Surgical Case-Mix and Discharge Decisions: Does Within-Hospital Coordination Matter?

How to Assess the Benefits of Coordination in Managing Hospital Resources In providing patient care, hospitals rely on multiple types of resources, such as operating rooms, recovery beds, labs, and diagnostic equipment, that are often controlled and managed as separate entities and by different decision makers. In “Surgical Case-Mix and Discharge Decisions: Does Within-Hospital Coordination Matter?” Hessam Bavafa, Lerzan Örmeci, Sergei Savin, and Vanitha Virudachalam focus on the interaction between “front-end’’ resources, such as operating rooms, and “backroom’’ resources, such as recovery beds, and compare hospital profitability under the fully coordinated, optimal approach to hospital resource management and under alternative decentralized approaches often encountered in practice. The paper identifies settings in which the benefits of coordination are likely to be high as well as settings in which those benefits are at best moderate. In a given hospital, only hospital managers are in a position to estimate with any degree of certainty potential costs of coordinated management of hospital resources, and the paper’s analysis of the benefits of coordination empowers hospital managers to make informed decisions on the desirability of replacing the often decentralized “status quo” by centralized resource management.