Knowledge Management (KM) in health care sector has become a big issue with
the entry of private players in Hospital & health care industry. Based on a Value
Creation Model for corporate Hospitals the paper emphasizes the role of KM to
combine fostering of innovations and improvement of services with revenue
enhancement, cost reduction and overall productivity management.
Knowledge Management (KM) in health care sector has become a big issue with
the entry of private players in Hospital & health care industry. Based on a Value
Creation Model for corporate Hospitals the paper emphasizes the role of KM to
combine fostering of innovations and improvement of services with revenue
enhancement, cost reduction and overall productivity management.
Knowledge Management (KM) in health care sector has become a big issue with
the entry of private players in Hospital & health care industry. Based on a Value
Creation Model for corporate Hospitals the paper emphasizes the role of KM to
combine fostering of innovations and improvement of services with revenue
enhancement, cost reduction and overall productivity management.
H ealthcare service is a team based approach, and in t o d a y s information-driven economy, uncovering the most opportunities - and ultimately derive the most value - from intellectual rather than physical assets is the king pin for success. The capacity to manage human intellect, and to transform the intellect into a service or a group of services is fast becoming the most important phenomenon in the ever- changing competitive environment. To get the most value from a hospitals intellectual assets, Knowledge Management plays a significant role in sharing that, knowledge must be shared and serves as the foundation for collaboration. Continuous upgradation of knowledge and application of the new tools and techniques, leaving no room for error and looking for new ways to exceed the customer expectations and effective utilization of knowledge and human skills through knowledge management (KM) concept which help the organizational objectives of continuous improvement of quality and customer delight. This paper aims to review the conceptual aspects of knowledge Management in a corporate hospital and identify key factors for creating value to the organization. Introduction: Knowledge Management is the process through which organizations generate value from their intellectual and knowledge-based assets. Most often, generating value from such assets involves sharing them among employees, departments and even with other hospitals in an effort to devise best practices. KM is also made up of a whole range of soft issues that involves fostering an environment in which knowledge and information are shared and new knowledge is created. A growing number of policymakers, healthcare providers, and consumers believe information resources hold the key to improving the healthcare system. These advocates say that judiciously collected and effectively communicated information can help professionals provide better care, turn patients into enlightened consumers of health services, and ultimately Knowledge Management (KM) in health care sector has become a big issue with the entry of private players in Hospital & health care industry. Based on a Value Creation Model for corporate Hospitals the paper emphasizes the role of KM to combine fostering of innovations and improvement of services with revenue enhancement, cost reduction and overall productivity management. enable individuals and communities to address some of the root causes of illness before professional intervention is required. According to Tom Davenport and Larry Prusak Knowledge Management is fluid mix of framed experience, values, and contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information. According to James Quinn Knowledge Management is a professional intellect in organization centers on know-what, know-how, know-why, and self-motivated creativity. Types of knowledge: In general, however, intellectual and knowledge-based assets fall into one of two categories: explicit or tacit. Included among the former are assets such as patents, policies, procedures, patient rights, confidentiality of information, patient records management, training programs, business plans, marketing research and customer relationship programs. As a general rule of thumb, explicit knowledge consists of anything that can be documented, archived and codified, often with the help of IT. Much Faculty Member, Apollo Institute of Hospital Administration Faculty Member, Apollo Institute of Hospital Administration harder to grasp is the concept of tracit knowledge, or the know-how contained in peoples heads. The challenge inherent with tacit knowledge is figuring out how to recognize, generate, share and manage it. KM initiative: A KM system should meet the needs of the people, not simply the needs of an elite group, To contribute to a KM system or process is; it is required What mission-critical information need to do a job? Is it previously completed project deliverables? Is it process methodologies? Is it customer information? The answers should serve as the cornerstone of your KM initiative. In hospitals the knowledge has to be managed with creation of conditions for generation and application of knowledge. Corporate Hospitals in India have already initiated the knowledge management practices to leverage tacit knowledge which lies in the skill of people. The Value chain Perspective for Knowledge Management System in corporate hospital: Hospital Value Chain: . The focus of value chain of a corporate hospital is to create value through the activities categorized as primary and secondary, The primary activities involve patient care like Front Office & Billing, Consultations, Diagnostics and Operations etc.. The secondary activities (Support activities) include HR.; procurement, House Keeping; Food and Beverages, Technology, marketing & Sales, Accounts & Finance etc.. These support activities are integrating functions which .., cut across various primary activities within the organization. To gain competitive advantage for over its rivals, a hospital must deliver value to its customers through performing these activities more efficiently than its competitors or performing the activities in a unique way that create greater differentiation. An efficient value chain of a hospital leads to cost reduction; increased patient turnovers, better healthcare delivery, reputation and maximization of shareholders wealth. KM value Model for a Corporate Hospital: Creating value for stakeholders is very important in the competitive. environment. With the entry of new players and Third Party Administrators into healthcare delivery, it is high time to put all out efforts by corporate hospitals to generate surplus compared to yesteryears. In view of