Health Care / Health Care Management M Hospitals & HealtH care H a e r … Dr. David Edward Marcinko and Professor Hope Rachel Hetico bring their vast health t c care experience along with additional national experts to provide a health care model-based ic in o k OrganizatiOns framework to allow health care professionals to utilize the checklists and templates to evaluate o their own systems, recognize where the weak links in the system are, and, by applying the well- illustrated principles, improve the efficiency of the system without sacrificing quality patient care. H —James Winston Phillips, MD, MBA, JD, LLM o Management Strategies, Operational Techniques, s … a must-read for any physician and other health care provider to understand the multiple, and Tools, Templates, and Case Studies p increasingly complex, interlocking components of the U.S. health care delivery system, whether i they are employed by a hospital system or manage their own private practices. The operational t principles, methods, and examples in this book provide a framework applicable on both the large a organizational and smaller private practice levels and will result in better patient care. l —Richard Berning, MD, Pediatric Cardiology s & Drawing on the expertise of decision-making professionals, leaders, and managers in health care organizations, Hospitals & Health Care Organizations: Management Strategies, Operational H Techniques, Tools, Templates, and Case Studies addresses decreasing revenues, increasing e costs, and growing consumer expectations in today’s increasingly competitive health care market. a l Offering practical experience and applied operating vision, the authors integrate Lean managerial t applications and regulatory perspectives with real-world case studies, models, reports, charts, H tables, diagrams, and sample contracts. The result is an integration of post PP-ACA market c competition insight with Lean management and operational strategies vital to all health care administrators, comptrollers, and physician executives. The text is divided into three sections: a r (I) Managerial Fundamentals e (II) Policy and Procedures O (III) Strategies and Execution r Using an engaging style, the book is filled with authoritative guidance, practical health care– g centered discussions, templates, checklists, and clinical examples to provide you with the tools to build a clinically efficient system. Its wide-ranging coverage includes hard-to-find topics a such as hospital inventory management, capital formation, and revenue cycle enhancement. n Health care leadership, governance, and compliance practices like OSHA, HIPAA, Sarbanes– Edited by i Oxley, and emerging ACO model policies are included. Health 2.0 information technologies, z EMRs, CPOEs, and social media collaboration are also covered, as are 5S, Six Sigma, and other Dr. David Edward Marcinko, a MBa, CMP™ logistical enhancing flow-through principles. The result is a must-have “how-to” book for all t industry participants. Prof. Hope rachel Hetico, i rn, MHa, CMP™ O n Foreword by James Winston Phillips, MD, MBa, JD, LLM K13750 s ISBN: 978-1-4398-7990-0 90000 www.crcpress.com 9 781439 879900 www.productivitypress.com K13750_COVER_final_rev.indd 1 6/14/12 2:28 PM HOSPITALS & HEALTH CARE ORGANIZATIONS Management Strategies, Operational Techniques, Tools, Templates, and Case Studies HOSPITALS & HEALTH CARE ORGANIZATIONS Management Strategies, Operational Techniques, Tools, Templates, and Case Studies Edited by Dr. David Edward Marcinko, MBA, CMP™ Prof. Hope Rachel Hetico, RN, MHA, CMP™ Foreword by James Winston Phillips, MD, MBA, JD, LLM CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2013 by iMBA, Inc. CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20120611 International Standard Book Number-13: 978-1-4398-7991-7 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the valid- ity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. 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Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com It is an incredible privilege to edit Hospitals & Health Care Organizations: Management Strategies, Operational Techniques, Tools, Templates, and Case Studies. One of the most rewarding aspects of my career has been the personal and professional growth acquired from interacting with protean professionals of all stripes. The mutual sharing and exchange of practice-management ideas stimulate the mind and fosters advancement at many levels. Creating this text was a significant effort that involved all members of our firm. Over the past year, we interfaced with numerous outside private and public companies—as well as the Internet blogosphere—to discuss its contents. Although impossible to list every person or company that played a role in its production, there are several people we wish to thank for their support and encouragement: Kristine Mednansky—Senior Editor, Business Improvement (Health Care Management); Karen Sober—Editorial Assistant, and Richard O’Hanley—Acquiring Editor, all of Taylor & Francis Group. Any accolades are because of them. All other defects are my own. Of course, this text would not have been possible without the support of our families, whose daily advocacy encouraged all of us to completion. It is also dedicated to our clients and contributing authors, who crashed the development life cycle in order to produce time-sensitive material in an expedient manner. The satisfaction we enjoyed from working with them is immeasurable. David Edward Marcinko Contents Foreword ...........................................................................................................................................ix Preface...............................................................................................................................................xi Disclaimer ......................................................................................................................................xiii Acknowledgments ............................................................................................................................xv Editors ............................................................................................................................................xvii Contributors ....................................................................................................................................xix Section i Managerial Fundamentals Chapter 1 Overview of Operations in Health Care Organizations Today: Understanding Trends and Management Objectives ............................................................................3 David Edward Marcinko and Hope Rachel Hetico Chapter 2 Market Competition in Modern Health Care Management: Surveying the Current Ecosystem .....................................................................................................29 Robert James Cimasi Chapter 3 Capital Formation Techniques for Hospitals: Institutional Types, Essentiality, and Governance ..........................................................................................................81 David Edward Marcinko and Calvin W. Wiese Chapter 4 Understanding Cash Flows and Medical Accounts Receivable: Monitoring, Management, and Improvement ...............................................................................111 David Edward Marcinko and Karen White Chapter 5 Appreciating the Impact of IBNR Claims on Hospital Revenue Cycles: Monitoring, Management, and Enhancement ..........................................................129 David Edward Marcinko and Karen White Section ii Policy and Procedures Chapter 6 Health Care Workplace Violence Prevention: Strategies for Risk Reduction and Prevention .................................................................................................................153 Eugene Schmuckler, David Edward Marcinko, and Hope Rachel Hetico Chapter 7 Implications of the USA PATRIOT and Sarbanes–Oxley Acts for Hospitals: Operational Policies for Affected Health Care Organizations.................................175 David Edward Marcinko and Hope Rachel Hetico vii viii Contents Chapter 8 Collaborating to Enhance Performance in a Changing Health Care Landscape: Opportunities for Widespread Policy and Outcomes Improvement ........................195 Jennifer Tomasik Chapter 9 Tracking Medical Procedures with Outcomes Reporting: Techniques of Benchmarking and Improvement .............................................................................207 Brent A. Metfessel Chapter 10 Health Information Technology Security and Privacy: Rules, Regulations, Penalties, and Recovery Efforts ...............................................................................227 Carol S. Miller Section iii Strategies and execution Chapter 11 Health Information Technology Execution and Use: Exchanging Patient Data—Benefits and Rewards ...................................................................................265 Carol S. Miller Chapter 12 Medical Supply Chain Inventory Management Strategies: Data Capture, Just- in-Time Strategies, and Economic Order Quantity Analysis ...........................291 David J. Piasecki and David Edward Marcinko Chapter 13 Lean Six Sigma Applications for Health Care Delivery Improvement: Gaining and Maintaining a Competitive Edge.......................................................................315 Mark Mathews Chapter 14 Hospital Flow-Through Efficiency, Operations, and Logistics: Achieving Leaner and Faster Organizations with Sustainable Improvements ..........................349 Denice Soyring Higman, Adam Higman, and Dragana Gough Chapter 15 Medical Career Leadership and Development: Transformational Strategies for the Next Generation of Physician Executives...........................................................367 Eugene Schmuckler, David Edward Marcinko, and Hope Rachel Hetico