Assignment: Metropolitan Area

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Assignment: Metropolitan Area

Assignment: Metropolitan Area

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Healthcare organizations that have adopted a proactive strategy have developed multiple meas- ures of quality, including direct and indirect measures that go beyond the minimum measures required by accrediting organizations (Conrad and Blackburn 1985). Direct measures of quality assume that the organization can define and measure quality itself. These measures include the following:

MINI-CASE STUDY✓

Suppose➤you➤were➤recently➤hired➤to➤manage➤a➤new➤primary➤care➤

physician’s➤office.➤The➤physician’s➤office➤will➤be➤located➤down-

town➤in➤a➤major➤metropolitan➤area➤with➤significant➤competition.➤

You➤need➤to➤establish➤the➤organization’s➤purpose➤and➤financial➤

objectives.➤What➤items➤should➤you➤consider➤in➤establishing➤the➤

organization’s➤purpose?➤What➤organizational➤purpose➤should➤

you➤suggest➤to➤the➤physician➤owners?➤What➤should➤the➤financial➤

objectives➤of➤the➤organization➤be?

00_Nowicki (2339) Book.indb 10 5/17/17 10:57 AM

C h a p t e r ➤ 1 : ➤ F i n a n c i a l ➤ M a n a g e m e n t ➤ i n ➤ C o n t e x t 1 1

1. Goal-based measures assess quality by the progress made toward the goals of the strategic and operating plans. The key advantage of goal-based measures is that they focus attention on success or failure.

2. Responsive measures assess quality by customer opinion. The key advantage of responsive measures is that they understand quality from the customer’s point of view.

3. Decision-making measures assess quality by evaluating decisions. The key advantage of decision-making measures is that they direct accountability to the decision maker.

4. Connoisseurship measures allow quality to be assessed by expert opinion, such as accreditation. The key advantage of connoisseurship measures is that they inspire high credibility.

Indirect measures of quality assume that the organization cannot define and measure quality itself but can define and measure the results of quality. These measures include the following:

1. Resource measures assume that price reflects quality. The key advantage of resource measures is that they provide quantitative data that are readily available.

2. Outcome measures assume that results reflect quality. The key advantage of outcome measures is the emphasis on results.

3. Reputational measures assume that public perception reflects quality. The key advantage of reputational measures is that they produce ratings for the public.

4. Value-added measures assume that process reflects quality. The key advantage of value-added measures is that, after adjusting for input and output, they focus on process, which the organization can control.

reActIve strAtegy

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