Marketing for management.
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The health care marketplace is becoming increasingly competitive. The hospital has a built-in marketing force with the nursing department, because nurses are in constant, direct contact with the customer. Nursing must identify the case mix profile of the community and focus the hospital product lines to meet community needs. The nursing department should decentralize, change, measure, and innovate the staff mix needed to operationalize these product lines. The development of nursing practice standards for the case mix will help to identify the staff mix needed and create systems to efficiently manage the product lines. Nursing management must become aware of cross-subsidization and downward skill substitution of nursing personnel. Nursing information systems must generate quality reports that invoke cost consciousness on the part of nursing staff. Quality assurance programs must become unit based and complete with frequent audits to correlate length of stay with nursing quality. Correlations must be determined between nursing productivity and case mix to determine the hospital's niche in the marketplace. The transformation of health care into a competitive business industry has created many opportunities for nursing. The health care industry's incentives for efficiency along with the decreasing demand for inpatient hospital services will be the forces driving health care toward a competitive marketplace. The hospital's nursing department should be strategically positioned to become accountable for increasing market share and enhancing quality patient outcomes. The focus has shifted from the theoretical to the tactical, which is a step in the right direction, particularly for nursing. Nursing, if strategically positioned, will not only thrive but will also excel in this chaotic environment by capturing the opportunities and being innovative.
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Advantages and pharmacy applications of computerized hospital management-control and planning systems are described. Hospitals must define their product lines; patient cases, not tests or procedures, are the end product. Management involves operational control, management control, and strategic planning. Operational control deals with day-to-day management on the task level. Management control involves ensuring that managers use resources effectively and efficiently to accomplish the organization's objectives. Management control includes both control of unit costs of intermediate products, which are procedures and services used to treat patients and are managed by hospital department heads, and control of intermediate product use per case (managed by the clinician). Information from the operation and management levels feeds into the strategic plan; conversely, the management level controls the plan and the operational level carries it out. In the system developed at New England Medical Center, Boston, Massachusetts, the intermediate product-management system enables managers to identify intermediate products, develop standard costs, simulate changes in departmental costs, and perform variance analysis. The end-product management system creates a patient-level data-base, identifies end products (patient-care groupings), develops standard resource protocols, models alternative assumptions, performs variance analysis, and provides concurrent reporting. Examples are given of pharmacy managers' use of such systems to answer questions in the areas of product costing, product pricing, variance analysis, productivity monitoring, flexible budgeting, modeling and planning, and comparative analysis.(ABSTRACT TRUNCATED AT 250 WORDS)
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Psychiatric and chemical dependency services are increasingly being delivered through managed care with greater emphasis on ambulatory and outpatient treatments. Inpatient facilities can preserve their involvement in behavioral health services by actively developing a managed care product line. This article describes the nature of change in behavioral services, what competitive behavioral health providers will look like in the future, and the actions hospital administrators should be taking now.
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There are eight areas in a business plan where energy is often wasted. Here's how to spot the gaps that prevent plans from being put into action.
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This article briefly suggested that a marketing perspective may aid hospital administrators and nursing directors in meeting their RN staffing needs. It proposes that adoption of the marketing concept (i.e., being responsive to the needs and wants of the relevant public) will help diminish the shortage of qualified RNs being experienced today. Other specific marketing tools may further aid in implementing the consumer orientation in such institutions. Additional research should further investigate the extent to which such marketing approaches can help in overcoming the problems the health care field is facing today.
Health maintenance organizations (HMO), with their diverse audiences and complex operations, offer the best proof that management information systems (MIS) are emerging as an essential and marketable business asset. Authors Paul Egerman and Susan Heineman offer many uses for a good MIS and why such a program is essential to an HMO's success.
Hospitals, anxious to maximize patient revenues, and purchasers, just as anxious to contain soaring healthcare costs, are getting together through direct contracting. But the arrangements aren't the answer for all providers. Such efforts are fruitless without adequate financial commitment, cooperation from the medical staff and a reputation for quality. However, if the key ingredients are there, the deals can be sweet indeed.
Joel Ackerman serves as director of advanced technologies for Minneapolis-based ProviderLink, an electronic claims software subsidiary of United Healthcare Corporation. United Healthcare is a managed-care company that owns and operates 19 fee-for-service and capitated health maintenance organizations in 15 states serving almost two million members. In addition, United Healthcare has subsidiary operations selling services to more than 80 other Blue Cross Blue Shield plans and indemnity and HMOs--including its competitors. These services include managing departments such as pharmacy, providing specialized contract clinics like mental health or chemical dependency, performing utilization-review services, and providing computer outsourcing such as enrollment and electronic claims processing. Ackerman has been involved in both American National Standards Institute (ANSI) efforts and the Health and Human Service's Workgroup on Electronic Data Interchange (WEDI).
The industry's days of gargantuan earnings are gone forever. Why? Managed-care outfits are demanding price breaks, and generics are proving tough competitors.