The impact of professional management in healthcare

Management is key to company performance

20 years ago Charan and Colvin identified poor strategy execution as the primary cause for 70% of the fortune 500 companies` failures. In 2003 Joyce, Nohria, and Roberson investigated why some companies performed better and looked for management tools that would warrant this success. They did not identify the one magical management instrument but found that a disciplined application of management basics is the key to outstanding company performance. This result is in line with ex-Stanford professor James C. Collins` findings on successful leadership and management, precipitated in his 2003 management bestseller “Built to last.”

The effect of management in healthcare?

Is the correlation between management quality and company success transferrable into the health care sector? Will professional management lead to better outcomes of hospitals?

To answer this question McKinsey and the London School of Economics and Political Science carried out an international study to assess the correlation between hospitals` management and their economic and medical results in 2010. The authors developed a management score and measured parameters like return on investment, patient satisfaction, EBITDA, income per bed and the like. The study revealed that hospitals with a superior management score excelled in all categories. There was even a significant 6% advantage in the mortality rate of patients after a heart attack in hospitals with better management.

Our insights: Mangement and performance in hospitals

We could find similar results in change programs in hospitals in Germany and India over the last 15 years. We saw an increase in the revenue, reduction of some complication rates following cardiac surgery, an increase in the number of applications of physicians, and more stable relationships to external partners after implementing basic management principles into the clinical routine in German hospitals.

Sustainability of hospitals

Moreover, we supported some of the top private and public hospital networks in India in designing cost efficient programs. From these projects we deduced useful tips and indicators to hospital leaders and clinicians.

Our recommendation: Professional hospital management

We, therefore, strongly recommend to set up a lean and effective medical management system in hospitals utilizing simple management instruments. Our management courses, thus, exclusively address healthcare professionals by focusing on immediately applicable tools because we know the time constraints in the daily clinical routine.

Management is not taught in medicine studies or nursery education

From our experience, basic management skills are beneficial to healthcare professionals from student-level to senior super-specialist-level. It is essential to well organize the clinical processes on the ward, even as a young resident or a first-year nurse. Unfortunately, teaching the fundamental principles of healthcare management and organization is not part of any known curriculum for the education of neither nurses nor physicians.

Cutting short economic studies with relevant management courses

Hannover-Medical.Management supports you in setting up your individual medical management system that fits your personal management- and leadership style. A disciplined and systematic management approach will not only boost your professional career but also improve your private life significantly.