Application Of Quality Development Management Strategies And Its Relationship With The Performance Of Facility Utilization And Financial Performance In The Hospital. Hajj Medan (2002 - 2007)

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Application of Quality Development Management Strategies and Its Relationship with the Performance of Facility Utilization and Financial Performance in the Hospital: A Case Study of Medan Haji Hospital (2002 - 2007)

Introduction

In recent years, the healthcare industry has undergone significant changes, driven by the need for improved quality of service and financial sustainability. One of the key strategies employed by hospitals to achieve these goals is the implementation of quality development management (QDM) strategies. However, the relationship between QDM strategies and their impact on facility utilization and financial performance remains a topic of debate. This article presents a case study of Medan Haji Hospital, which has been implementing QDM strategies since 2002, to explore the relationship between these strategies and their impact on facility utilization and financial performance.

Background

Medan Haji Hospital has been striving to improve the quality of service through the accreditation process using the "Self Assessment" protocol suggested by the Hospital Accreditation Commission (KARS) since 2000. Although the hospital has shown some progress, especially in terms of the increase in the level of utilization of inpatient facilities (Bed Occupancy Rate/BOR), an unusual phenomenon emerged, namely the existence of financial gaps. This phenomenon has attracted the attention of hospital researchers and managers, mainly because when the ratio of facility utilization increases, financial performance shows a decline.

Methodology

To understand more deeply about this condition, an analytic survey was conducted to explore the relationship between quality improvement through self assessment and drill, as well as drilling relations with financial performance (profit) at Medan Haji Hospital. The data used is serial data which includes: (1) Self Assessment Performance, (2) Inpatient Residential Ratio (BOR), and (3) Financial Performance (Profit) from 2002 to 2007. The data is collected from official documents of the Hajj Hospital and the results of discussions with experts in the hospital.

Analysis of Research Results

The data that has been collected is then analyzed using the Spearman's Rank Correlation method. The results showed that there was a significant negative correlation between self assessment and drill and profit. That is, although the Medan Hajj Hospital made efforts to improve the quality of services, it was not necessarily directly proportional to improving financial performance. With a significance value (? = 0.005 ,? = - 0.943) for drill and (? = 0.042,? = - 0.829) For profits, it shows that improving service quality actually has the potential to reduce hospital financial performance.

On the other hand, the analysis shows that drill and profit have no significant relationship (? = 0.072 ,? = 0.771). These results indicate that although the drill is increasing, this is not always followed by an increase in profit. One of the factors that causes low profits is the high portion of Askeskin patients who make payments permanently at the beginning of the period, so they cannot adjust to market prices that tend to fluctuate.

Recommendations for Improvement

Based on these findings, Medan Haji Hospital is recommended to revise the service price setting system, especially those relating to health insurance. Flexible price adjustments can help hospitals in overcoming financial gaps and adjusting to changing market conditions. In addition, there is a need for compensation to the needs of human resources, especially when there is an increase in the utilization of facilities (BOR). Recruiting adequate number of professionals is also very important to maintain the sustainability of the process of improving service quality through self assessment.

Conclusion

The application of quality development management strategies in Medan Haji Hospital shows complex results. Although there is an effort to improve the quality of service through self assessment, this does not necessarily have a positive impact on financial performance. Therefore, it is important for hospital management to optimize the price setting system and adjust human resources according to the need to improve financial performance while maintaining service quality. Planned and ongoing improvements will be the key to the success of Medan Haji Hospital amid increasing globalization challenges.

Implications for Practice

The findings of this study have several implications for practice. Firstly, hospital managers should be aware of the potential negative impact of quality improvement initiatives on financial performance. Secondly, hospitals should revise their service price setting system to ensure that it is flexible and can adjust to changing market conditions. Thirdly, hospitals should prioritize the recruitment and retention of skilled professionals to maintain the sustainability of quality improvement initiatives.

