Must include a biblical integration and at least 2
peer-reviewed source citations, in addition to the course textbook, in current
APA format.
Course Textbook: Langabeer
II, J. R., & Helton, J. (2021). Health care operations management (3rd
ed.). Jones & Bartlett Learning. Chapters 13-14.
With the rising cost of healthcare,
there has been an increasing focus on productivity. Productivity is the
comparison between the cost of inputs and outputs (Langabeer & Helton,
2021). Measuring productivity is important because it will inform hospital
administrators and operational leaders if changes are needed within their
operating ecosystem. If productivity is low this could be an indication of
serious problems that need to be addressed. Low productivity could be an
indication there needs to be a change in the organizationâs culture, employees,
or technology. Conversely, an organization that has high productivity would
indicate that the morale is high. Studies have shown that when morale is high
employees are less likely to leave their job for another company. In the long
run, this saves the organization money in recruiting, onboarding, and training
fees. To understand how inputs and outputs correlate with each other, it is
helpful to provide an example. The number of doctors and nurses working in a
hospital is an example of an input and the number of patients attended is an
example of the output. A measure of productivity in this scenario would be the
cost of clinicians per diem for the day and the amount that the hospital was
able to bill insurance companies in procedures for the day from the number of
patients those physicians saw.
Monitoring productivity is an important
component of financial accountability. A healthcare organization needs to
ensure that inputs can be measured to track the productivity âOutputs capture
quantity and quality of care for hospital patients; inputs include staff,
equipment, and capital resources applied to patient careâ (Castelli et al.,
2014 p. 243). For a healthcare organization to make a profit the output needs
to outweigh the input. It can be argued that one of the reasons that healthcare
is 19% of the USâs GDP is that productivity is not properly monitored or
managed. Many argue that healthcare organizations do not control their
administrative expenses and hire too much labor (input) that is not necessary
to meet the needs or match the output. Hiring labor has been the incorrect
solution to fixing healthcare problems. When looking to increase outputs, a
healthcare administrator should look at process optimization or improvement
while maintaining or reducing input would have a positive financial return.
Productivity and performance are often used
interchangeably, and incorrectly. As stated earlier in my post, productivity
focuses on the output. Performance, however, measures the execution of the task
in alignment with the goals of the organization through operational key
performance indicators (KPIs) (Bisogno et al., 2016). Measuring productivity
has the simple goal of maximizing the output with the most minimal input
possible. It does not take into consideration important factors such as
quality. The difference with performance is that measures how well you are
performing and if you are accomplishing the organizationâs goals and
objectives. As a healthcare administrator is important that you do not associate
high productivity with high performance.
It is not always easy to
identify truth from fiction. It is always easier to believe the story that is
the one that you want to hear that is positive but as a healthcare
administrator, you have to be able to address the truth even when it is not
good news. As Jesus Christ said “Ye shall know the truth, and the truth
shall make you free” John 8:32 (ESV).
Must include a biblical integration and at least 2 peer-reviewed source citation
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