Why Do Some Hospitals Tolerate Poor Performance?

hospital problemsBy Cary Gutbezahl, MD, President, Compass Clinical Consulting:

When we are asked to help a hospital that has major financial or quality problems, we almost always find that these problems didn’t begin overnight. In fact, there was evidence of problems for many years. In retrospect, it is easy to point fingers at those individuals and boards that “missed the problem.” The more important issue is whether the problem should have been recognized at an earlier time, when the problem could have been corrected without significant damage to the organization.

Our experience says that while hospitals sometimes overlook indications of problems, more often, CEOs and boards tolerate a series of ineffective attempts at fixing the problem.

Why would that be?

One reason we have found is that there exists a limited understanding of the real nature of the problem. Many organizations don’t think through what is driving poor performance issues. The best way to gain an understand of the problem is to mix knowledge with novelty. We recommend bringing knowledgeable insiders together with “uncontaminated,” but capable participants. The insiders provide factual information about what is going on, while people who are uninvolved can ask questions to surface issues that might be overlooked by people involved in the issue every day.

Another cause of poor performance is an unwillingness or inability to figure out how to deal with the drivers creating the problem. For example, sometimes people are afraid of asking the medical staff to change. In reality, this should not be difficult if hospital leaders develop a good solution that meets everyone’s needs.
Again, this is a situation in which unbiased participants can spur innovative solutions. Non-participants can ask questions or challenge assumptions that prevent creative solutions. As an interim CMO, I have often approached problem physicians and achieved positive outcomes. I don’t think this was because we were both physicians since other physician leaders had made failed prior attempts. The source of my success was that as a newbie, I wasn’t afraid of approaching the physician, I showed respect and that I brought a fair and unbiased perspective.

Often, failed problem-solving begins when the wrong people are invited to solve the problem. Many hospital managers when faced with a problem of poor performance have a tendency to “round up the usual suspects” (apologies to the movie, Casablanca). Frequently, this means the very people who have been unable to solve the issue before are still asked to come up with a new answer. The people who are involved in long-standing or slowly simmering problems had plenty of time to fix the issue but have been unable to arrive at a durable solution. This is a case of what you don’t know can hurt you – and it calls for a new set of eyes to bring about sustainable improvement in performance.

To create solutions to persistent problems, leaders and managers need to think differently. That usually requires gathering new perspectives from people who haven’t been part of the problem.

Read more about how hospital leaders can impact hospital performance.

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About the Author

Cary understands what it takes to make, “Better American Hospitals.” In addition to being a seasoned consultant, Cary has worked as interim hospital CMO in three different organizations, as well as served as medical director for two multi-specialty medical groups and several HMOs. Cary has a solid history of leading medical staff through improvements in utilization management, changes in peer review practices, and corrective action procedures. As President and Chief Operating Officer, Cary is armed with a diverse background in hospital, medical group, and managed care settings, and has immersed himself in developing the strong knowledge base and extraordinary skill set needed to successfully improve today’s hospitals. While serving as a member of the American College of Physician Executives, Cary has used his deep knowledge of the complex structures of the healthcare field and applied it toward implementing quality improvement initiatives and developing governance structures, strong compensation plans, productivity reporting models, and effective physician management training programs. Prior to joining Compass Group, Cary provided a number of successful consultant services resulting in projects that included the effective merging of medical staff of two hospitals, reducing the length of stay at hospitals, decreasing inpatient utilization for managed care organizations in several markets, the successful turnaround of the financial performance of a Medicare PHO with full capitation, mentoring Chief Medical Officers, evaluating medical group capability for managing capitation, and improving operating room utilization. Cary continues to use his compelling interpersonal skills to maintain a strong focus on improving clinical operations, developing medical staff leadership, and strengthening physician relationships. While Cary served on active duty in the U.S. Navy, he was Head of the Quality Assurance Department of the Navy Medical Command, National Capital Region, in Bethesda, Maryland. Cary is board certified and completed a laboratory medicine residency and an immunohematology fellowship at Washington University in St. Louis. In addition to his numerous national speaking engagements, he has authored a number of publications including, Hospital Service Recovery, Journal of Hospital Marketing and Public Relations.

Comments (1)

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  1. MedicalQuack says:

    This is a very good article and you get right down to the point. I have had CEOs run for the hills when you start talking technology based solutions, as they don’t participate enough to comprehend. A few years ago I encountered a CIO who was promoted up through the ranks that didn’t even know how to give remote support to users and at the same hospital found installations of LimeWire and other items on workers computers.

    The IT manager had no clue and added users to the active directory but didn’t include workstations under group policy so employees had a free run at all of this.

    Again, you made a very good point at the lack of understanding at the highest levels of companies, and again as I attribute a lot of this it is heavily due to lack of participation and a bit of tech denial mixed in there too.

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