Healthcare Analytics and Operations Management: History, Diagnosis, and Empirical Foundations

HILLARY A. LINHART is an experienced adjunct professor and lecturer of health care analytics and organization. YASAR A. OZCAN Professor Emeritus, Department of Health Administration, Virginia Common wealth University.

• Tables & Figures xiiiAbout the Authors xxiAcknowledgments xxiiiAbout the Companion Website xxvIntroduction xxviiChapter-by-Chapter Revisions for the Fourth Edition xxixChapter 1: Introduction to Health Care Analytics and operations Management 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 3Health Care Services Management 5Distinctive Characteristics of Health Care Services 6Patient Participation 6Simultaneous Production and Consumption 6Perishable Capacity 6The Intangible Nature of Health Care Outputs 7The High Levels of Judgment Called Upon, and the Heterogeneous Nature of Health Care 7Big Data and Data Flow in Health Care Organizations 7Summary 9Exercises 17References 20Chapter 2: Predictive Analytics 21Steps in the Predictive Analytics Process 22Identify the Goal of the Predictive Analytics 22Establish a Time Horizon 22Select a Predictive Analytics Technique 22Conduct the Prediction 22Monitor Accuracy 23Predictive Analytics Techniques 23Judgmental Predictions 23Time-Series Technique 24Techniques for Averaging 25Techniques for Trend 35Predictive Techniques for Seasonality 49Accuracy of Predictive Analytics 55Prediction Control 56Summary 59Exercises 60Chapter 3: Decision-Making in Health Care 79The Decision Process 79What Causes Poor Decisions? 81The Decision Level and Decision Milieu 82Decision-making under Uncertainty 82Payoff Table 83Decision-making Under Risk 87What If Payoffs Are Costs? 92The Decision Tree Approach 96Analysis of the Decision Tree: Rollback Procedure 97Sensitivity Analysis in Decision-making 99Decision Analysis with Nonmonetary Values and Multiple Attributes 102Dominance Procedure 103Minimum Attribute Satisfaction Procedure 104Most Important Attribute Procedure 104Clinical Decision-making and Implications for Management 105Summary 108Exercises 109Reference 132Chapter 4: Facility Location 133Location Methods 134Cost–Profit–Volume (CPV) Analysis 135Factor Rating Methods 138Multi-attribute Methods 141Center of Gravity Method 144Geographic Information Systems (GISs) in Health Care 147Summary 151Exercises 152References 165Chapter 5: Facility Layout 167Product Layout 168Process Layout 169Process Layout Methods 169Method of Minimizing Distances and Costs 173Computer-based Layout Programs 173Fixed-position Layout 175Summary 179Exercises 180References 196Chapter 6: Process Improvement: Reengineering and Lean Management 197Reengineering 198Lean Management 199Define the Value 200Map the Process 200Identify Process Waste 200Identify Improvements 201Map the Future State 202Implement Improvements 202Repeat the Cycle 203Work Design in Health Care Organizations 203Work Design 203Job Design 204Work Measurement Using Time Standards 207Work Measurement Using Work Sampling 214Work Simplification 222Worker Compensation 235Summary 236Exercises 236References 251Chapter 7: Staffing 253Workload Management Overview 254Establishment of Workload Standards and Their Influence on Staffing Levels 255Patient 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 273Exercises 273References 281Chapter 8: Scheduling 283Staff Scheduling 283The Eight-, Ten-, and Twelve-Hour Shifts—Studies of Shift Patterns 285Implementation of a New Work System 291Surgical Suite Resource Scheduling 292Operating Room Scheduling Systems 293Assessment of Scheduling Alternatives 296Estimation of Procedure Times 296Summary 297Exercises 298References 299Chapter 9: Productivity and Performance Benchmarking 301Trends in Health Care Productivity: Consequences of Reforms and Policy Decisions 302Productivity Definitions and Measurements 303Productivity Benchmarking 304Multifactor Productivity 304Commonly Used Productivity Ratios 306Hours per Patient Day (or Visit) 307Adjustments for Inputs 308Adjustments for Outputs 312Case Mix Adjustments 314Productivity Measures Using Direct Care Hours 316The Relationships between Productivity and Quality in Hospital Settings 318Summary of Productivity-Related Dilemmas in the Hospital Setting 320Dealing with the Multiple Dimensions of Productivity: New Methods of Measurement and Benchmarking 321Technical Efficiency 321Economic Efficiency 322Data Envelopment Analysis 323Overview on Improving Health Care Productivity 326Summary 327Exercises 328References 337Chapter 10: Resource Allocation 339Linear Programming 339Maximization Models 341Minimization Models 353Integer Linear Programming 355Summary 362Exercises 363References 368Chapter 11: Supply Chain and Inventory Management 369Health Care Supply Chain 369Manufacturers/Suppliers 370Flow of Materials 373Supply Chain Management Issues for Providers 373Contemporary Issues in Medical Inventory Management 374Traditional Inventory Management 376Requirements for Effective Inventory Management 377Inventory Accounting Systems 378Lead Time 379Cost Information 379Economic Order Quantity Model 380Classification System 387When to Reorder 389Summary 390Exercises 391References 399Chapter 12: Quality Control and Improvement 401Quality in Health Care 401Quality Experts 404Quality Certifications and Awards 404Total Quality Management (TQM) and Continuous Quality Improvement (CQI) 405Six Sigma 406Quality Measurement and Control Techniques 408Process Variability 408Monitoring Variation Through Control Charts 409Control Charts for Attributes 411Control Charts for Continuous Variables 415Investigation of Control Chart Patterns 421Process Improvement 424Methods for Generating New Ideas 424Tools for Investigating the Presence of Quality Problems and Their Causes 426Summary 429Exercises 432References 441Chapter 13: Project Management 443The Characteristics of Projects 444The Project Manager 444Managing Teams and Relationships on Projects 445Approaches to Project Management 446Planning and Scheduling Projects 446The Network 449Critical Path Method (CPM) 450Probabilistic Approach 454The Case of a Dominant Critical Path 460Project Compression: Trade-offs between Reduced Project Time and Cost 462Project Management Applications in Clinical Settings: Clinical Pathways 475Summary 477Exercises 478References 492Chapter 14: Queuing Models and Capacity Planning 493Queuing System Characteristics 495Population Source 496Number of Servers 496Arrival Patterns 497Service Patterns 499Queue Characteristics 501Measures of Queuing System Performance 502Typical Infinite Source Models 502Model Formulations 503Capacity Analysis and Costs 510Summary 512Exercises 513Chapter 15: Simulation 523Simulation Process 523Monte Carlo Simulation Method 526Performance Measures and Managerial Decisions 532Excel-Based Simulation Templates with Performance Measures and Managerial Decisions 533Multiphase Simulation Model 536Summary 538Exercises 538AppendixesAppendix A: Standard Normal Distribution 543Appendix B: Standard Normal Distribution 545Appendix C: Cumulative Poisson Probabilities 549Appendix D: t-Distribution 555Index 557