Principles of Healthcare Management Dr Yodi Mahendradhata,MSc,PhD Center for Health Service Management, FM GMU
65,000 people converge daily 2,500 doctors -> 9,000 examinations/consultations daily
4,600 procedures/diagnostic tests daily 1,300 inpatients daily
Mayo clinic attracted many patients 1924 1983 2007 Patient registration 60,063 276,800 520,000 Surgeries 23,628 30,800 76,300 Hospital beds 1,507 1,848 2,400
Mayo Clinic attracted many health workers 1983 2007 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
Mayo Clinic s financial performance is strong 1983 2007 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 58,500,000 622,800,000
The place to go if you re really sick The supreme court of medical opinion
One of the most influential and valuable service brand in the world A medical Mecca
A symbol of what is best in American medicine I am a better doctor
The best interest of patients is the only interest to be considered Dr William J Mayo, 1910
It has become necessary to develop medicine as a cooperative science Dr William J Mayo, 1910
Session structure Principles of General Management Principles of Healthcare Management
Part I Principles of General Management
Too many books, too little time* 700.000 600.000 500.000 400.000 300.000 200.000 100.000 0 General Management Medicine Health care management *Source: Amazon.com (2011)
Management? Getting work done through people American Management Association Getting the right things done Peter Drucker
Management school of thoughts Scientific management Behavioral Social Systems management Contingency management Decisional management Quantitative measurement Management process
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
Management competencies* Informational Actional Interpersonal Personal *Mintzberg (2011)
Species of organization... Entrepreneurial Machine Political Missionary Project Professional
Management as a practice? Art Craft Science
Part 2 Principles of Healthcare Management
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
Healthcare management is unique Customers are sick Customers live in service sites A need service Inherently personal Customized Risk of harm
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
Challenges faced by healthcare organization managers (Shortell & Kaluzny 1997) Personnel Technical perfomance Changing environment Survival & growth
Changing environment Technological and social change Environmental complexity and uncertainty Competitive forces Multiple performance demands
Survival and growth challenges Long-run survival Long-run performance and growth
Technical performance challenges Productivity Efficiency Quality Consumer satisfaction
Personnel challenges Commitment Turnover Apathy Conflict among professions
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
How to renew the organization? Organization design Managing strategic alliance Organizational innovation and change Organizational performance
How to chart the future? Strategy making Creating and managing the future
How to best operate the technical system? Managing groups and teams Work design Coordination and communication Powers and politics
How to lead effectively? Motivating people Leadership Conflict management and negotiation
Effective participation in 21st century life and work will require basic managerial literacy Joan Magretta