Service Industry Aspects of Healthcare

02/23/2022 Compiled by Valmeek Kudesia

End-to-End Healthcare is A Service

  • 80% non-medical factors determine outcome

    • Individual's ability to influence, participate, expectations

    • Satisfaction based on individual's experience

    • Service must be reworked if unsatisfactory per individual or outcome (see value demand vs failure demand in healthcare)

  • People present to healthcare system with variation that is inherent to the reality of the customer

    • Cumulative effects of past experiences, treatments, or lack thereof

    • System cannot exert "up-stream quality control" to discard individuals before intake, like manufacturing. Imagine scenario:

      • Car factory cannot exert quality control upon size of doors received from upstream supplier

      • Cars produced at end of line must fit standard specifications or must be reworked (see value demand vs failure demand in healthcare)

    • System cannot "recover" prior state of individual before intake

  • Individual customer themselves are input into production process (not just design/intake)

  • System cannot pre-manufacture services or hold services in inventory; always triggered by demand i.e. [[pull-system]]

Goal of system is to "absorb" variety inherent to individual, not ignore inherent variety and frustrate the individual

"Absorb" = perceive need of individual + meet need + release constraints from system itself e.g. sunk costs