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Related Experiment Videos

Total quality management issues in managed care

C P McLaughlin1, A D Kaluzny

  • 1Cecil G. Sheps Center for Health Services Research, University of North Carolina at Chapel Hill, USA.

Journal of Health Care Finance
|November 5, 1997
PubMed
Summary
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Total Quality Management (TQM) in healthcare parallels managed care

Area of Science:

  • Healthcare Management
  • Quality Improvement
  • Health Services Research

Background:

  • Total Quality Management (TQM) implementation in healthcare has coincided with the rise of managed care.
  • Key challenges include cost control overriding quality, decreased employee commitment, and a short-term focus.
  • Managed care emphasizes organizational learning over individual professional learning.

Purpose of the Study:

  • To explore the interaction between Total Quality Management (TQM) and managed care in healthcare.
  • To identify commonalities and fundamental differences between TQM and managed care principles.
  • To propose a shift in continuous improvement focus within healthcare.

Main Methods:

  • Comparative analysis of TQM and managed care principles.

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  • Identification of key issues arising from their parallel implementation.
  • Conceptual framework development for evolving continuous improvement.

    • Main Results:

    • Both TQM and managed care recognize process dynamics and the potential for improvement by institutions and clinicians.
    • Both support identifying and implementing best practices.
    • However, fundamental differences exist, particularly regarding the balance between cost control and quality.

    Conclusions:

    • Continuous improvement in healthcare needs to evolve beyond variation reduction.
    • Focus should shift towards facilitating rapid organizational learning.
    • Institutionalizing mass customization is crucial for health service delivery.