The enactment of the Affordable Care Act of 2010 (ACA) was seen as a major milestone in health care as it sought to ensure that the quality of care is improved while ensuring that the costs remain low. Cimasi (2016) takes note of the fact that the improvement in the quality of health care service delivery is directly proportional to the health care costs, which can be viewed from the perspective of the rising costs of other products and services. The main issue of focus when evaluating impact that the economy is having on health care revolves around the issue of inflation. The ‘inflation gap’ creates a situation where it becomes much more challenging for an actual control of the rising costs of health care services while ensuring that this would translate to the quality of services offered (Kim, Spahlinger, Kin, & Billi, 2006).
Position on the Argument
The adoption of the same principles seeking to improve the manufacturing industry ought to be considered based on the set out shifts in standards that would be expected within the health care industry. An example of a principle, in the manufacturing industry, that may be apply in health care service delivery is the Lean technique. The Lean technique involves comprehensive evaluation of all key processes involved in a given approach to service delivery with the aim of reducing possibilities of wastage (Kaissi, 2012). The adoption of this technique in health care may not have the expected levels of outcomes considering that this would seek to change the way approaches to care while failing to take into account the lives of the patients involved.
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In this paper, the argument is that improvements occurring within the manufacturing industry cannot be duplicated within the health care industry. In that case, the position of the papers maintains that the principles applied within the manufacturing industry cannot be applicable within the healthcare industry. The manufacturing and the healthcare industries have distinct features that require the implementation of different improvement techniques. The improvement techniques applied within the health care industry cannot be transferred to the manufacturing industry considering that the nature of operations differs.
Justification of the Position
Smith (2007) takes note of the fact health care and the economy cannot be separated considering that any changes to the economy are likely to have severe impacts on health care service delivery and vice versa. An example of an economic factor that is likely to impact health care is the GDP whereby an increase in the GDP would mean that health care expenditure would be expected to go up. In that same perspective, it is important to engage in an in-depth evaluation of the rising costs of health care from the perspective of the economy. That means that health care costs may be viewed based on the overall structure of insurance, both private and public, which has been noted as one of the key factors contributing to the high costs noted.
In an article on the link between health care and the economy, Marcinko & Hetico (2012) indicate that, “the average growth in healthcare expenditure relative to the economy at large is inevitable and an ineradicable part of the developed economy. Consequently, an attempt to [control average costs] may be as foolhardy as it is impossible” (p.22). From that perspective, it is important to consider the overall impacts that economic productivity is likely to have on health care service delivery. That serves as one of the key factors that supports the position that indeed health care has a direct connection to the economic condition or structure in given countries. The ultimate expectation is that the economy would be expected to serve as one of the key determinants of whether indeed health care service delivery would improve.
Productivity Growth
In comparison of productivity growth between the manufacturing industry and health care, it can be argued that indeed health care tends to have a lower productivity attributed to several key factors (Hillestad, Bigelow, Bower, Girosi, Meili, Scoville, & Taylor, 2005). The following are some of the key factors that tend to reduce productivity levels in health care:
Healthcare is Naturally Impervious Compared to Automation
Nat Natarajan (2006) reflects on health care as an industry that is naturally impervious attributed to overall expectations with regard to quality of care for patients. That is not the case within the manufacturing industry, as it focuses more on an automation process, which can be guaranteed through advancements in technology. The ultimate outcome of this is that it creates a situation where it becomes hard to adopt the same principles that would apply in the manufacturing industry to health care. Health care is an industry that cannot afford or rectify mistakes in comparison to the manufacturing industry (Thompson, Wolf, & Spear, 2003).
Localized Healthcare
Companies operating within the manufacturing industry tend to focus more on outsourcing some of their manufacturing processes arguing that this would allow them to minimize on overall costs of production (Lee, Weiner, Harrison, & Belden, 2013). However, the health care industry reflects more on ensuring that patients are able to access the best quality of care at all times within the localized level. That means that application of quality improvement from the manufacturing industry is much more likely to impact on the quality of services that health care institutions offer to their patients. That serves as a clear indication of the need for having to ensure that health care facilities actually come up with their unique structures of performance to allow them improve on the services offered.
Expended Amount of Labor
The adoption of technology as part of the manufacturing industry has allowed companies to cut down on mass recruitment with the view that the manufacturing processes would be automated to improve on quality outcomes (Needham, 2012). However, this is not the same in health care, as health care is an industry that is more labor intensive considering that it requires a wide array of persons in a bid to ensuring that the quality of services would improve. Health care does not offer possible opportunities for automation, as it is an industry that requires patients to have a close connection with health care professionals in health settings. The fact that this creates a difference between these two industries serves as one of the key expectations touching on the need for having to create unique principles that would relate to this industry. The principles from the manufacturing industry may apply in industries that are expected to make use of automation and technology.
Conclusion
On the question of whether quality improvement principles applied in manufacturing can be applied in health care, it becomes clear that the application of these principles is not possible considering that these two industries do not relate in terms of their service delivery expectations. Health care is an industry that require more of a hands-on approach towards improving the general quality of services offered. However, the manufacturing industry has adopted more of technology; thus, meaning that focuses more on automation of most of its services while ensuring the quality is improved. On the other hand, it is evident that health care is a labor-intensive industry, which is not the case for the manufacturing industry; thus, meaning that the principles for quality improvement within the two industry cannot relate.
References
Cimasi, R. J. (2016). Accountable Care Organizations: Value Metrics and Capital Formation . Productivity Press.
Hillestad, R., Bigelow, J., Bower, A., Girosi, F., Meili, R., Scoville, R., & Taylor, R. (2005). Can electronic medical record systems transform health care? Potential health benefits, savings, and costs. Health affairs , 24 (5), 1103-1117.
Kaissi, A. (2012). “Learning” from other industries: lessons and challenges for health care organizations. The health care manager , 31 (1), 65-74.
Kim, C. S., Spahlinger, D. A., Kin, J. M., & Billi, J. E. (2006). Lean health care: what can hospitals learn from a world‐class automaker?. Journal of Hospital Medicine: an official publication of the Society of Hospital Medicine , 1 (3), 191-199.
Lee, S. Y. D., Weiner, B. J., Harrison, M. I., & Belden, C. M. (2013). Organizational transformation: A systematic review of empirical research in health care and other industries. Medical Care Research and Review , 70 (2), 115-142.
Marcinko, D. E., & Hetico, H. R. (2012). Hospitals & health care organizations: management strategies, operational techniques, tools, templates, and case studies . Productivity Press.
Nat Natarajan, R. (2006). Transferring best practices to healthcare: opportunities and challenges. The TQM Magazine , 18 (6), 572-582.
Needham, B. R. (2012). The truth about patient experience: What we can learn from other industries, and how three Ps can improve health outcomes, strengthen brands, and delight customers. Journal of Healthcare Management , 57 (4), 255-263.
Smith, M. D. (2007). Disruptive innovation: Can health care learn from other industries? A conversation with Clayton M. Christensen. Health Affairs , 26 (3), w288-w295.
Thompson, D. N., Wolf, G. A., & Spear, S. J. (2003). Driving improvement in patient care: lessons from Toyota. Journal of Nursing administration , 33 (11), 585-595.
