363. A Patient-Centered Hospital Procurement of Physician Preferred Implants
Invited abstract in session TB-11: Hospitals, stream OR in Healthcare (ORAHS).
Tuesday, 10:30-12:00Room: Clarendon SR 1.03
Authors (first author is the speaker)
| 1. | Renato de Matta
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| Business Analytics and Information Systems, University of Iowa |
Abstract
This paper studies the hospital’s procurement of physician preferred implants where both hospital surplus (profit) and patient surplus (value) are maximized. For better flexibility with minimal revision risk to patients, we introduce the substitution of another device that belongs in the category of the physician-preferred implant. This allows for improving the hospital surplus through larger revenues and volume discounts, although it implies that there is an additional cost to train the physician who may need to use the substituted implant and associated surgical procedure for safety and quality assurance. We model the procurement problem as a single period multi-product stochastic programming problem with substitution. The problem is NP-hard. We propose two heuristic procedures for finding good feasible solutions and for estimating the bound on the optimal value. The results of our experiments using patient-reported costs and total hip replacement outcomes from the medical literature show that a modest increase in flexibility could improve the hospital’s financial performance, produce better patient outcomes, and reduce the negative effects of demand uncertainty.
Keywords
- Health Care
- Decision Support Systems
- Inventory
Status: accepted
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