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Organizational Structure and Design in Health and Medicine
Abstract
The organizational structure of an establishment refers to an institution’s hierarchy, depicting its chain of command, arrangement of departments, and associated reporting relationships within the organization. Organizational structure activities, including organizational chart assembly, represent the most notable pursuits of organization design, a component of organizational behavior and management which focuses on the process of formulating, implementing, and evaluating institutional structures, activities, and operations in a manner which facilitates the fulfillment of an organization’s mission. When healthcare organizations are established, a full range of decisions and actions concerning institutional structures and work processes are required. As they mature, these operational facets must evolve to accommodate any changes encountered. While options abound for structuring and designing organizations in manners desired, as with anything, prudent decisions must be made in order to realize success. The better designed a healthcare establishment, the better able it will be to perform. By deploying the knowledge and skills conveyed in this chapter, healthcare providers will be able to aid their given institutions in harnessing the power of organizational structure and design, affording opportunities to execute operations successfully, ultimately leading to mission fulfillment.
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Background:
Characterized by declining populations, high poverty, reduced employment opportunities, and high numbers of uninsured residents, rural communities pose significant challenges for healthcare providers desirous of addressing these medically underserved areas. Such difficult environments, in fact, have forced the closure of many rural hospitals across America, with scores facing the same threat, compelling intensive efforts to identify pathways which will yield an improved future.
Discussion:
Collaborations with stronger urban or suburban healthcare institutions offer a prudent avenue for rural hospitals to continue serving their patients. Such relationships can be structured in many different ways, but Willis-Knighton Health System found that its use of the hub-and-spoke organization design set the stage for the institution to cast a vital lifeline to neighboring rural hospitals, affording the relatively seamless integration and assimilation of partner facilities into its network, ensuring continuity of services in remote regions. This article supplies an overview of the hub-and-spoke network and discusses Willis-Knighton Health System's use of it to facilitate the establishment of productive partnerships with rural hospitals.
Conclusions:
The delivery of healthcare services in rural environments is essential, but with small community hospitals increasingly being under threat, the outlook is not particularly attractive. Partnerships with better positioned healthcare entities offer significant hope, but care must be taken to structure these arrangements optimally. Willis-Knighton Health System found utility and value in its hub-and-spoke organization design, with the insights presented in this account potentially offering a pathway for others to follow as they go about addressing the healthcare needs of rural populations.
Background
The healthcare industry is characterized by intensive, never-ending change occurring on a multitude of fronts. Success in such tumultuous environments requires healthcare providers to be proficient in myriad areas, including the manner in which they organize and deliver services. Less efficient designs drain precious resources and hamper efforts to deliver the best care possible to patients, making it imperative that optimal pathways are identified and pursued. One particular avenue that offers great potential for serving patients efficiently and effectively is known as the hub-and-spoke organization design.
Discussion
The hub-and-spoke organization design is a model which arranges service delivery assets into a network consisting of an anchor establishment (hub) which offers a full array of services, complemented by secondary establishments (spokes) which offer more limited service arrays, routing patients needing more intensive services to the hub for treatment. Hub-and-spoke networks afford many benefits for healthcare providers, but in order to capitalize fully, proper assembly is required. To advance awareness, knowledge, and use of the hub-and-spoke organization design, this article profiles Willis-Knighton Health System’s service delivery network which has utilized the model for over three decades. Among other things, the hub-and-spoke organization design is defined, benefits are stipulated, and applications are discussed, permitting healthcare providers essential insights for the establishment and operation of these networks.
Conclusions
The change-rich nature of the healthcare industry places a premium on incorporating advancements that permit health and medical providers to operate as optimally as possible. The hub-and-spoke organization design represents an option that, when deployed correctly, can greatly assist healthcare establishments in their quests to serve patients well.
Background
Centers of excellence—specialized programs within healthcare institutions which supply exceptionally high concentrations of expertise and related resources centered on particular medical areas and delivered in a comprehensive, interdisciplinary fashion—afford many advantages for healthcare providers and the populations they serve. To achieve full value from centers of excellence, proper assembly is an absolute necessity, but guidance is somewhat limited. This effectively forces healthcare providers to pursue establishment largely via trial-and-error, diminishing opportunities for success.
