Tables & Figures xiii
About the Authors xxi
Acknowledgments xxiii
About the Companion Website xxv
Introduction xxvii
Chapter-by-Chapter Revisions for the Fourth Edition xxix
Chapter 1: Introduction to Health Care Analytics and operations Management 1
Historical Background and the Development of Decision Techniques 2
The Health Care Manager and Decision-Making 3
Importance of Health Analytics: Information Technology (IT) and Decision Support Techniques 3
The Scope of Health Care Services and Recent Trends 3
Health Care Services Management 5
Distinctive Characteristics of Health Care Services 6
Patient Participation 6
Simultaneous Production and Consumption 6
Perishable Capacity 6
The Intangible Nature of Health Care Outputs 7
The High Levels of Judgment Called Upon, and the Heterogeneous Nature of Health Care 7
Big Data and Data Flow in Health Care Organizations 7
Summary 9
Exercises 17
References 20
Chapter 2: Predictive Analytics 21
Steps in the Predictive Analytics Process 22
Identify the Goal of the Predictive Analytics 22
Establish a Time Horizon 22
Select a Predictive Analytics Technique 22
Conduct the Prediction 22
Monitor Accuracy 23
Predictive Analytics Techniques 23
Judgmental Predictions 23
Time-Series Technique 24
Techniques for Averaging 25
Techniques for Trend 35
Predictive Techniques for Seasonality 49
Accuracy of Predictive Analytics 55
Prediction Control 56
Summary 59
Exercises 60
Chapter 3: Decision-Making in Health Care 79
The Decision Process 79
What Causes Poor Decisions? 81
The Decision Level and Decision Milieu 82
Decision-making under Uncertainty 82
Payoff Table 83
Decision-making Under Risk 87
What If Payoffs Are Costs? 92
The Decision Tree Approach 96
Analysis of the Decision Tree: Rollback Procedure 97
Sensitivity Analysis in Decision-making 99
Decision Analysis with Nonmonetary Values and Multiple Attributes 102
Dominance Procedure 103
Minimum Attribute Satisfaction Procedure 104
Most Important Attribute Procedure 104
Clinical Decision-making and Implications for Management 105
Summary 108
Exercises 109
Reference 132
Chapter 4: Facility Location 133
Location Methods 134
Costâ"Profitâ"Volume (CPV) Analysis 135
Factor Rating Methods 138
Multi-attribute Methods 141
Center of Gravity Method 144
Geographic Information Systems (GISs) in Health Care 147
Summary 151
Exercises 152
References 165
Chapter 5: Facility Layout 167
Product Layout 168
Process Layout 169
Process Layout Methods 169
Method of Minimizing Distances and Costs 173
Computer-based Layout Programs 173
Fixed-position Layout 175
Summary 179
Exercises 180
References 196
Chapter 6: Process Improvement: Reengineering and Lean Management 197
Reengineering 198
Lean Management 199
Define the Value 200
Map the Process 200
Identify Process Waste 200
Identify Improvements 201
Map the Future State 202
Implement Improvements 202
Repeat the Cycle 203
Work Design in Health Care Organizations 203
Work Design 203
Job Design 204
Work Measurement Using Time Standards 207
Work Measurement Using Work Sampling 214
Work Simplification 222
Worker Compensation 235
Summary 236
Exercises 236
References 251
Chapter 7: Staffing 253
Workload Management Overview 254
Establishment of Workload Standards and Their Influence on Staffing Levels 255
Patient Acuity Systems 256
The Development of Internal Workload Standards 261
Procedurally Based Unit Staffing 263
Acuity-based Unit Staffing 266
External Work Standards and Their Adjustments 270
Productivity and Workload Management 271
Summary 273
Exercises 273
References 281
Chapter 8: Scheduling 283
Staff Scheduling 283
The Eight-, Ten-, and Twelve-Hour Shiftsâ"Studies of Shift Patterns 285
Implementation of a New Work System 291
Surgical Suite Resource Scheduling 292
