Identify two key strategic decisions made by your current team, department, or organization. How could those decisions have been enhanced by optimization models? Support your rationale with evidence from readings or external research.
Brittnee Hughes
Oct 21, 2023, 10:19 AM
Good Afternoon,
Linear programming can be used to develop models for health care organizations that can optimize distribution of resources through mathematical means (Mulholland et al, 2005). Two strategic decisions linear programming could assist hospital leaders would be optimizing financial outcomes for the hospital by assuring the best hospital patient mix and determining the number of nurses needed within each department.
A case mix index in a hospital setting helps the employees in the hospital know what to expect for revenue. A higher case mix index means a higher allocation of resources is required and more money is paid out or reimbursed. Case mix index is a measure of the average severity level of a hospital’s procedures and the average diagnosis related group (DRG) weight of a hospital’s inpatient discharges (Case Mix Index, 2019). This means that Medicare pays hospitals a lump sum of money based on their DRG which is an average cost of caring for similar type patients. Collaboration between the healthcare staff properly documenting all care and services provided, billing, finance and requesting the right DRG helps with the type of patients the hospital traditionally takes in.
Secondly, a shortage of nursing personnel can influence the care delivery system and nursing outcomes. Per experience, not having enough staff and heavy workload leads to job dissatisfaction and burn out. However, having too many staff can have financial impact through excessive labor cost. Linear programming could help fix this by fixing scheduling problems and quantifying services times and the number of nurses needed per hour. Analytical models may never capture all the characteristics of a hospital unit or the patients they care for, but many state and federal regulations require utilization of an evidenced based staffing model for hospitals.
Reference:
Keramati, Abbas & Khalili-Damghani, Kaveh & Apornak, Arash & Raissi, Sadigh. (2020). Optimization nursing employees in a hospital emergency department by using linear programming. International Journal of Management Concepts and Philosophy. 1. 1. 10.1504/IJMCP.2020.10032114.
Mulholland, M.W., Abrahamse, P. and Bahl, V. (2005). Linear programming to optimize performance in a department of surgery. Journal of American College of Surgeons, 200 (6), 861-868.
RD
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