Analytics and Decision Support in Health Care Operations Management

The Author YASAR A. OZCAN, PhD, is Charles P. Cardwell, Jr. Professor and vice chair and director of the Master of Science in Health Administration program at Virginia Commonwealth University. Extensively published in health care performance assessment, he is the founding Editor-in-Chief of Health Care Management Science. Dr. Ozcan's massive work has applied data envelopment analysis to health care facilities including hospitals, nursing homes, mental health care organizations, and more. He has taught health analytics and decision support in VCU's MHA and Executive MSHA graduate programs for more than 30 years.

• Tables and Figures xiAcknowledgments xxiThe Author xxiiiIntroduction xxvChapter-by-Chapter Revisions for the Third Edition xxviiChapter 1: Introduction to Analytics and Decision Support in Health Care Operations Management 1Learning Objectives 1Historical Background and the Development of Decision Techniques 2The Health Care Manager and Decision Making 3Importance of Health Analytics: Information Technology (IT) and Decision Support Techniques 3The Scope of Health Care Services, and Recent Trends 4Health Care Services Management 5Distinctive Characteristics of Health Care Services 5Big Data and Data Flow in Health Care Organizations 7Summary 9Key Terms 9Chapter 1 Supplement: Data Analytics in MS Excel: Creating and Manipulating Pivot Tables 10Exercises 23Chapter 2: Predictive Analytics 27Learning Objectives 27Steps in the Predictive Analytics Process 28Predictive Analytics Techniques 29Judgmental Predictions 29Time-Series Technique 30Techniques for Averaging 31Techniques for Trend 41Predictive Techniques for Seasonality 55Accuracy of Predictive Analytics 61Prediction Control 62Summary 65Key Terms 65Exercises 66Chapter 3: Decision Making in Health Care 85Learning Objectives 85The Decision Process 85What Causes Poor Decisions? 87The Decision Level and Decision Milieu 87Decision Making under Uncertainty 88Payoff Table 88Decision Making under Risk 93What If Payoff s Are Costs 97The Decision Tree Approach 101Analysis of the Decision Tree: Rollback Procedure 102Sensitivity Analysis in Decision Making 103Decision Analysis with Nonmonetary Values and Multiple Attributes 107Clinical Decision Making and Implications for Management 110Summary 114Key Terms 114Exercises 115Chapter 4: Facility Location 135Learning Objectives 135Location Methods 137Cost-Profit-Volume (CPV) Analysis 137Factor Rating Methods 140Multi-Attribute Methods 143Center of Gravity Method 145Geographic Information Systems (GIS) in Health Care 149Summary 154Key Terms 154Exercises 155Chapter 5: Facility Layout 169Learning Objectives 169Product Layout 170Process Layout 171Process Layout Methods 171Method of Minimizing Distances and Costs 175Computer-Based Layout Programs 175Fixed-Position Layout 177Summary 180Key Terms 180Exercises 181Chapter 6: Flow Processes Improvement: Reengineering and Lean Management 197Learning Objectives 197Reengineering 198Lean Management 199Work Design in Health Care Organizations 203Work Measurement Using Time Standards 207Work Measurement Using Work Sampling 214Work Simplification 223Worker Compensation 237Summary 237Key Terms 238Exercises 238Chapter 7: Staffing 253Learning Objectives 253Workload Management Overview 254Establishment of Workload Standards and Their Influence on Staffing Levels 254Patient Acuity Systems 256The Development of Internal Workload Standards 261Procedurally Based Unit Staffing 263Acuity-Based Unit Staffing 266External Work Standards and Their Adjustments 270Productivity and Workload Management 271Summary 273Key Terms 273Exercises 273Chapter 8: Scheduling 281Learning Objectives 281Staff Scheduling 281Surgical Suite Resource Scheduling 290Summary 294Key Terms 295Exercises 295Chapter 9: Productivity and Performance Benchmarking 297Learning Objectives 297Trends in Health Care Productivity: Consequences of Reforms and Policy Decisions 298Productivity Definitions and Measurements 299Commonly Used Productivity Ratios 302Adjustments for Inputs 304Adjustments for Outputs 308Case Mix Adjustments 310Productivity Measures Using Direct Care Hours 312The Relationships between Productivity and Quality in Hospital Settings 314Dealing with the Multiple Dimensions of Productivity: New Methods of Measurement and Benchmarking 316Data Envelopment Analysis 318Overview on Improving Health Care Productivity 321Summary 323Key Terms 323Exercises 323Chapter 10: Resource Allocation 333Learning Objectives 333Linear Programming 333Maximization Models 335Minimization Models 345Integer Programming 346Summary 355Key Terms 356Exercises 356Chapter 11: Supply Chain and Inventory Management 363Learning Objectives 363Health Care Supply Chain 363Traditional Inventory Management 370Economic Order Quantity Model 374Classification System 379Summary 384Key Terms 384Exercises 384Chapter 12: Quality Control and Improvement 393Learning Objectives 393Quality in Health Care 393Total Quality Management (TQM) and Continuous Quality Improvement (CQI) 397Six-Sigma 398Quality Measurement and Control Techniques 399Monitoring Variation through Control Charts 401Control Charts for Attributes 403Control Charts for Continuous Variables 407Investigation of Control Chart Patterns 412Process Improvement 415Tools for Investigating the Presence of Quality Problems and Their Causes 417Summary 421Key Terms 421Exercises 421Chapter 13: Project Management 431Learning Objectives 431The Characteristics of Projects 432Planning and Scheduling Projects 434The Network 436Critical Path Method (CPM) 437Probabilistic Approach 441Project Compression: Trade-Off s Between Reduced Project Time and Cost 448Project Management Applications in Clinical Settings: Clinical Pathways 461Summary 464Key Terms 464Exercises 464Chapter 14: Queuing Models and Capacity Planning 477Learning Objectives 477Queuing System Characteristics 479Capacity Analysis and Costs 494Summary 496Key Terms 497Exercises 497Chapter 15: Simulation 507Learning Objectives 507Simulation Process 507Monte Carlo Simulation Method 510Performance Measures and Managerial Decisions 516Excel-Based Simulation Templates with Performance Measures and Managerial Decisions 517Multiphase Simulation Model 520Summary 522Key Terms 522Exercises 522AppendixesAppendix A: Standard Normal Distribution 527Appendix B: Standard Normal Distribution 529Appendix C: Cumulative Poisson Probabilities 533Appendix D: t-Distribution 539References 541Index 549