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Management matters: technology succeeds when management innovates.

F Alemi

    Frontiers of Health Services Management
    |February 24, 2001
    PubMed
    Summary
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    Despite technological advancements, healthcare costs persist due to organizational and management issues. Successful technology adoption requires significant non-technical changes in business practices and system organization for improved healthcare delivery.

    Area of Science:

    • Health Informatics
    • Healthcare Management
    • Information Systems in Healthcare

    Background:

    • The widespread adoption of computer technology and the internet in healthcare has not led to the expected decrease in costs or improvement in service quality.
    • Despite evidence of cost-saving potential, healthcare organizations have struggled to implement and benefit from computer services effectively.
    • Persistent cost increases and quality issues highlight a disconnect between technological availability and successful integration into healthcare systems.

    Discussion:

    • The article argues that the success of technology in healthcare is contingent on fundamental changes in business operations and system organization, rather than technology itself.
    • Key non-technical changes required include adapting to evolving patient expectations, redefining clinicians' roles and training, restructuring healthcare financing and service bundling, and managing capital costs.

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  • Management innovations are identified as the critical determinant of success or failure when implementing new technologies in the healthcare sector.

    • Key Insights:

    • Technology alone is insufficient; successful implementation hinges on complementary changes in organizational practices and management strategies.
    • Failure to modify business practices and organizational systems results in the underutilization or ineffective use of available healthcare technologies.
    • Transforming the fundamental nature of healthcare business operations is essential to realize the full promise of technology in the industry.

    Outlook:

    • Future success in healthcare technology integration depends on proactive management and a willingness to innovate beyond technological adoption.
    • Healthcare organizations must prioritize systemic and managerial reforms to leverage technology for cost reduction and service enhancement.
    • A holistic approach, integrating technological advancements with strategic organizational and management modifications, is crucial for the future of healthcare.