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.