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Developing a competitive advantage in the market for radiology services.

This article describes how managers of outpatient diagnostic radiology services can develop a competitive advantage by increasing the value of services to patients and referring physicians. A method is presented to identify changes to services that increase their value. The method requires the definition of the "value chains" of patients and referring physicians. Particular attention is paid to the use of information systems technology to suggest and implement service changes. A narrow range of health services was selected because the approach requires a detailed understanding of consumers and how they use services. The approach should, however, be examined carefully by managers seeking to develop a competitive advantage for a wide range of health services.

Economic Competition↗

Unsettling times for public health care providers.

Public health care facilities are facing challenging times as managed care sweeps the nation. Many of their traditional patients are switching to private health plans. Managed care organizations often are reluctant to contract with or refer patients to public facilities because of their relatively high costs. Public providers systems must deliver a quality product at competitive costs to survive in a managed care environment.

Cost Control↗

Rural hospitals and the adoption of managed care strategies.

This research examined the performance of rural hospitals engaged in different levels of managed care activities and identified factors related to performance and competition that affected rural hospitals' likelihood of pursuing managed care as a strategy. The sample studied consisted of 139 rural hospitals in Iowa and Nebraska. Results showed that a relatively high percentage of hospitals were engaged in managed care activities, mainly through contractual arrangements. The study found that high competition in the marketplace increased the likelihood of hospitals pursuing managed care strategies, while high demand markets had a negative association with the likelihood of pursuing a managed care strategy. No significant relationship was detected between poor performance and pursuing a managed care strategy.

Bed Occupancy↗

Managing markets.

This paper considers the management of markets in the context of the reformed National Health Service (NHS). There are three facets to managing markets: regulating and monitoring markets to ensure that they are competent, managing contracts, and managing agents. The paper considers issues concerned with market structures and entry to and exit from markets; the concept of opportunism is used to explore ways in which self-interested behaviour can operate for good or bad in the setting up of contracts for health care; and factors related to motivating and monitoring agents. The difficulties involved in managing markets are reviewed, and Enthoven is criticized for adopting an over-simplified approach to market management and the abilities of collective agents. The paper concludes by raising questions about the way in which markets are at present being managed in the NHS, and the accountability of purchasers for health care provided and the money spent.

Contract Services↗

[Implementing integrated health care--current state and progress].

The legal framework for Integrated Health Care since 2004 offers many opportunities for health professionals and insurers in the competition for "high quality care". Germany's largest statutory health insurance fund, BARMER, has already developed around 100 Integrated Health Care Projects for a wide range of conditions. One important issue is the relationship to disease management programs. Our program "integrated cardiological care" combines both DMP and integrated health care and thus already shows good results with respect to patient acceptance as well as savings trough the changing patterns in interventional cardiology.

Cardiology↗

Preserving the physician-patient relationship in the era of managed care.

Even without comprehensive health care reform legislation, the US health care system is undergoing significant changes. Probably the most important change is the expansion of managed care with significant price competition. One of the major concerns about this change is the effect of managed care on the physician-patient relationship. To provide a normative standard for evaluating the effect of changes, we need an ideal conception of the physician-patient relationship. This ideal can be summarized by six C's: choice, competence, communication, compassion, continuity, and (no) conflict of interest. For the 37 million uninsured Americans there is little chance of realizing the ideal physician-patient relationship, since they lack the choice of practice setting and physician, receive care in a rushed atmosphere that undermines communication and compassion, and have no continuity of care. While many insured Americans may believe they have an ideal physician-patient relationship, the relationship is threatened by lack of a regular assessment of competence, by financial incentives that undermine good communication, and by the persistence of conflict of interest. The shift to managed care may improve the choice of practice settings, especially in sections of the country that currently lack managed care; increase choice of preventive services; make quality assessments more routine; and improve communication by making greater use of primary care physicians and nonphysician providers. However, the expansion of managed care and the imposition of significant cost control have the potential to undermine all aspects of the ideal physician-patient relationship. Choice could be restricted by employers and by managed care selection of physicians; poor quality indicators could undermine assessments of competence; conductivity requirements could eliminate time necessary for communication; changing from one to another managed care plan to secure the lowest costs could produce significant disruption in continuity of care; and use of salary schemes that reward physicians for not using medical services could increase conflict of interest.