Discussion
Successful development of a center of excellence first requires the acquisition of a detailed understanding of the delivery model and its benefits. Then, concerted actions must be taken on a particular series of administrative and clinical fronts, treating them in prescribed manners to afford synergies which yield an exceptionally high level of care. To reduce hardships associated with acquiring this rather elusive knowledge, remedy shortcomings in the literature, and potentially bolster community health broadly, this article presents information and insights gleaned from Willis-Knighton Health System’s extensive experience assembling and operating centers of excellence. This work is intended to educate and enlighten, but most importantly, supply guidance which will permit healthcare establishments to replicate noted processes to realize their own centers of excellence.
Conclusions
Centers of excellence have the ability to dramatically enhance the depth and breadth of healthcare services available in communities. Given the numerous mutual benefits afforded by this delivery model, it is hoped that the light shed by this article will help healthcare providers better understand centers of excellence and be more capable and confident in associated development initiatives, affording greater opportunities for themselves and their patient populations.
Context: Quality health care should be within everyone’s reach, especially in a developing country. While India has the largest private health sector in the world, only one-fifth of healthcare expenditure is publically financed; it is mostly an out-of-pocket expense. About 70% of Indians live in rural areas making about $3 per day, and a major portion of that goes towards food and shelter and, thus, not towards health care. Transportation facilities in rural India are poor, making access to medical facilities difficult, and infrastructure facilities are minimal, making the available medical care insufficient. The challenge presented to India was to provide health care that was accessible, available and affordable to people in rural areas and the low-income bracket.
Issues: The intent of this article is to determine whether the hub and spoke model (HSM), when implemented in the healthcare industry, can expand the market reach and increase profits while reducing costs of operations for organizations and, thereby, cost to customers. This article also discusses the importance of information and communications technologies (ICT) in the HSM approach, which the handful of published articles in this topic have failed to discuss. This article opts for an exploratory study, including review of published literature, web articles, viewpoints of industry experts, published journals, and in-depth interviews. This article will discuss how and why the HSM works in India’s healthcare industry while isolating its strengths and weaknesses, and analyzing the impact of India’s success. India’s HSM implementation has become a paramount example of an acceptable model that, while exceeding the needs and expectations of its patients, is cost-effective and has obtained operational and health-driven results. Despite being an emerging nation, India takes the top spot in terms of affordability of ICT as well as for having the highest number of computer-literate graduates and healthcare workers in the world. These factors further aid the implementation of HSM in India, thereby proving the model as a stable operational environment that is saving costs in a financially challenged nation.
Lessons learned: HSM has an innovative architecture that emphasizes optimal utilization of scarce healthcare resources in rural areas. HSM demonstrates that medical care can be provided to even the most rural areas while still utilizing modern procedures and equipment at a much more nominal cost to the end user. It also eliminates the need for unnecessary travel, and keeps costs low to medical facilities and patients alike. The model has the potential to create and sustain thousands of local jobs, both direct and indirect. The hope is that the review of the impact of the HSM in Indian health care will result in inquiries of a similar nature in the future.
Key words: cloud computing, healthcare delivery model, hub and spoke model, India, information and communication technology, low cost, rural clinics, urban hospitals.
Chronic wounds cause morbidity due to local infections, sepsis, osteomyelitis, but also increase mortality in the most severe cases and in patients with multiple comorbidities. Their increasing prevalence, associated disabilities and relevant health costs make chronic wounds a real social disease. At a time in which we hear more and more about spending reviews and reduction of health care costs, the natural evolution of Medicine and Health Care is increasingly directed towards the achievement of high quality standards while at the same time, reducing costs. It is in this framework that a hub and spoke model was used for organizing Plastic Surgery services in Ancona (Italy). In order to ensure appropriate clinical and organizational management of services, the activities of reference centres need to be widely integrated, by functional interconnections with activities of peripheral hospitals and local centres. Through a careful analysis of the Regional Reference Center for non - healing wounds in Ancona, the authors make some considerations regarding appropriate diagnostic-therapeutic-healthcare pathways and the correct use of human, material and technological resources in the area of wound healing.
