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Supply chain management in hospital by samuel mary and yang
Supply chain management in hospital : a case study
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Supply Chain Risk Management in Healthcare
How in healthcare Supply Chain Risk Management Plays key role in Decision Making:
Being from a Healthcare background, I am exploring in health care supply chain risk management currently facing the challenges in the real world.
I have been broadly focused in Risk Management in Healthcare. The supply chain generally refers to the assets needed to deliver products or services to a consumer or to patients. In healthcare, overseeing the Supply Chain Management System is typically a very complex and it’s a divided process. Healthcare Inventory Management System involves more acquiring assets, overseeing supplies, and delivering products and services to providers and patients.
To complete the procedures,
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Brief about Healthcare Supply Chain Management: In the healthcare inventory network begins at the medical item manufacturer where things are produced and sent to a distribution center. Contingent upon the kind of item, hospitals can either buy inventory specifically through the producer or wholesaler, or the transaction can be conducted through a group purchasing, which builds up a purchasing contract with the maker for the benefit of the hospital.
In Healthcare major parts are therapeutic items. They are sent to the hospitals, where the merchandise is stocked into inventory for providers and patients. The organization ensures that providers are not left without basic medical items and patients approach conceivably life-sparing devices.
In healthcare major departments “supply chain management involves the participation of regulatory agencies, such as the Federal Drug Administration, and healthcare payers, including Medicare and private health insurance companies”.
Regulatory agencies and payers are not left without basic therapeutic items and patients approach conceivably life-sparing devices.
Ongoing Supply Chain Management in
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In any case, some of these hospitals are not actualizing the proper supply chain management techniques, even as budgets get gobbled up and mergers and acquisitions increment.
Complexity in Healthcare Supply Chain Risk Management:
Supply Chain Risk Management is so unique because each stakeholder has their own advantages to secure. In each stage in the supply chain stream may be centered on their own goal. Providers may need to use a utilize an item since, they were prepared with it. Whereas hospital administrators aim to buy the most moderate quality things.
Supply chain goals are not always combined within the healthcare organization. The healthcare supply chain risk management process can be wasteful and divided. Healthcare organizations must consider various solicitations and perspectives to settle on item spending budgets.
In healthcare patient plays major role and have a voice in Supply Chain Management. Organizations may to regularly order the gloves etc. Providers may like a specific brand or type of medical product(item), it leads to cost concerns.
Healthcare leaders must improve strong sense of critical thinking in Risk
Because of the importance of risk management to the organization, senior management is committed to and supportive of the project to develop a new plan. This Plan can serve as a model to develop risk management program to meet the needs of HNI. Scope HNI’s Risk Management Program interfaces with many operational departments and services throughout the organization. Health Network has three main products: HNetExchange, HNetPay, and HNetConnect.
The medical supplies that is sourced by Kaiser Permanente headquarters is handled by an governmental agency DME (Durable Medical Equipment) department which handles equipment and supplies that are for repeated use and it may also provide crutches, oxygen equipment, wheelchairs or blood testing strips for diabetics. The rest of the supplies are handled locally by hospitals. Clinical engineering department is responsible for handling the medical supply inventory. They can distinguish which equipment needs to be included in the inventory after following guidelines of some government
It is imperative that Health Care Professionals learn to manage risk. There are many factors to think about including environment, assessment, identification and prioritising when managing risk. Being able to strategically implement preventative measures will help in managing risk. Risk management works hand in hand with all enablers set out by chapelhow.
Scott and Westbrook (1991) and New and Payne (1995) describe supply chain management as the chain linking each element of the manufacturing and supply process from raw materials through to the end user, encompassing several organizational boundaries.
Medical errors account for 98,000 deaths per year in the US. They increase disability, costs, and decrease confidence in the US health care system (Pham, Aswani, Rosen, Lee, Huddle, Weeks, & Pronovost, 2012). One of the main goals of quality and risk management is to minimize medical errors in order to improve the overall quality of medical care. In addition, healthcare organizations developed risk management programs in order to protect their financial assets from medical malpractice. Healthcare is a complex environment in which people suffer as a result of system failure.
It is no secret that risk is prevalent in the healthcare industry. Healthcare organizations carry a large amount of risk just in their daily operations. Healthcare organizations not only have to worry about risks to their patients, but their staff, financial stability, or even a natural disaster. A healthc organization must have a risk management department with trained and qualified individuals that know how to handle various issues within the organization. At Janssen, they have a lot of risk when it comes to their product. They have compliance laws that must be meticulously followed to prevent severe punishments such as multi-million dollar lawsuits or imprisonment from criminal convictions. They must promote their products lawfully and keep them regulated by the FDA and keep medical decision making free from improper industry influence. To go along side with risk management, quality management also plays a vital role within a healthcare organization. Quality management oversees the quality of the services the organization provides as well as the products it may sell. With pharmaceuticals, the quality must be consistent and how Janssen maintains this quality must be overseen. Quality control is an important factor for them. Controlling all of the various elements within their production and also the satisfaction of their consumers plays a vital role for continual success.
