System Dynamics in Action: The Worse-before-better Scenario in the City Hospital - Effects of Budget Distribution to the Training & Education Department on Short-term and Long-term Profits
Type
conference paper
Date Issued
2011-07-17
Author(s)
Editor(s)
Wilby, Jennifer
Research Team
IWI5
Abstract
A major public city hospital is affected by the ongoing transformation in the Swiss health care system due to cost reduction pressure, mergers acquisitions and the mandatory introduction of Diagnosis Related Groups (DRG) by the year 2012. Facing scarce financial and personal recourses, a System Dynamics research project investigates how changes in budget allocation to the training and education department can affect the net profits of the hospital. The model simulation indicates that neither a massive cut, nor a massive increase of budget lead to the best profits in the long-term. Rather a carefully implemented adjustment of the budget at a small scale of plus 10% is suggested to realize an increase of the long-term profits. The results of the long-run simulation are counterintuitive and are explained by means of systems approach archetypes like the worse-before-better scenario, information delays, level effects and limits to growth.
Language
English
HSG Classification
not classified
Refereed
Yes
Book title
Proceedings of the 55th Annual Meeting of the ISSS
Event Title
55th Annual Meeting of the International Symposium on Services Science (ISSS)
Event Location
Hull, UK
Event Date
17.-22.07.2011
Subject(s)
Division(s)
Eprints ID
214347