Measuring healthcare productivity – from unit to system level

Abstract

Purpose - Healthcare productivity is a growing issue in most Western countries where healthcare expenditure is rapidly increasing. Therefore, accurate productivity metrics are essential to avoid sub-optimization within a healthcare system. The purpose of this paper is to focus on healthcare production system productivity measurement. Design/methodology/approach - Traditionally, healthcare productivity has been studied and measured independently at the unit, organization and system level. Suggesting that productivity measurement should be done in different levels, while simultaneously linking productivity measurement to incentives, this study presents the challenges of productivity measurement at the different levels. The study introduces different methods to measure productivity in healthcare. In addition, it provides background information on the methods used to measure productivity and the parameters used in these methods. A pilot investigation of productivity measurement is used to illustrate the challenges of measurement, to test the developed measures and to prove the practical information for managers. Findings - The study introduces different approaches and methods to measure productivity in healthcare. Practical implications - A pilot investigation of productivity measurement is used to illustrate the challenges of measurement, to test the developed measures and to prove the practical benefits for managers. Originality/value - The authors focus on the measurement of the whole healthcare production system and try to avoid sub-optimization. Additionally considering an individual patient approach, productivity measurement is examined at the unit level, the organizational level and the system level.

Supporting Efficiency Improvement in Public Health Systems: a Rapid Systematic Review of Current Evidence

“…Stakeholders are unlikely to be motivated to engage in efficiency improvement solely because of cost-effectiveness (70) . Local management priorities can be aligned across the system by linking unit manager goals, measures and incentives to those of the Organization, thereby promoting efficiencies at a system level and moving away from isolated pockets of improvement (71) . Central bodies can sponsor collaborative networks to share successful practice and performance informa-tion, with links to improved patient outcomes and costs while also linking researchers with implementers and beneficiaries (72) .…”

Untitled

“…The point we wish to make at this stage is that public sector productivity measurement is a complex issue, which depends not only on who defines it, but also on factors such as the public sector area in question and the level of analysis. For the purposes of exemplification, Figure 1 depicts productivity measurement at unit, organisational, and system level in the healthcare area, as identified by Kämäräinen, Peltokorpi, Torkki, and Tallbacka (2016).…”

“…Source: Taken from Kämäräinen, Peltokorpi, Torkki, and Tallbacka (2016). Private sector organisations generally pursue profit maximization.…”

Correlation of Performance Indicators and Productivity: A Cross Sectional Study of Emergency Departments in Tehran, Iran During Year 2016

“…One of the main goals for any organizations, such as health care organizations, is to achieve productivity and human resources that play a vital role in such organizations (3).…”