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Healthcare planning and its potential role increasing operational efficiency in the health
sector: A viewpoint
Anthony Virtue Thierry Chaussalet John Kelly
Article information:
To cite this document:
Anthony Virtue Thierry Chaussalet John Kelly, (2013),"Healthcare planning and its potential role increasing
operational efficiency in the health sector", Journal of Enterprise Information Management, Vol. 26 Iss 1/2
pp. 8 - 20
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http://dx.doi.org/10.1108/17410391311289523
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JEIM VIEWPOINT
26,1/2
Healthcare planning and
its potential role increasing
8 operational efficiency in the
health sector
A viewpoint
Anthony Virtue
EC Harris LLP, London, UK
Downloaded by Carleton University At 12:12 31 January 2016 (PT)
Thierry Chaussalet
Department of Business Information Systems,
University of Westminster, London, UK, and
John Kelly
HealthCare Partnering Ltd, London, UK
Abstract
Purpose – The purpose of this paper is to consider a number of issues around the poor adoption
of healthcare simulation models and reflect whether there has been a broad failure of academic
healthcare simulation modellers to build models that reflect real healthcare problems as acknowledged
by healthcare stakeholders. This paper will also review the role of healthcare planners within the
health sector and propose that they are well suited to act as change agents to improve the adoption
of simulation within the sector.
Design/methodology/approach – This paper reviewed academic evidence around poor adoption of
simulation modelling in healthcare, including differences to other sectors, its size and complexity,
stakeholder issues and current and future challenges to improve operational efficiency. This paper also
reviewed the role of healthcare planning and its valuable links with health stakeholders, suggesting
that these links could be exploited to increase simulation modelling within the healthcare sector to
improve operational efficiency.
Findings – This paper highlights the strong links between healthcare planning and the healthcare
stakeholders and proposes that healthcare planning can play a key role in adoption of healthcare
simulation modelling to achieve operational efficiency improvements.
Originality/value – This paper illustrates the potential link between healthcare planning and
healthcare stakeholders to achieve operational improvements within the health sector.
Keywords Simulation, Modelling, Health care, Healthcare planning
Paper type Viewpoint
1. Introduction
A number of industries have benefited from application of simulation modelling
including healthcare. Despite the documented benefits, a number of academic papers
Journal of Enterprise Information have suggested that within healthcare, the application of simulation to real problems is
Management not as wide as in other industries. This paper will consider a number of issues around
Vol. 26 No. 1/2, 2013
pp. 8-20 the poor adoption of healthcare simulation models and reflect whether there has been a
r Emerald Group Publishing Limited
1741-0398
broad failure of academic healthcare simulation modellers to build models that reflect
DOI 10.1108/17410391311289523 real healthcare problems as acknowledged by healthcare stakeholders. This paper will
also compare the adoption of simulation modelling in healthcare to other industries, Healthcare
including a dialogue as to whether healthcare is fundamentally different to other planning
industries resulting in problems of adoption. Issues related to the size and complexity
of the health sector as well as the range of health stakeholders and their requirements
will also be discussed in context of the adoption of simulation modelling.
In the UK, as demand for health and associated health cost increase against a
backdrop of public spending cuts, there is a huge opportunity for simulation modelling 9
to help achieve productivity (financial) savings. It could well be the case that simulation
modelling occurs more often in the health sector than suggested by academic papers. For
example, in the UK beds and/or patient activity modelled for hospitals constructed under
private finance initiative (PFI) schemes are essentially private commercial agreements
and as such, generally hidden from public view. In this paper, phrases or terms
describing modelled beds or modelled patient activity, will refer to actual modelled beds
or non-bedded patient activity (e.g. outpatients or imaging) at a hospital level. This paper
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will review the impact of PFI and the healthcare planning role within it.
This paper will also review the wider role of healthcare planners, who have
historically modelled beds and activity, whilst developing their skills and relationships
with health stakeholders and designers developing facilities and services in health.