Operating Room Scheduling Systems 293
Assessment of Scheduling Alternatives 296
Estimation of Procedure Times 296
Summary 297
Exercises 298
References 299
Chapter 9: Productivity and Performance Benchmarking 301
Trends in Health Care Productivity: Consequences of Reforms and Policy Decisions 302
Productivity Definitions and Measurements 303
Productivity Benchmarking 304
Multifactor Productivity 304
Commonly Used Productivity Ratios 306
Hours per Patient Day (or Visit) 307
Adjustments for Inputs 308
Adjustments for Outputs 312
Case Mix Adjustments 314
Productivity Measures Using Direct Care Hours 316
The Relationships between Productivity and Quality in Hospital Settings 318
Summary of Productivity-Related Dilemmas in the Hospital Setting 320
Dealing with the Multiple Dimensions of Productivity: New Methods of Measurement and Benchmarking 321
Technical Efficiency 321
Economic Efficiency 322
Data Envelopment Analysis 323
Overview on Improving Health Care Productivity 326
Summary 327
Exercises 328
References 337
Chapter 10: Resource Allocation 339
Linear Programming 339
Maximization Models 341
Minimization Models 353
Integer Linear Programming 355
Summary 362
Exercises 363
References 368
Chapter 11: Supply Chain and Inventory Management 369
Health Care Supply Chain 369
Manufacturers/Suppliers 370
Flow of Materials 373
Supply Chain Management Issues for Providers 373
Contemporary Issues in Medical Inventory Management 374
Traditional Inventory Management 376
Requirements for Effective Inventory Management 377
Inventory Accounting Systems 378
Lead Time 379
Cost Information 379
Economic Order Quantity Model 380
Classification System 387
When to Reorder 389
Summary 390
Exercises 391
References 399
Chapter 12: Quality Control and Improvement 401
Quality in Health Care 401
Quality Experts 404
Quality Certifications and Awards 404
Total Quality Management (TQM) and Continuous Quality Improvement (CQI) 405
Six Sigma 406
Quality Measurement and Control Techniques 408
Process Variability 408
Monitoring Variation Through Control Charts 409
Control Charts for Attributes 411
Control Charts for Continuous Variables 415
Investigation of Control Chart Patterns 421
Process Improvement 424
Methods for Generating New Ideas 424
Tools for Investigating the Presence of Quality Problems and Their Causes 426
Summary 429
Exercises 432
References 441
Chapter 13: Project Management 443
The Characteristics of Projects 444
The Project Manager 444
Managing Teams and Relationships on Projects 445
Approaches to Project Management 446
Planning and Scheduling Projects 446
The Network 449
Critical Path Method (CPM) 450
Probabilistic Approach 454
The Case of a Dominant Critical Path 460
Project Compression: Trade-offs between Reduced Project Time and Cost 462
Project Management Applications in Clinical Settings: Clinical Pathways 475
Summary 477
Exercises 478
References 492
Chapter 14: Queuing Models and Capacity Planning 493
Queuing System Characteristics 495
Population Source 496
Number of Servers 496
Arrival Patterns 497
Service Patterns 499
Queue Characteristics 501
Measures of Queuing System Performance 502
Typical Infinite Source Models 502
Model Formulations 503
Capacity Analysis and Costs 510
Summary 512
Exercises 513
Chapter 15: Simulation 523
Simulation Process 523
Monte Carlo Simulation Method 526
Performance Measures and Managerial Decisions 532
Excel-Based Simulation Templates with Performance Measures and Managerial Decisions 533
Multiphase Simulation Model 536
Summary 538
Exercises 538
Appendixes
Appendix A: Standard Normal Distribution 543
Appendix B: Standard Normal Distribution 545
Appendix C: Cumulative Poisson Probabilities 549
Appendix D: t-Distribution 555
Index 557
