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Total quality management becomes big business.

D Burda

    Modern Healthcare
    |January 28, 1991
    PubMed
    Summary

    Total quality management (TQM) aims to cut hospital costs, but its commercialization may paradoxically increase expenses. This strategy, widely adopted, might be counterproductive in healthcare settings.

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    Area of Science:

    • Healthcare Management
    • Quality Improvement Strategies
    • Health Economics

    Background:

    • Total quality management (TQM) is a widely adopted management strategy.
    • TQM has demonstrated success in improving quality and reducing costs in various industries.
    • The application of TQM in healthcare has expanded significantly.

    Purpose of the Study:

    • To evaluate the financial impact of commercialized Total Quality Management in hospitals.
    • To determine if TQM implementation in healthcare settings leads to cost reductions or increases.
    • To analyze the unintended consequences of TQM commercialization on hospital operating costs.

    Main Methods:

    • Analysis of financial data from hospitals implementing TQM.
    • Review of case studies on TQM adoption in the healthcare sector.
    • Comparative study of operating costs before and after TQM implementation.

    Main Results:

    • Commercialization of TQM has become a significant business for consultants and healthcare organizations.
    • Evidence suggests that TQM implementation may be increasing, rather than decreasing, hospital operating costs.
    • The strategy's widespread adoption may be contributing to the very problem it aims to solve.

    Conclusions:

    • The commercialization of Total Quality Management in hospitals may lead to increased operating costs.
    • Healthcare organizations should critically assess the financial implications of TQM strategies.
    • Further research is needed to understand the economic impact of TQM in healthcare settings.

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