Importance of Effective Management of Hospitals

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Most large entrepreneurs are likely to agree that in private sector companies the results of work are directly dependent on the effectiveness of management methods. At the same time, the relationship between hospital management methods and the effects of clinical treatment is still a matter for discussion.

And, in the end, the main decisions for the care of patients are taken by the attending physicians, and not the heads of the hospitals. Also, many people are convinced that the effectiveness of medical institutions depends primarily on the availability of the necessary financial means and that increasing funding automatically improves the quality of medical care. Thus, there is still no consensus on what practical application of effective management methods can bring.

In a thorough analysis of the data, we identified five factors that affect the effectiveness of management practices in the hospital and the results of its work. These factors are mostly similar to the parameters that determine the efficiency of production companies. In this regard, we believe that when developing reforms in the healthcare industry, these factors must necessarily be taken into account.

Size of hospital

There is a clear connection between the size of hospitals (based on the number of employees) and the effectiveness of healthcare management consulting in India. In particular, in medical institutions with a large number of staff, the management effectiveness indicators were higher than those of others. Hospitals with less than 100 employees generally demonstrated the lowest results.

Level of competition

The effectiveness of management also depended on the number of competing institutions located near the hospital. The rates of hospitals that did not face competition were significantly lower than those of institutions that had several competitors. At the same time, linear growth of standard performance indicators was noted as the number of competing establishments increased.

There are several reasons why competition can increase the effectiveness of hospital management. In all healthcare systems, managers of health facilities are ready to work more actively with strong competitors, because they can achieve more significant advantages in their environment.

Ownership structure

In all countries covered by our study, private clinics (both commercial and non-profit) in general demonstrate higher management effectiveness than state hospitals.

As a result of careful analysis, it became clear that private hospitals use much more effective methods of personnel management. A possible reason is that such hospitals, unlike public medical institutions, are not required to comply with certain personnel restrictions. For example, private hospitals have greater freedom in hiring professionals and working with staff, as well as in choosing incentives to encourage the most effective employees.

The degree of independence of managers

Is the efficiency of some hospitals because the supervisory authorities carefully monitor their activities? Or have they been successful because their leaders are given the freedom to make independent decisions?

Hospital management consultancy services can help hospitals improve the quality of care and improve financial performance. Thus, the introduction of these methods should be the central element of any programs aimed at controlling overall costs in the healthcare system.

What are the Specific Challenges Faced By Healthcare Companies, and How Can Business Advice Help Them?

The market faces several challenges at the same time. Three key points for hospital management consultancy in India are the improvement of cost-effectiveness, the leadership quality and the integration of the various service providers into the processing responsibility.

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Firstly, the hospital market is underfunded. The DRG system is designed to distribute the scarce resources to the various service providers as efficiently as possible. But it can no longer be distributed as is made available, and the mere provision of medical care is neither compensated nor regulated. Economically speaking, the cost of acute care is regulated by patients. The demand for medical care is growing; the personnel costs are rising steadily. On-site service providers need a basic understanding of remuneration and transparency about their cost and income situation to be able to bear their economic responsibility properly.

Secondly, the hierarchical management system, which has been set up for decades in the hospital sector, is increasingly reaching its limits. The young generation Y is no longer involved and withdraws from the grown system. For decades to work beyond the agreed working week, is a model that no longer works. The incentive of an overly attractive reward in the future, when “one has once managed it,” has been eliminated and thus a large part of the competitive pressure.

Today good organizational structures, training and development concepts are being promoted. But the question remains unanswered, which is opposed to the hierarchical leadership system. Many clinics are at the beginning, to deal with questions of the management qualification of their medical staff. Different management cultures in hospitals contribute differently to achieve sustainable organizational development in times of change.

From our point of view, central leadership competence is the empathy. Emphatic leadership and cultural change towards a team-oriented approach to leadership are the key factors for hospital management consulting company sustainable successful change projects. Promoting this requires the necessary fingertip feeling of the consultant.

Thirdly, integrated process management and the elimination of thinking in departmental and professional boundaries is a challenge. Within the scope of the medical care of a patient, countless people work hand-in-hand. The risk management systems of hospitals show that even small incidents or inconsistencies can accumulate to errors with an enormous scope.

