Improving Resource Efficiency Through Management Science

Abstract

Optimal management of resources is a very complex and difficult task for healthcare systems. Nevertheless, healthcare providers can employ data-driven methodologies and management science tools, coupled with managerial insights, to significantly improve both their resource effectiveness and efficiency. Understanding the full technical complexities of management science models is a daunting task for healthcare managers, but they can be aided by the increased availability of management science software. Readily available software does not require extensive technical competencies and is easily adaptable to resource changes. This article reports how a large healthcare system improved the cost effectiveness and service efficiency of its laboratory courier service through the use of management science techniques and readily available software. The laboratory courier system existed to serve a large multihospital healthcare system located in a major Texas metropolis. The routing and scheduling solution reported in this article yielded a very substantial 16.4 percent reduction in annual laboratory courier costs and a significant improvement in service levels. This study indicates that management science techniques and software are readily adaptable to the healthcare environment and are amenable to use by healthcare administrators.