In a hub-spoke airline network, the spoke market is generally larger than the rim
market. In the rim market, the potential scales of demand for the connecting and direct flights
are different. Passengers differentiate among the flights of carriers. This study demonstrates that
for new entrants, entering the rim market with direct flights could be preferable, if the degree of
product differentiation is sufficiently small, or the scale of direct flights demand is large. This
may explain the phenomenon that entrants usually enter the market with rim routes. Welfare
analysis suggests the necessity for a transport policy to guide potential entrants to enter the
socially preferable route.
First published in 1961, this book is a very influential book on organization theory and industrial sociology. The central theme of the book is the relationship between an organization and its environment — particularly technological and market innovations. Based on first-class scholarship, the book presents the now famous and ubiquitous classifications of ‘mechanistic’ and ‘organic’ systems. For this it has become justly famous, but the book is also a penetrating study of social systems within organizations and organizational dynamics.
Background:
In 2006, the Centers for Medicare and Medicaid Services restricted coverage for bariatric procedures to designated high-volume Centers of Excellence. The effect of centralization of elective surgical procedures on the ability of patients to access surgery has not been studied previously.
Study design:
Inpatient claims data from 2008 to 2011 from 2 high-volume surgical states were used. All patients older than 18 years undergoing a bariatric surgical procedure were included. The number of bariatric procedures and characteristics of patients undergoing bariatric surgery were examined in each year. Nonparametric tests for trend were performed to analyze time trends. Difference-in-difference analyses were performed to assess the rate of bariatric surgery in underserved Medicare patients compared with underserved patients with other payers.
Results:
The percentage of procedures performed at Centers of Excellence increased from 60.5% in 2008 to 73.1% in 2011 (p < 0.01). The proportion of Medicare patients receiving surgery at a Center of Excellence increased from 77.7% in 2008 to 88.1% in 2011 (p < 0.01). The proportion of bariatric surgery patients from underserved groups increased over time except among those residing in rural areas, for whom there was no change. Among patients from underserved populations, only black Medicare patients experienced an increase in bariatric surgery use when compared with non-Medicare patients. The travel distance for Medicare patients consistently exceeded travel distance for non-Medicare patients. However, travel distance for Medicare patients decreased slightly during the study period.
Conclusions:
Despite the longer travel distance required for Medicare patients, centralization of bariatric surgery to Centers of Excellence did not result in impaired access to care. In fact, in this study, an improvement in access to bariatric surgery was seen and persisted among some underserved populations.
Various forms of the Hub and Spoke model have been in existence in nursing programmes, providing nurses with the opportunity to observe a client or patient journey or to gain an overview of services available in the local area. This article reports on the implementation of a Hub and Spoke model of practice learning at Edinburgh Napier University for nursing and midwifery students. The article concentrates on the practical development of the infrastructure to support the model and some field-specific examples of implementation.
Because of its ability to create real incremental value for patients and providers, physician-hospital integration will continue to play a major role in transforming the way healthcare is delivered. Integration is more than a transaction, and without developing the right culture, new integrated organizations will struggle to transform their current model of care. Confronted with regulatory and specialty-specific environmental forces, cardiovascular physicians have integrated with health systems at a higher rate than other specialties have. In 2007, Piedmont Healthcare launched Piedmont Heart as the first integrated cardiovascular care delivery program affiliated with a community healthcare system in greater Atlanta. Piedmont Healthcare had successfully brought together hospitals and cardiovascular physicians in an organizational structure that allowed for the right culture, resulting in true integration and patient-centered care. Today, Piedmont Heart is one of the largest physician groups in the United States focused on delivering high-quality outcomes, aligning multidisciplinary cardiovascular initiatives, and allowing for smart, strategic growth. It has taken Piedmont Heart nearly five years to create new, incremental value from its center-of-excellence organizational structure, clinical pathways development, and Patient First program. Piedmont Heart had the advantage of starting earlier than many other physician-hospital integrated structures. As US healthcare moves from an industry driven by volume to one focused on value, it is organizations like Piedmont Heart that continue to drive smart integration forward and focus on innovation, despite potential disruption, that will be successful.
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