title: Improving hospital productivity under PPS: managing cost reductions.
abstract: In this article, a number of tenets of faith concerning hospital productivity improvement are explored: cutting staff harms service quality; more staff buys more quality; reducing staff translates into reduced employee morale; and performance gains come only to those who work harder. Alternative mechanisms by which the organization may work smarter, rather than harder, are advanced. The use of efficient scheduling systems and work unit reorganization, especially when reinforced by an incentive pay plan, has led to significant scale cost reductions.
mesh_terms: D003953:Diagnosis-Related Groups; D004526:Efficiency; D004649:Employee Incentive Plans; D006746:Hospital Bed Capacity, 500 and over; D006801:Humans; D008330:Management Audit; D008824:Michigan; D009013:Morale; D009934:Organization and Administration; D010557:Personnel Administration, Hospital / Q000191:economics*; D010561:Personnel Staffing and Scheduling