Healthcare Management

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Chapter 14: Managing Performance and Quality

1

Objectives

Understand the importance of improving organizational performance through performance management, program evaluation, and continuous quality improvement (CQI)

Be able to explain the Turning Point model of performance management

Be able to explain a logic model and how it can be used to evaluate and improve programs

Remove “ing” on the first bullet

Objectives (continued)

Be able to define quality from the perspective of health care delivery and from the perspective of public health

Understand CQI methods and techniques such as process maps, the Plan-Do-Check-Act cycle, Lean, and Six Sigma

Outline

Performance Management

Evaluating Programs

Continuous Quality Improvement

Defining Quality

Overview of Quality in the United States

Six Sigma

Lean

Plan-Do-Check-Act

Performance Management

Defined as “a framework for organizational evaluation and improvement.” Used widely in both the public health and private health sectors.

Performance Management in Public Health

Turning Point model:

Performance standards

Performance measurement

Quality improvement process

Reporting progress

Performance Management in Health Services Delivery

Accreditation (Joint Commission) standards

Baldrige Criteria for Performance Excellence

Awards the Malcolm Baldrige National Quality Award, the highest level of national recognition for performance improvement

Criteria include: leadership; strategic planning; customer focus; measurement, analysis, and knowledge management; workforce focus, process management, and results

Performance Management System

Uses performance standards, measures employee performance and output, regularly reports progress, and includes a quality improvement program

Example of measures: balanced scorecard –

employee satisfaction

financial outcomes

internal efficiency and quality

client satisfaction

Evaluating Programs

Systematic assessment of the operation and/or outcomes of a program, compared to a set of standards, in order to improve the program

Two types of evaluation

Formative

Summative

Formative Evaluation

Used to determine whether a service or program is evolving as intended

Involves the collection of evidence during the creation and implementation of a program

Allows for revision that can improve a program as it is in the development phase

Summative Evaluation

Directed towards a general assessment of the degree to which the outcomes have been attained over the entire course of the program

Used to determine the merit of a program by evaluating it when at full strength

Results in a final judgment about a program

Framework for Program Evaluation

Program Evaluation Framework (Centers for Disease Control and Prevention):

Assess

Program Implementation: what took place?

Program Effectiveness: did it improve health outcomes?

Program Accountability: cost-benefit, cost effectiveness

Logic Models

A logic model is a graphical representation of the logical relationships among the resources that go into a program, the activities the program undertakes, and the benefits or changes that occur.

Depicts how program goals, activities, and expected outcomes link together in a chain of reasoning

Continuous Quality Improvement

Use of deliberate improvement techniques, responding to health needs, and focusing on activities that improve health

Underuse, Overuse, and Misuse

Underuse: program or service has not been fully or optimally utilized

Overuse: program or service in which demand exceeds supply, or when potential risks outweigh potential benefits

Misuse: otherwise appropriate program or service is provided in ways that result in undesirable complications or outcomes

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Defining Quality

A single definition of ‘quality’ does not exist due to varying perspectives of stakeholders

Institute of Medicine: “the degree to which health services for individuals and populations increase the likelihood of desired health outcomes and are consistent with current professional knowledge”

US DHHS: “the degree to which policies, programs, services, and research for the population increases desired health outcomes and conditions in which the population can be healthy”

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Defining Quality (continued)

6 Aims of the Health Services Delivery System (STEEEP)

Safe (S)

Timely (T)

Effective (E)

Efficient (E)

Equitable (E)

Patient-centered (P)

9 Aims of the Public Health System

Population-centered

Equitable

Proactive

Health promoting

Risk-reducing

Vigilant

Transparent

Effective

Efficient

Process

All quality improvement systems analyze the processes followed in order to improve them

A process is a series of steps designed to produce activities associated with a desired outcome. A process has a beginning and end.

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Process Map

Process Map – visual diagram that reflects the steps associated with a process or activity

Process maps do not intend to show all steps but only those that have the greatest influence on a process

Consider deleting period on number 4

Process Map

Process maps can identify 4 types of problems:

Disconnect – poor transfers of work from one group to another

Bottleneck – a point in the process where volume overwhelms capacity

Redundancy – repeated activities at two or more points in the process (may be beneficial if designed)

Rework – occurs when work must be repeated.

Overview of Quality in the U.S.

CQI experts estimate only 15 percent of quality problems can be attributed to people; the rest are due to flawed processes

Health services often fail to deliver potential benefits

Public health services, while underfunded relative to clinical services (97% of health care expenditures are devoted to treating sick people; 3% on primary prevention), can benefit from quality improvement as well

Overview of Quality in the U.S. (continued)

CQI was introduced in U.S. clinical health care in the 1990s

CQI is relatively new in public health

Core processes vs. support processes

Six Sigma

An approach designed to reduce the incidence or number of defects or errors associated with a process, with a goal of 3.4 errors per 1 million operations

5 Steps:

Define

Measure

Analyze

Improve

Control

Lean

A method intended to eliminate waste in processes

Also known as Toyota Production System

Gets rid of work that does not add value; minimizes downtime and smooths work flow

Plan-Do-Check-Act

A common QI method used to implement quality improvement projects

Plan- Gather and analyze specific data and observations.

Do- Test appropriate solutions to the situation.

Check- Compare results of tests through measurements and analysis.

Act- Make the change permanent. Be prepared to go through PDCA again if needed.