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Serving as project leader during the implementation of a manufacturing resource planning II system is exciting but can cause anxiety and concern, especially if you have to deal with some of the many typical roadblocks. Below is a description of 10 roadblocks to watch out for and suggested ways to deal with them.
In the last two decades, manufacturing businesses throughout the United States have learned that an important factor affecting the productivity of their manufacturing systems when implementing manufacturing resource planning is the way they approach the implementation itself. Eighty percent of an implementation effort needs to be devoted to preparing people in the organization to use the system and only 20 percent should be devoted to purchasing the system.
Boston Regional Medical Center and Children's Hospital, Columbus, OH, offer models for working with a large managed care organization.
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Explore the source record for details and available documents.
Explore the source record for details and available documents.
As hospitals are now assuming more financial risk for the mix of cases and the resources being used in providing treatment, it is becoming more essential that providers efficiently track and manage the types of cases in their organizations. This article, the second in a six-part series on managing managed care, describes how one healthcare system has developed a case-mix management process using a financially-based service line organizational framework to monitor and control performance. Future articles in this series will continue to present how hospitals are successfully, and sometimes unsuccessfully, dealing with the problems and challenges of managed care.
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Every firm can be viewed as consisting of various processes. These processes affect everything that the firm does from accepting orders and designing products to scheduling production. In many firms, the management of processes often reflects considerations of efficiency (cost) rather than effectiveness (value). In this article, we introduce a well-structured process for managing processes that begins not with the process, but rather with the customer and the product and the concept of value. This process progresses through a number of steps which include issues such as defining value, generating the appropriate metrics, identifying the critical processes, mapping and assessing the performance of these processes, and identifying long- and short-term areas for action. What makes the approach presented in this article so powerful is that it explicitly links the customer to the process and that the process is evaluated in term of its ability to effectively serve the customers.
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Hospitals need to actively position themselves in the next 18 to 24 months to ensure continued access to financing. Hospitals need to shift their focus from investment income to operations. Hospitals should recognize the importance of balance-sheet liquidity to institutional investors. Not-for-profit hospitals should focus on both sides of the balance sheet. Healthcare executives need to develop effective leadership and investor-relations skills.
During the dot-com boom, many people saw the potential for new communication technologies to enable radically new business models, but they were far too optimistic about the speed with which the revolution would occur. Now, as the bitter disillusionment of the dot-com bust begins to fade, we have a chance to think again--this time more rationally--about how best to take advantage of the remarkable changes these new technologies are gradually making possible. One such change is the ability to create markets inside companies, allowing decision making to be decentralized and introducing some of the efficiency, flexibility, and motivating influence of free markets. In this article, the author examines this nascent form of business organization, exploring the benefits as well as the potential risks. BP, for example, met its goal of reducing the company's greenhouse gas emissions nine years ahead of schedule, not by setting and enforcing targets for each division but by allowing business unit heads to buy and sell emissions permits among themselves using an electronic trading system. And Hewlett-Packard recently experimented with a system that allowed employees to buy and sell predictions about likely printer sales, using a kind of futures contract. The markets ended up predicting the actual printer sales with much more accuracy than official HP forecasts. At a fundamental level, these changes are enabled by the fact that electronic technologies allow information to be widely shared at little cost. This simple fact has a profound implication for organizing businesses. When more people have more information, they can use it to make their own well-informed decisions, appropriate to local circumstances, instead of following orders from above. As a result, even very large companies can benefit from the collective wisdom of their employees.
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OBJECTIVE: Changes in generic strategies in response to discontinuous environments have been relatively ignored in the management literature. This study reports an examination of the relationships between Porter's (1980) generic strategies, discontinuous environments, and performance. DATA SOURCES: Archival data for 1984 and 1988 were collected for 172 acute care hospitals in Florida in order to test these relationships. STUDY DESIGN: To examine fully the performance impact of changes in strategy in a discontinuous environment, a longitudinal research design that identified a firm's strategy at two points in time, 1984 and 1988, was used. PRINCIPAL FINDINGS: Results indicate that firms with a proper strategy environment fit performed the highest, firms that did not change their strategy had no change in performance, and firms that changed their strategy toward a proper strategy environment showed an increase in performance. CONCLUSION: Findings support the notion that hospitals with appropriate strategy-environment combinations will exhibit higher performance.
As competition increases, the finance and marketing departments must work together to increase market share and improve the bottom line. If financial managers understand the functions of the marketing department, they can create a mutually beneficial and profitable relationship.
This article provides a framework of the various models currently available to form a heart institute that is designed to enhance the position of the providers with managed care and other third-party payers. Each model has components that are similar: Governance and management are provided by an advisory board or steering committee. The board is typically comprised of representatives of both the physicians and the hospital. Daily management is provided by a professional manager, such as an executive director. The ability of the model to locate, negotiate and enter into contracts for the providers is determined by the amount of integration of services provided by the participants. Each of the models discussed in sequence represents increasing integration; therefore, the cardiac IPO has more integration--particularly if it offers a new service such as capitation to the market--than the service-line approach. The ICHO has the most integration of the models presented. This form of organization will be addressed more completely in Part Four of this series. Part Three will discuss PHO models in-depth as well as address certain legal requirements that should be considered when developing a new, integrated PHO entity.
Before you fully implement a service line model, review these key logistics.