In the 1960s through the 1970s, companies realized strong engineering, design, and manufacturing functions were strong market strategy keys to create and capture customer loyalty. As the demand for new products rose in the 1980s, these market requirements were to increase their flexibility and responsiveness to adapt existing products and processes or to develop new ones in order to meet customer needs. As manufacturing improved in the 1990s, managers began noticing material and service inputs involving suppliers and their major impact on an organization’s ability to meet customer needs. As a result of these changes, organizations now find that it difficult to manage their own organizations. First, they must be involved in the management of their network of all upstream firms that provide directly or indirectly, as well as the network of downstream firms, which are responsible for delivery and market service of the product to the end customer. In order to succeed, managers have to realize that they cannot do it alone and they must work together on a daily basis with the whole organizations in their supply chains. Because supply chain management involves all functions within an organization, managers need to know what a supply chain is, why it is important, and the impact of supply chain management on the success and profitability of their organization. Today, Wal-Mart topped the list of the America’s biggest companies on the Fortune 500 list, “with sales of almost $345 billion — more than a quarter of a trillion dollars” (Forbs). Wal-Mart’s supply chain management is becoming recognized as a core competitive strategy.
According to Buchbinder, Shanks & Thompson (2010) the definition of is the process with technical and social activities and functions, occurring within organisations for the purpose of completing predetermined objectives through humans and other resources. More specifically, financial management is the subset of management that focuses on creating financial information that can be used to enhance decision making (Calabrese et al. 2013). With this definition, healthcare managers should be responsible to organisational tasks to maximize the best possible way to reach organisational goals and the proper resources with financial and human resources, considering the reason of organisation for existence in supporting the organisation through decision making processes (Buchbinder, Shanks & Thompson 2010; Daft & Marcic 2013). This essay, thus, the importance of proper understanding of management in achieving financial target will be discussed with the understanding of quality and safety concepts within healthcare organisations.
Risk management is the process of assessing potential dangers and taking a proactive approach to ensure patient safety at all costs (Sollecito and Johnson, 2013). The process involves detecting, reporting, analyzing and remedying situations that cause harm or distress to patients. All areas of a medical center or health care facility are included in the transformational process. Diagnosis, medical treatment and physical care of patients are among the most important areas that risk management addresses. Risk management perpetuates change in the overall quality of health care
It is right of a patient to be safe at health care organization. Patient comes to the hospital for the treatment not to get another disease. Patient safety is the most important issue for health care organizations. Patient safety events cost of thousands of deaths and millions of dollars an-nually. Even though the awareness of patient safety is spreading worldwide but still we have to accomplish many things to achieve safe environment for patients in the hospitals. Proper admin-istrative changes are required to keep health care organization safe. We need organizational changes, effective leadership, strong health care policies and effective health care laws to make patients safer.
Good leadership, fostering a culture of change and safety, team work are essential in implementing quality improvement and risk management in the organization. Leaders and the governing body must demonstrate commitment to the processes and define their expectations for all stakeholders. Leadership team should make sure that the team’s attention is focused on the core business of the organization, which is to provide care and treat patients in a safe and high quality clinical environment. There are different tools that can be used for quality improvement that also applies to analyzing risk issues. These are measurement of quality, benchmarking, RCA, FMECA, and so
Inventory management is a method through, which a business handles tangible resources and materials to ensure availability of resources for use. It is a collection of interdisciplinary processes including a full circle from the demand forecasting, supply chain management, inventory control and reverse logistics. Inventory management is the optimization of inventories of manufactured goods, work in progress, and raw materials. According to Doucette (2001) inventory management can be challenging at times; however, the need for effective inventory management is largely seeing more as a necessity than a mere trend when customer satisfaction and service have become a prime reason for a business to stand apart from its competition. For example, Wal-Mart’s inventory management is one of the biggest contributors to the success of the company;
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Problem Statement The capability of successful organizations to make the effective and efficient supply chain management a source of competitive advantage proposes that there may be valuable knowledge which can provide a point of benchmark for the progress of a related level of understanding of specific facets of healthcare delivery systems. The delivery system of healthcare is so complex and large that it has become almost impossible for any specific individual or any particular organization to understand complete details of its operations and activities. Similar to the industrial supply chain, healthcare supply chains also comprises of various independent agents like companies, insurance agents, doctors, hospitals and regulatory institutions whose economic structures and thereby objectives vary and