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Financial Optimisation in Healthcare Organisations

  Apr 27, 2012

Africa is potentially becoming a hub of many development ideas, a good sign for the economic stability of the continent. One of the key areas that is gaining momentum is the healthcare sector, specifically in research, healthcare technologies and pharmaceutical companies which are positioning themselves in Africa. Thus, healthcare leaders in the region have a responsibility to shape healthcare provision, implement innovation in order to achieve organisational excellence, improve financial outcomes, and above all apply best practices in management and healthcare delivery to help sustain competitive advantage to healthcare practices.

Many countries all over the world are struggling with the rise of healthcare costs. Cost constraint is a common subject that resonates throughout the healthcare field today and receives increasing attention of policy makers, academia and industries. The healthcare sector all over the world is straining with pressure to not only control the escalating costs but also improve the quality of care it provides to its consumers. Thus, optimizing operational processes in healthcare organisations is fundamental to delivering topmost quality care and achieving financial sustainability.

Operational process is concerned with the design, management and improvement of the systems that create the organisation’s goods and services. For the case of healthcare systems the medical services offered to patients and the effectiveness of the whole process of delivering the services to the client is channeled and managed for the purposes of achieving excellent results. The four major areas that help achieve excellent results in the operational process are facility design and layout, cost analysis, process analysis and information systems development and implementation.

In the healthcare organisation setup, it is a big challenge to analyse and present real-time performance on financial processes especially if proper mechanisms are not set up to do so. Besides, for purposes of gaining more balance especially in finances, operational management is necessary for the achievement of excellent results. In summary, vital objectives need to be set up to drive operational performance in healthcare organisations. These objectives resonate around quality and cost; that is ability to provide excellent quality and at the same time maintain a reasonable cost that is affordable to the customer and sustainable to the organisation. Further, cost optimization is related to other factors such as dependability, flexibility and delivery of services which will eventually increase confidence to the stakeholders and the clients.

About LeHHO

Held in conjunction with Management Sciences for Health (MSH) and through funding from USAID, LeHHO is designed for the healthcare leaders of our region and is geared towards improving healthcare delivery – a key criterion of economic development.

The face of healthcare is dynamic and more complex than ever, with technological innovations, new treatments, new laws & regulations, and new types of healthcare service delivery models.In addition to negotiating the day-to-day demands of a busy and complex organisation, healthcare delivery leaders must also be able to evaluate and understand the impact of different healthcare delivery models and major service delivery programs in specific disease areas.

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