spiralling costs, increased employee turnover and complexity of corporate hospitals, value creation by effective and efficient healthcare management practices through adoption of knowledge management system is need of the hour. The model can consists of key partners like medical, para-medical, non medical, management and customers and the linkage among the partners for value creation is shown in the following diagram. Value creation for Key partners: Medical, Paramedical and Non- medical: The hospital is well equipped with all leading journals and encyclopedia, magazines and books available on various health related subjects. Professionals are encouraged to attend CME programs like national and international conferences, seminars, symposiums, workshops, etc., to capture and share valuable knowledge consisting of their previous live experiences, innovations and future course of actions. A unique thing of the coporate hospital is that it has a web portal where lot of information is available with respect to the organization, Figure : KM - Value creation Model of a Corporate Hosital CME, Workshops, Training programs, Conferences. Quality Circles, Focus Group work, Quality Improvement teams Customer Relationship Management Patient Education Programs Customer Relationship Management Patient Education Programs Patient Education Leafiets. KM Effective utilization of Explicit and Implicit Knowledge through data, creation, capture and sharing Culture, Communication Values, Feed back Information system Investment Decisions Health Care Management demands by efficient intelligent communication system and analyze and implement the decisions taken by the Management. The organization has identified its core competency in intellectual assets for efficient patient care and enabled pooling and sharing of knowledge through organized networked hospitals which are geographically located. Advantages of Knowledge Management: Some benefits of KM correlate directly to bottom-line savings, while others are more difficult to quantify. In todays information-driven economy , companies uncover the most opportunities - and ultimately derive the most value - from intellectual rather than physical assets. To get the most value from a companys intellectual assets, KM practitioners maintain that knowledge must be shared and serve as the foundation for collaboration. Foster innovation by encouraging the free flow of ideas Improve patient service by streamlining response time Boost revenues by getting more patient turn outs and improved bed occupancy. Enhance employee retention rates by recognizing the value of employees knowledge and rewarding them for it. Streamline operations and reduce costs by eliminating redundant or unnecessary processes ( Activity Based Costing) Become an intelligent organization with clearly defined processes based on customer needs Create good learning, development and promoting best ideas in the organization. Accessing remote information and expert opinions online - Telemedicine, prescriptions etc Healthcare information system is the key enabler for enhancing the value of information. Substantially enhance individual and group productivity in a corporate hospital by allowing the use and reuse of knowledge during day to day activities as well as in doing strategic tasks such as new drug development, technology forecasting in medical field. Conclusion: In view of ever changing demands and expectations from customers in healthcare and coupled with entry of private insurance players and third party administrators, technological changes, it is the hour of need that corporate hospitals should intensify their efforts in managing intellectual assets in their knowledge Management system. KM can be viewed not as a tool or technology but as a philosophy of the Management and the concept has to percolate down from top management to safe-guard the bottomline of the organization. It is required that a joint effort involving healthcare professionals and knowledge management experts be carried out to venture towards the realization of a knowledge rich healthcare environment. Since the healthcare industry is fast growing, lot of untapped opportunities need to be explored where the potential of Knowledge Management practices is high in the near future. Though a variety of technologies have emerged to support knowledge management solutions; the success of such initiatives is highly dependent upon organization culture and process and continuous harness of knowledge from within and outside organizations. References: 1. California Management Revievv, Volume 44, No.4, Summer 2002 p 129- 149 2. 3. Davenport, T., Making knowledge work productive and effective in Knowledge Management (Ark Group; November 2002) 4. Kaluzny, A. D. 1974. Innovation in health services: theoretical framework and review of research. Health Services Research, (9): 101-120. 5. Express Healthcare Management, Vol. 3 No. 22 , 1-15 January 2003 6. Indian Management, Vol. No.42, Issue 5, Business Standard publication; May 2003 p 32 - 40.
seminar papers, recent developments
in different areas within the organization and outside. Information can be uploaded for accessing by other professionals on the web. In order to extract the tacit knowledge of the employees they are given incentives for the best idea every month. Patients: Patient cure and care and delight are the prime objectives of the hospital. Particularly in the healthcare delivery, the information sharing is highly critical in saving many lives. As part of KM initiative, Customer Education Programs are conducted to create awareness among the patients about diseases and various precautionary measures to be taken. A recent study conducted at the hospital with respect to waiting time analysis of Ultrasound procedure found that the customer was to wait for more than 2 hours to get the procedure done due to lack of awareness and information sharing system. Subsequently, customers were given Leaflets consisting information guidelines about the procedure in advance, thereby waiting time is considerably reduced to half an hour. Due to this study, patients were very happy with reduction in waiting time and at the same time no. of patients per month also increased. Management: Once the value is created to the customers and employees automatically it leads to creation of value to the organization, all departmental heads meet everyday morning and share their experiences and problems related to concerned departments which will enable them to know about the organization workflow to take current stock of the situation. Management conduct feed back survey from the employees customers and suppliers etc. on regular basis to enable them to incorporate improvements in the system. The thrust on the management is to improve bottomline. Anticipating customer Health Care Management