Principles of Healthcare Management
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1 Principles of Healthcare Management Dr Yodi Mahendradhata,MSc,PhD Center for Health Service Management, FM GMU
2 65,000 people converge daily 2,500 doctors -> 9,000 examinations/consultations daily
3 4,600 procedures/diagnostic tests daily 1,300 inpatients daily
4 Mayo clinic attracted many patients Patient registration 60, , ,000 Surgeries 23,628 30,800 76,300 Hospital beds 1,507 1,848 2,400
5 Mayo Clinic attracted many health workers Physicians and scientists 889 2,706 Administrative and allied health staff 5,350 35,971 Residents, fellows, students 1,504 3,229 Total 7,743 41,906
6 Mayo Clinic s financial performance is strong Total revenue (US$) 411,600,000 7,322,400,000 Total expenses (US$) Excess of revenue over expenses (US$) 353,100,000 6,699,600,000 58,500, ,800,000
7 The place to go if you re really sick The supreme court of medical opinion
8 One of the most influential and valuable service brand in the world A medical Mecca
9 A symbol of what is best in American medicine I am a better doctor
10 The best interest of patients is the only interest to be considered Dr William J Mayo, 1910
11 It has become necessary to develop medicine as a cooperative science Dr William J Mayo, 1910
12 Session structure Principles of General Management Principles of Healthcare Management
13 Part I Principles of General Management
14 Too many books, too little time* General Management Medicine Health care management *Source: Amazon.com (2011)
15 Management? Getting work done through people American Management Association Getting the right things done Peter Drucker
16 Management school of thoughts Scientific management Behavioral Social Systems management Contingency management Decisional management Quantitative measurement Management process
17 Management process Planning Organizing What needs to be done, when and how Who does what, under what conditions Actuating How employee are led, motivated Controlling How the plan is being followed up
18 Management competencies* Informational Actional Interpersonal Personal *Mintzberg (2011)
19 Species of organization... Entrepreneurial Machine Political Missionary Project Professional
20 Management as a practice? Art Craft Science
21 Part 2 Principles of Healthcare Management
22 Management Medicine Position not profession Profession not position Apply science, but not a science by itself Science Effectiveness = art + craft + science Effectiveness = science + craft + art
23 Healthcare management is unique Customers are sick Customers live in service sites A need service Inherently personal Customized Risk of harm
24 Healthcare management framework (Shortell & Kaluzny 1997) Environment E n v I r o n m e n t Health System Organizations Group / Department Individual Environment E n v I r o n m e n t
25 Challenges faced by healthcare organization managers (Shortell & Kaluzny 1997) Personnel Technical perfomance Changing environment Survival & growth
26 Changing environment Technological and social change Environmental complexity and uncertainty Competitive forces Multiple performance demands
27 Survival and growth challenges Long-run survival Long-run performance and growth
28 Technical performance challenges Productivity Efficiency Quality Consumer satisfaction
29 Personnel challenges Commitment Turnover Apathy Conflict among professions
30 From organization challenges to management competencies Challenges Competencies Environment How to renew the organization Survival and growth How to chart the future Technical performance How to operate the technical system Personnel How to motivate and lead people and groups
31 How to renew the organization? Organization design Managing strategic alliance Organizational innovation and change Organizational performance
32 How to chart the future? Strategy making Creating and managing the future
33 How to best operate the technical system? Managing groups and teams Work design Coordination and communication Powers and politics
34 How to lead effectively? Motivating people Leadership Conflict management and negotiation
35 Effective participation in 21st century life and work will require basic managerial literacy Joan Magretta
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