow! Providers, heal thyselves…supported by clearly communicated economic theory; real examples from all types of providers; just enough improvement process information to intrigue and direct further investigation; key success factors; and then, the punch line, a message for purchasers, payers and patients—a prescription and challenge for policy change. As provider, patient, and citizen I say Thanks!!!”
—Lois Huminiak, BSN, MS, CPHQ, Clinical Quality Coordinator. Northwestern Memorial Hospital, Chicago, Illinois
“... puts the health care industry’s biggest challenges into a fresh and useful perspective. ... Through numerous case studies, the authors show how successful health care organizations are using performance-improvement tools to produce top-quality services as inexpensively as possible.”
— QualityDigest, online, February 2008, Vol. 28, Issue 2