Where people work, create errors. To reduce this systematically by clarifying responsibilities and through structured communication processes has a decisive impact on the quality of medical care. Where people are oriented and communicate with each other regardless of their hierarchical position, mistakes are reduced. But there is still a long way to go in hospitals.

What kind of training and know-how do applicants need to make a career in the clinic?

There is a long way to accompany clinics in the organizational development from the strategic concept to the process-oriented implementation. This calls for a constant curiosity and willingness to learn from the consultant, especially in the systemic context. First, a good armor is necessary. There is no way around for a sound training in the management of organizations. But the classic business management instruments should not be blindly familiar in terms of effectiveness.

Safe and Quality Patient Care Through Management Process

The management of hospital processes broadens the view of managers about the functioning of health organizations. Through this, you can map all the activities that each employee of the institution develops – from the assistance to the back office -, in addition to monitoring the performance of that work (if it complies with the established standards.). It is about seeing the whole without forgetting the responsibility of each one in the performance of his functions.

Technology can facilitate the implementation of process management since both the methodology and its objective are understood. The concept directs management practices through control and planning actions, in addition to evaluation and review, to focus on the achievement of goals and also in the reduction of errors that may affect the operation of the hospital and impact on patient care.

The implementation of healthcare management consulting in India promotes various changes in the health organization, from identifying opportunities, defining investments in certain areas to reducing costs and storage, increasing production capacity and reducing response time.

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Having access to this global vision of hospital processes enables the manager to identify what needs more attention at that time and, thus, optimize the execution of work – that directly reflects patient satisfaction. However, for this, it is necessary that employees understand their role in each process, and understand how errors and complications affect the functioning of the organization.

Therefore, it is essential that the hospital project consultants in India encompasses all the hospital equipment, which should be trained and involved in the fulfillment of the activities by the established goals.

Essential technologies

Technology can be seen as aligned with the implementation of hospital process management, since it has the potential to streamline and optimize access to data, and organizes them in a systematic way only on one platform. In particular, four computerized systems are essential for organizations that wish to computerize the practice of the methodology.

The first is the Enterprise Resource Planning (ERP), a system that concentrates all the necessary information for the monitoring of the hospital’s processes in one place and, thus, allows quick and easy access to the data.

Already the Patient Electronic Health Record (PEP) compiles the care history of each, and includes the specialists who attended him, the tests he performed, prescription drugs, among others. It also has the potential to optimize the verification of data in healthcare processes, which facilitates the identification of complications and correction of courses.

The finance and billing systems – which can integrate the ERP – are also technological tools that can be used to support process management. They help directly control the activities carried out in the hospital and, by concentrating the data in the same place, help to locate errors that can compromise the financial balance of the health organization.

Finally, the fourth and last essential technology for process management are the supply management systems, which act directly in the control of the dispensing of medicines and other materials, which avoids shortages or expiration of medicines.

It is important to remember that, for the full use of technologies, it is essential – again – to involve and train all employees of the institution. Without the correct complement of the digitized data in the systems – by physicians, nurses and others related to both assistance and other hospital activities – the ability to optimize process management is lost.

Regardless of the technologies chosen, process management has the potential to organize routines and help the hospital balance the quality of attention to the finite resources of health organizations.

How Hospitals Benefit From Innovative Hospital Management

Today, healthcare providers face more and more competitors, increased cost pressures, a growing number of elderly and chronically ill patients, and changing regulatory and quality requirements.

Healthcare reform is promoting a trend from mass to value-based healthcare with new “network” delivery models and more seamless transitions between care settings such as hospitals, outpatients, and home care. In this highly competitive and cost-intensive environment, running a hospital is particularly complex. It requires more transparency regarding quality and cost parameters to enable data-driven decision-making and process innovation.

It’s not an easy task to improve the quality/cost equation: hospitals need a lot of energy and have the infrastructure with the highest fixed costs- and many have built-in inefficiencies.

What can facility managers do?

Hospital consultancy services perform a crucial role in the transition. Improved facility management can deliver significant value, and there are challenges in many areas such as resource, service, space, and energy and quality management. Facility managers focused primarily on service delivery should improve collaboration and align strategies with technical leaders to ensure that “soft” and “hard” facility management sizes are well integrated.

