7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

1/19

Best and Next Practices in Healthcare

J .L Kellogg Distinguished Professor Emeritus ofAccounting and Information Management,

Northwestern University, U.S.A.

And

Founder & Dean,Great Lakes Institute of Management,

Chennai, INDIA

By:

Dr. Bala V. Balachandran

January 5, 2013

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

2/19

2013 Dr. Bala V Balachandran

Excellence Forever in Healthcare

Cost Crisis in Healthcare and Solution

Constructive Disruption in Healthcare

Effectiveness vs Efficiency Scale vs Scope

Availability, Accessibility, Affordability and Applicability

Innovation, Improvisation, Incentives and Integrity

Volume, Value, Velocity, Volatility, Voice of Customer

Stake Holders in the Industry

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

3/19

2013 Dr. Bala V Balachandran

Excellence Forever in Healthcare

HMO / PPO Established HR provides Physicians and Private Practitioners,

Patients & Customers, Pharmacists & Regulators Reimbursements

US models (Obama Care), UK and Canada Models

India Models & Health Care Tourism

Centers of Excellence in Healthcare One Stop vs Boutique & Strategic Alliance

Technological, Business Model & Providing Care Create, Communicate, Deliver

and Administer

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

4/19

2013 Dr. Bala V Balachandran

Value Based System for Healthcare

Achieving a Comprehensive Value based system

Rising costs, Ageing Population & New Medical Advances

Improving Outcomes with Efficient Care and Not Shifting costs or

Reducing Essential Services

Universal Insurance Coverage & Restructuring Delivery System

Incentives for Insurers, Care Providers & Patients On Value Based

NKF of Singapore

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

5/19

2013 Dr. Bala V Balachandran

Value Based System for Healthcare

Employers & Insurers Co-create Value

Reducing burden on New Employer by Tax Subsidy

A Reimbursement Aligning Improvement in Value

Effective & Efficient Utilization of Electronic Medical Records &

System Integration

Patients Responsibility & Accountability with Incentive

Health Dynamics, Medical Tourism, Strategic Alliances

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

6/19

Understanding CustomerProfitability To Create Value

Bala V. BalachandranJ.L. Kellogg Distinguished Professor ofAccounting and Information Systems

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

7/19 2013 Bala V. Balachandran

7

The Current Business Environment

New Products

Changing Workforce

New Competitors

Manufacturing / Service Excellence

Demanding Customers

Changing Technology

Global CompetitionDecreasing Margins

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

8/19 2013 Bala V. Balachandran

8

Levers to Maximize Profit

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

9/19 2013 Bala V. Balachandran

9

Levers to Maximize Profit

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

10/19

2013 Bala V. Balachandran10

Balas 4Ms

Measure Both Revenues & Costs Correctly (ABC)

Monitor Movement of Both Revenues & Costs To Apply 50% Rule For Benchmarking Rule-I and Cashew nut Rule-II

& continuous Improvement Manage For Action Plan

Yield Management / Revenue Management Thru-put Management Activity-Based Management Process Value Analysis So That We Can:

Maximize Profitability

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

11/19

2013 Bala V. Balachandran11

Strategic Process Management

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

12/19

2013 Bala V. Balachandran12

Strategic Process Management

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

13/19

2013 Bala V. Balachandran13

Strategic Profitability Management

Constancy of Purpose

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

14/19

2013 Bala V. Balachandran14

Value Chain Perspective of Business Functions

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

15/19

2013 Bala V. Balachandran15

Cost Management

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

16/19

2013 Bala V. Balachandran16

Value Chain Perspective

The End Buyer Pays for Margins Throughout the System

Supplier

Value Chain

Supplier

Channel

Value Chain

Firm

Value Chain

Buyer

Channel

Value Chain

Buyer

Value Chain

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

17/19

2013 Bala V. Balachandran17

Strategic Cost ManagementBalanced Scorecard

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

18/19

2013 Bala V. Balachandran18

Building Blocks of the e-Corporation

ERP Backbone

Supply Chain Management

Applications

Direct Material

Suppliers

Data Mining,

Knowledge

Mgmt. Apps.

Enterprise

Appl ications

Integration

Customers, Resellers

Customer Relationship Management

Applications

Intranet

Application

s

eProcurement

Application

s

7/29/2019 Best Practices, Next Practices and Excellence for Ever in Health Care - Prof Bala

19/19

Thank YouQuestions?

August 3, 2012