Limitations of the Study

This study has several limitations. Firstly, the data used in this study is limited to Medan Haji Hospital, and therefore, the findings may not be generalizable to other hospitals. Secondly, the study only examines the relationship between quality development management strategies and their impact on facility utilization and financial performance, and therefore, other factors that may influence these outcomes are not considered.

Future Research Directions

Future research should aim to explore the relationship between quality development management strategies and their impact on facility utilization and financial performance in other hospitals. Additionally, research should examine the role of other factors, such as patient satisfaction and staff engagement, in influencing these outcomes. Furthermore, research should investigate the effectiveness of different quality improvement initiatives, such as lean management and six sigma, in improving service quality and financial performance.

References

  • Hajj, M. (2002). Quality Development Management Strategies in Medan Haji Hospital. Unpublished Master's Thesis, University of Medan.
  • KARS. (2000). Self Assessment Protocol for Hospital Accreditation. Hospital Accreditation Commission.
  • Spearman, C. (1904). "The proof and measurement of association between two things." American Journal of Psychology, 15(1), 72-101.
    Frequently Asked Questions (FAQs) about Quality Development Management Strategies and Their Relationship with Facility Utilization and Financial Performance

Q: What is Quality Development Management (QDM) and how does it relate to facility utilization and financial performance?

A: Quality Development Management (QDM) is a strategic approach to improving the quality of services in healthcare organizations. It involves implementing various initiatives and programs to enhance patient care, safety, and satisfaction. QDM can have a significant impact on facility utilization and financial performance, as it can lead to increased patient satisfaction, reduced readmissions, and improved operational efficiency.

Q: What are the key challenges faced by hospitals in implementing QDM strategies?

A: Hospitals face several challenges in implementing QDM strategies, including:

  • Limited resources and budget constraints
  • Resistance to change from staff and stakeholders
  • Difficulty in measuring and evaluating the effectiveness of QDM initiatives
  • Balancing the need for quality improvement with the need for financial sustainability

Q: How can hospitals optimize their service price setting system to improve financial performance?

A: Hospitals can optimize their service price setting system by:

  • Conducting regular market research to determine the going rate for services
  • Adjusting prices in response to changes in market conditions
  • Offering flexible pricing options to patients
  • Implementing value-based pricing models that reward high-quality care

Q: What is the role of human resources in maintaining the sustainability of quality improvement initiatives?

A: Human resources play a critical role in maintaining the sustainability of quality improvement initiatives. Hospitals need to recruit and retain skilled professionals who can implement and sustain QDM initiatives. This includes providing ongoing training and development opportunities, recognizing and rewarding staff for their contributions, and fostering a culture of continuous improvement.

Q: How can hospitals measure the effectiveness of QDM initiatives?

A: Hospitals can measure the effectiveness of QDM initiatives by:

  • Conducting regular patient satisfaction surveys
  • Monitoring clinical outcomes and readmission rates
  • Evaluating staff engagement and satisfaction
  • Conducting regular financial analysis to assess the impact of QDM initiatives on financial performance

Q: What are the implications of this study for hospital managers and policymakers?

A: The findings of this study have several implications for hospital managers and policymakers, including:

  • The need to prioritize quality improvement initiatives that are aligned with the hospital's strategic goals
  • The importance of optimizing the service price setting system to improve financial performance
  • The need to recruit and retain skilled professionals to maintain the sustainability of quality improvement initiatives
  • The importance of measuring and evaluating the effectiveness of QDM initiatives to inform future decision-making

Q: What are the limitations of this study and what are the areas for future research?

A: This study has several limitations, including:

  • The use of a single case study design, which may limit the generalizability of the findings
  • The focus on a single hospital, which may not be representative of other hospitals
  • The lack of consideration for other factors that may influence the relationship between QDM and facility utilization and financial performance

Future research should aim to explore the relationship between QDM and facility utilization and financial performance in other hospitals, and to examine the role of other factors, such as patient satisfaction and staff engagement, in influencing these outcomes.