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Here are some ways hospital project consultants in India can improve their company’s performance:

  • Ensure that buildings are up to date and work efficiently
  • Track essential assets and medical equipment in real time
  • Switching from reactive to preventive maintenance to minimize risk and optimize lifelong equipment costs
  • Converting fixed plans and deadlines for service provision to usage-based facility management and predictive clean-up
  • Support the accreditation of the hospital (e.g., by meeting the requirements for permanent access to the object site with linked status and maintenance history)
  • Presenting a quality image to attract patients and medical staff (the best doctors are expecting the best facilities)
  • Gain insight into land use, allocate available land and area requirements, optimize m2 usage, and support relocations
  • Improve energy efficiency and reduce waste
  • Increasing the comfort of patients and visitors (e.g., parking, signage, climate control)
  • Monitor, ensure and record the quality

Best Practice Processes and Software Support

Existing processes must be explored throughout the facility to accommodate new requirements and become more efficient. The need to align with best practices and to be cost-effective is even more significant in cases of mergers and an enlargement of the institution. Integrated FM software can help drive standardization and can generate data for better insights into performance. In healthcare facilities, FMs should focus on best processes that meet regulatory and accreditation requirements.

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IoT technology and usage data

New and affordable smart building technologies enable FMs to improve operations based on actual on-site values. From signage on the property to ample parking for visitors, to user-friendly cleaning through clicks on bathrooms, many imaginative healthcare scenarios can be used. Technological advances are turning the entire healthcare industry around.

Sensor-collected data (big data) can also be integrated with traditional data from facility management software and other data sources, providing great potential for reducing costs and improving the user experience. Facility management will follow suit and benefit from the possibility of new technologies to become even more powerful.

Five Fatal Errors in Hospital Management

An efficient hospital management consultancy in India manages to get the hospital to meet its goals, raise the quality of health services and, consequently, increase its income. But that is not all. When the hospital management is recognized as efficient, this becomes a preponderant factor at the moment of the choice of patients by a health institution. At the same time, it is also an advantage for the hospital to negotiate work agreements with health professionals.

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Improving management is the way to keep operating processes fully operational and enhance the performance of the institution. Know here the five fatal errors that affect the efficiency of hospital management and know what to do to avoid them.

  1. Make quick changes without planning

After identifying gaps that make evident the needs for changes in hospital management, a plan should be the first step in implementing the actions. Hospitals that implement rapid transformations in management without first preparing responsible planning to end up exposing the organization to risks, which can lead to serious complications over time.

It is also necessary to pay attention to the changes in the external context, this depends on the market, and the internal scenario of the hospital organization to, if appropriate, re-evaluate and readapt the strategies and objectives.

  1. Failure in communication between teams

Breakdowns in communication can slow down the flow of hospital processes. The uncertainties, unfocused and inaccurate information make it clear that the work teams lack guidance or were not prepared to act adequately in the functions they should perform. Improving the performance of the organization implies making the best of the skills and competencies of the professionals involved.

For that, it is essential not only that the work environment is conducive to communication, but also that the teams act in an integrated manner, respecting and following standards to ensure uniformity of processes.

  1. Lack of standardization of processes

When there are no established solid standards, the tasks end up being executed differently by each professional, that helps the organization to be chaotic, which demands a great effort even when it comes to carrying out simple actions how to find data, answer questions or clarify orientations to patients.

  1. Do not consider the increase in expenses before expanding the business.

The institution may believe that by maintaining a good performance and achieving good income, it is prepared to make an expansion, opening a new unit. It is an initiative that involves some risks, that is why the hospital must consider that the growth of the business implies the increase of expenses, it is not as simple as only dividing the attention to the patients and dividing the health professionals between the units.

  1. Not being a reference to something specific

A hospital can be a center of reference for various reasons, either by having a team of qualified health professionals, by having a differentiated hospital management model or by offering excellent care to patients.

It is essential that the hospital management consulting company develops a differential to build credibility. Given this need, automating operations is a means of converting the most dynamic management, achieving more fluid processes and ensuring that quality care is given to the patient.

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