Building on their established relationships with healthcare stakeholders, this paper
will propose that the role of healthcare planners can be an ideal actor to help further
increase the adoption of simulation modelling in the health sector. The healthcare
planners’ relationships could also be used to foster other initiatives within health such
as Lean methodologies. As a practicing healthcare planner in the UK, modelling NHS
hospital activity is the primary focus of this paper; although it is likely that ideas
discussed in this paper can be transferred to many other areas in and around health,
both at home and overseas.
100
8.1
90
80 43.0
48.9 44.2
70
60
50
%
19.2
40
30 36.5
52.9
20 39.1
10
8.0
0
Figure 1. Class A Class B Class C
Distribution of levels of Healthcare Defence/aerospace Industry/business
stakeholders by domain
Source: Adapted from Eldabi (2009)
healthcare was empirically different to other industries also suggested that health was Healthcare
different. The study suggested a range of factors which differentiated health from other planning
industries. The differentiating factors were described as:
. the problems perspective: structure of problems, complexity and rate at which
problems change;
. the cost and data perspective: effort and difficulty associated with collecting data 11
and ease of results interpretation; and
. external factor perspective: influence of political events, rate of change and the
appropriateness of simulation software.
Eldabi’s findings also appeared to support the observations by Proudlove et al. (2007)
who suggested that rather than focusing on the environment and needs of health sector
stakeholders, academics publishing work were often rewarded for developing large
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complicated models with detailed analysis. Taylor et al. (2009) similarly noted that
academics and researchers, rewarded for publishing in high-quality journals, could
potentially be disengaged from real-world issues.
(2004), Young et al. (2009), Proudlove et al. (2007) and Chick (2006) to name but a few.
Likewise, developing models to address real business needs were issues highlighted by
Sanchez et al. (2004) and Proudlove et al. (2007).
Another issue related to model complexity was the time taken to develop models.
Model development needs to be on the stakeholders’ timelines. As suggested by
Eldabi, in a fast-moving (wicked) world, healthcare projects rarely have the time
(nor funds) to model to a complete resolution; instead projects need to be resolved
within a specified time and budget. The timeliness of the model was issues highlighted
by Bowers et al.’s (2009) study of an emergency department. Whilst the model
provided a major contribution to the understanding of the process, the model was
delivered after the system had been thoroughly investigated and changes
implemented. Young et al. (2009) suggested the possibility of developing generic
models and working with practitioners developing rules of thumb to provide ready
guides to practice. These suggestions may show potential moving forward. They
may offer pragmatic solutions to wicked problems as described above which
simplify and thus speed up the modelling process, better suiting stakeholders’ needs
and requirements. Sometimes within health, determining relevant stakeholders can be
problematic in itself, as noted by Brailsford et al. (2009) who counted 28 stakeholders
ranging from the public to Parliament.
The evidence provided by the papers above suggests that although healthcare is
perhaps different to other industries, they also implied that often academic researchers
failed to respond to the challenges of health service stakeholders to fix real problems.
Moreover, the papers above alluded that academic-based healthcare simulation models
did not do enough to capture the attention of healthcare stakeholders. Another possible
reason to explain the poor adoption of academic style simulation and adoption could
be related to the issue that the healthcare community currently has a level of bed
and activity modelling capability and health stakeholders might not see a need for
additional modelling or simulation capability. The current bed and activity modelling
capability is discussed below.
Healthcare planning
Horizons Decision levels function examples
owned and managed the physical structure that delivered healthcare. Under PFI, a
hospital Trust would enter into a contractual agreement with a private sector
consortium that would build and then provide a fully serviced building over an agreed
period. During the agreed period, typically 25-30 years, the trust would pay the PFI
consortium annual service charges. The PFI process had a number of formulised steps
including development of a number of business cases as shown in Table II.
