Implementing system dynamics in hospital services to improve operational efficiency: An empirical research study

Area of Science:

• Healthcare Management
• Operations Research
• System Dynamics Modeling

Background:

• Public general hospitals face complex operational challenges impacting efficiency.
• Resource allocation, patient flow, and policy interventions are critical factors in hospital performance.

Purpose of the Study:

• To investigate public general hospital operational efficiency using a system dynamics (SD) model.
• To analyze the impact of resource allocation, patient flow, and policy interventions on hospital performance.
• To explore interactions between human resources, financial subsidies, and patient visitation rates.

Main Methods:

• Developed a system dynamics (SD) model to simulate hospital operations.
• Incorporated data on hospital capacity, staffing, financial inputs, and patient flow dynamics.
• Analyzed key performance metrics such as bed occupancy rate (BOR), average length of stay (ALOS), cost per visit, and workload index under various policy scenarios.

Main Results:

• Increased fiscal subsidies (scenario 2) improved operational efficiency, reducing ALOS, staff workload, and cost per visit.
• Scenarios with human resource cuts or rapid patient growth led to adverse feedback loops, undermining hospital performance.
• System dynamics modeling identified critical thresholds and feedback mechanisms influencing hospital efficiency.

Conclusions:

• The SD model effectively captures dynamic interactions in hospital operations for policy assessment.
• Enhanced government funding is the most significant driver of improved hospital operational efficiency.
• Demand surges and resource reductions create system strain, necessitating careful policy design to avoid performance trade-offs.