Conflict of Interest↗

Privatization of a public hospital: a quality improvement strategy.

Public hospitals face mounting challenges posed by the rise of managed care, increasing hospital competition, growing responsibilities in indigent care, and stagnant public sector revenues. Privatization exists as a viable strategy for reengineering the structure and operation of public hospitals to meet the new demands of quality and efficiency imposed by a rapidly changing health care environment.

Delivery of Health Care, Integrated↗

Managed care and the relevant costs for pricing.

An important factor in pricing decisions is the concept of cost analysis. The objective of this article is to describe the relevant costs for pricing medical services in the managed care environment. It discusses how a proper understanding of costs enables one to make correct pricing decisions.

Cost Control↗

Building corporate character. Interview by Nan Stone.

Stride Rite is a good company by any definition: Keds, Sperry Top-Siders, and Stride Rite children's shoes are consumer favorites for their fit, quality, and comfort. Wall Street analysts praise the company's outstanding financial performance. Innovative programs such as the first corporate child-care center and public service scholarships support Stride Rite's reputation as one of the most responsible employers and corporate citizens in the United States. Behind Stride Rite's good performance are the building blocks of corporate character: a legacy of quality and service and a leader committed to keeping that legacy lively. When Stride Rite shipped its first children's shoes in 1919, they came with the company's commitment "to produce an honest quality product in an honest way and deliver it as promised." For Arnold Hiatt, that commitment has been the driving force behind the company's evolution from manufacturing into marketing and product development as well as the guiding principle in its relations with consumers, dealers, suppliers, and employees. But Stride Rite's corporate character is also a reflection of Hiatt himself. In his early 20s, Hiatt fled a management training program "designed to make carnivores" out of its new employees and bought Blue Star Shoes, a small manufacturing company that had gone into Chapter 11. Through experience and "stumbling around," he built Blue Star's sales to $5 million-and got a practical education in management, markets, and human nature that has proved equally useful in running Stride Rite.

Child↗

The EFQM Excellence Model. German experiences with the EFQM approach in health care.

OBJECTIVE: To expand on previous reports by illustrating experiences German health services organizitions made in their assessment against the European Foundation for Quality Management (EFQM) Excellence Model. To provide an evaluation of the EFQM method compared to peer auditing and accreditation concepts within health care. DESIGN: To indicate the EFQM method and scoring system and draft the process of self-assessment in health services organizitions. To refer to the experiences of German health care pioneers during their early assessments. RESULTS: Using the EFQM approach, an organizition can earn up to 1.000 points. More than 50% of German hospitals scored 200-300 points and not a single organizition achieved over 450 points. To make a comparison, the best score obtained in an industrial setting was between 650-750 points. In addition to the numbers, this report describes success factors and best practices of self-assessments, as well as limitations, barriers and lessons learned during the implementation phase. CONCLUSION: The Excellence Model is a systematic quality management approach to gain competitive advantage. It is non-governmental, non-financier driven, and generic enough to address health care issues. Having its foundation in industry, however, it is not specific enough to cover all areas relevant to health care. Integrating the management-smart method of self-assessment with clinical standards as delivered by peer auditing and accreditation systems generates the potential to deliver excellence in health care.

Benchmarking↗

Information technology and the future of health services delivery.

This article examines the dramatic ways that information technology will influence clinical care, strategic management, and organization of the health care delivery system in the years ahead. Advancements in microprocessors, telecommunications, mass storage of data and images, and input-output devices will be accompanied by increased use of health-related software packages. Standardized patient record formats and coding systems will facilitate system integration and networking of computers. Clinical decision support systems will assist physicians in medical diagnosis and treatment. Computer-enhanced medical imaging and other noninvasive procedures will reduce surgery, patient pain and discomfort, and lower costs. Automation will get closer to the patient. Management information and decision support systems will be central to effective management in a highly competitive environment. Information systems will support strategic planning, cost control, productivity enhancement, quality improvement, and evaluation of products and services.

Delivery of Health Care↗

A financial argument for service-line management.

Service-line management is a management concept that focuses attention on specific segments of business within a hospital. Service-line management breaks down silos, fostering a team approach. Hospitals should use service-line management to grow strategically important services. Resources should be deployed appropriately. Hospitals should explore strategies for increasing volume of profitable services.

Diagnosis-Related Groups↗