Abstract

Hospitals are facing big challenges: decreasing reimbursements are going alongside increasing costs and the necessity of investments. At the same time occurring, excellent quality of care, and high-patient satisfaction have to be assured. The dilemma of providing both with decreasing rather than increasing resources cannot be solved only by striving for economies of scale, but by optimizing supply chain management, or reduction of overhead. Possible effects of these measures most often are already exhausted and seldom have a positive impact on the quality of care or patient satisfaction. Management is tempted to use its best-known instruments to reduce costs, while medical staff's focus is on quality of care and often battle against management as a perceived enemy. The solution to this dilemma lies in focusing on medical core processes that are directly linked to patients' treatments and, thereby improving all the parameters of Michael Porter's value equation: costs, outcome, and patient satisfaction. This approach of performance enhancement presumes understanding, acceptance, and constructive collaboration of two usually separated worlds: The medical-scientific world involved in patient care and the financial world of management. In this article, the authors explain performance enhancement for optimized delivery of care and how the dilemma mentioned above can be solved. The authors explain how performance enhancement can be achieved in daily clinical practice, which kind of obstacles have to be overcome, which changes are necessary within a hospital, how medical staff can be motivated, and how the value of care equation can be influenced.

Highlights

  • Just imagine your salary is declining by small percentages every year while your costs of living stay steady or even rise

  • The dilemma of providing both with decreasing rather than increasing resources cannot be solved by using the best-known management tools: economies of scale, optimizing supply chain management, reducing overhead, Performance Enhancement and Value of Care further increasing the productivity of employees, or reducing spending for both the existing and new business

  • By improvement of medical core processes as the very starting point of performance enhancement, we can improve performance on the one hand and make a positive impact on the value of care according to Michael Porter’s landmark article “What is Value in Healthcare” published in 2010 (2)

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Summary

The Impact of Performance Enhancement on Value of Care in Hospitals

Reviewed by: Janis Kay Jansz, Curtin University, Australia Marji Erickson Warfield, Brandeis University, United States. The dilemma of providing both with decreasing rather than increasing resources cannot be solved only by striving for economies of scale, but by optimizing supply chain management, or reduction of overhead Possible effects of these measures most often are already exhausted and seldom have a positive impact on the quality of care or patient satisfaction. Management is tempted to use its best-known instruments to reduce costs, while medical staff’s focus is on quality of care and often battle against management as a perceived enemy The solution to this dilemma lies in focusing on medical core processes that are directly linked to patients’ treatments and, thereby improving all the parameters of Michael Porter’s value equation: costs, outcome, and patient satisfaction. The authors explain how performance enhancement can be achieved in daily clinical practice, which kind of obstacles have to be overcome, which changes are necessary within a hospital, how medical staff can be motivated, and how the value of care equation can be influenced

INTRODUCTION
PATIENT JOURNEY AND MEDICAL CORE PROCESSES
Patient Costs
Improvement of status quo
Focus on Quality
DISCUSSION
Findings
AUTHOR CONTRIBUTIONS
Full Text
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