Therefore, as illustrated in Table II, business case development (the strategic outline
case (SOC), outline business case (OBC) and full business case (FBC)) was a key step in
the PFI process. A number of PFI schemes started up in a relatively short period of
time creating PFI (and related business cases) skills and knowledge gaps in the health
sector. Healthcare planners were often used to help fill the skills gap to develop PFI
SOCs, OBCs and FBCs (Department of Health, 2007). Healthcare planners, employing
skills such as estate strategy development, demand and capacity planning (with its
associated bed and activity modelling) and business case development often played a
key role in the PFI approval process. With their knowledge of the PFI process,
frequently healthcare planning teams separately represented both the consortium and
the Trust as advisors. By April 2009, there were 76 PFI hospital contracts worth
a capital value of £6 billion (House of Commons Committee of Public Accounts, 2011).
As highlighted by Pollock and Dunnigan (1998), due to the private nature of PFIs
commercial agreements, FBCs in particular are rarely made public. Pollock et al. (1997)
1. Strategic outline case (SOC) Prepare outline sketch of project and obtain approval to proceed
from capital advisory group
2. Outline business case (OBC) Define service requirements, appraise the options and make the
case for change in an OBC, obtain approval to process
3. Preparation for procurement Translate approved option into a detailed specification of
outputs, outcomes and desired allocation of risks
4. Procurement process Already suitable providers and the best obtainable privately
financed solution through a procurement process Table II.
5. Full business case (FBC) Complete the definitive investment appraisal and FBC and Summary of the private
obtain approval finance initiative
6. Contracts award Finalise, award and implement the contract (PFI) process
JEIM had fears that as PFI bed modelling or activity assumptions were rarely testing it
26,1/2 would lead to a shrunken NHS unable to provide a range of services to all sections of
the community. Whilst the value for money of PFIs is outside the scope of this paper,
there is little evidence to support the notion of a shrunken NHS unable to support a full
range of services, 15 years post Pollock et al.’s paper.
In many ways perhaps these contractual arrangements brought some clarity to the
16 stakeholder/healthcare planner relationship. Services to provide healthcare planning
advice (including bed and activity modelling) generally were clearly defined and
budgeted. Contractual arrangements also tended to reduce the physical number of
stakeholders in relation to healthcare planning assignment. In these instances, a key
stakeholder (or stakeholders) often acted on behalf of other stakeholders. As such, a
key stakeholder (or stakeholders) acted as the link to other “absent” stakeholders as
described by Young et al. (2009).
To perform the space planning functions, healthcare planners often worked
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of the health sector. The health sector already uses rules of thumb widely to model
beds and activity (e.g. Bagust et al., 1999) 85 per cent bed occupancy, and a range of
guidance notes to define clinical spaces and beds for emergency departments, theatres
and outpatient rooms. Arguably, the challenge now and in the future, will be to develop
more sophisticated modelling and simulation tools, in shorter timescales, to better
address real stakeholder issues and challenges in the health sector.
6. Conclusions
The health sector already uses methods to model beds and activity. In many respect,
the current rules of thumb were pragmatic approaches to support the NHS capital
build programme under New Labour. Now the upgraded NHS estate is largely in place,
the focus in this current climate is how to make it more operationally efficient.
The academic community needs to be more in tune with the real-world
requirements of health stakeholders, developing a larger percentage of Class A papers
as defined by Eldabi (2009). The academic community also need to be more open to the
challenge of condensing wicked problems into pragmatic solutions. Bagust et al.’s
(1999) 85 per cent bed occupancy rule of thumb serves as a splendid example; sound
academic modelling, shrinking a wicked concept into a rule of thumb widely used by
both the health sector and the healthcare planning community. The health sector is
unique in some elements, but perhaps, the sector itself needs to be more open to ideas
from other sectors, for example simulation modelling and Lean. Finally, health
planners need to build their capability to take advantage of its relationships with
health stakeholders and develop a stronger role acting as a link between the simulation
modelling, the academic world and the health sector.
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Corresponding author
Anthony Virtue can be contacted at: anthony.virtue@echarris.com