Healthcare: Quality vs. Cost
The fact that the physical therapy clinic where I used to work has recently lost three of the six technicians, it will not open management’s eyes to the need to re-evaluate some of their processes. It will not have any effect on the low pay they receive or the long hours they work. They will not take notice of the necessity to improve the worker to patient ratio or the poor lack of continuing job related education needed by their front line workers. Obviously the clinic is in business to make money but when it has an overwhelming, negative effect on the staff and the patients, the quality of service is severely impacted. There has to be a balance where ...view middle of the document...
That is because it really is rare to find quality medical care these days, in the world of optimizing profits and cutting back services. To compute direct customer loss, let’s assume that 100 customers experienced deficient service and based on information obtained from the research, about 70 customers (loss=69.5 percent x 100) will be unlikely to patronize the same organization again. In addition, for the same 100 customers who have experienced deficient service, about 75 of them (74.5 percent x 100) will go on to tell on average nine family members and friends about their experiences. This will translate into about 675 potential customers who will get to hear about the unhappy experiences. From the pool of 675 potential customers of the organization, about 465 of them will probably not patronize the organization at all based on work of mouth. (Lee, P., Khong, P. and Ghista, D.)
Healthcare providers need to have continuing education, reasonable patient to worker ratios, and hour limitations to maintain standards of treatment. How else will we maintain continued growth in the healthcare career field? Medical services are forever in demand by the public but it is not enough to just fill the positions with the first qualified, warm body that applies for the job. Quality care comes from quality workers. If people are indeed the most important human resource, then businesses need to make the commitment and investment in those resources. Once there are quality people in place, the business will have the best opportunity to reach its maximum growth potential. Of course that is just one piece of the big picture.
Business growth in the healthcare industry appears to be a balance of what is referred to as the Iron Triangle. The Iron Triangle is made up of cost, quality and accessibility. If one of those three parts of the triangle are tampered with then one or both of the other two will be affected. Cost is a major concern from a business standpoint but without quality people, equipment, facilities, and programs, companies will lose profits in the long run. Of all of the important aspects that a successful business to consider, quality has to be maintained.
Functional control systems have to be in place to maintain a quality operation. Control systems insure against employee time card theft, product wastefulness, lack motivation of and teamwork. All of which take place daily in businesses everywhere. “If you take care of the pennies, the dollars will take care of themselves”. The clinic director at Tidewater Physical Therapy is a working director and she has no idea that all of this is going on because she is just too busy to keep trace or sit back and watch the chaos going on all around her. She has a pretty good handle on the output control of the clinic but has lost control of behavior and the organizational culture.
One of the major selling points the physical therapy clinic is quality patient care. Part of that is based...