Survival through productivity improvement

There are dozens of additional case studies as well as success stories. The number of ways in which the information can be presented is limited only by the creativity of the user. In order of importance, the three principles remain 1. Convert all data to ratios. 2. Study emerging trends in the way the ratio changes over time. 3. Compare changes over time as well as static ratios to an outside source. To begin this program one needs to see what information is available at a particular hospital. If no other acceptable statistic is available use adjusted patient days. It is important that a productivity tracking system not be delayed until a system for statistical reporting is developed. It is also important to keep the system simple. Productivity monitoring is difficult because it requires a new perspective. We are used to using historical data and unique characteristics of a hospital in the budget process. Productivity gains require a detached perspective. Often only an outsider can identify some examples of overstaffing. The process is difficult, but it is not complicated. Productivity experts tell us we can produce a service faster, cheaper, or better, but not all three. Health care quality control ensures a better service. A standard cost accounting system for the health care industry may provide a less expensive service through better cost control. Productivity--the ratio of work output to resource input (health care costs)--can be increased. To make productivity improvement work the users must take the view of the entire institution rather than that of a department. Productivity measuring is necessary to ensure the survival of hospitals. This process could have saved many of the hospitals that were forced to close, and it could improve the financial health of many hospitals today.