EURO 2024 Copenhagen
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794. A Patient-Centered Hospital Procurement of Physician Preferred Implants

Invited abstract in session MA-17: Decision support in healthcare, stream OR in Health Services (ORAHS).

Monday, 8:30-10:00
Room: 40 (building: 116)

Authors (first author is the speaker)

1. Renato de Matta
Business Analytics and Information Systems, University of Iowa

Abstract

We study the procurement of physician-preferred implants where both the hospital and patient surplus are considered and optimized. For better flexibility, we introduce the use of alternate devices instead of preferred ones. Considering alternate implants allows for improving the hospital surplus through larger revenues and volume discounts, although it implies an additional cost to cross train physicians who may need to use implants and associated surgical procedures they are less familiar with. The problem is NP-hard. We propose two heuristic procedures for quickly finding nearly optimal solutions and for estimating the optimality bound. We demonstrated results of a series of experiments where we considered different scenarios corresponding to several patient demand distributions across patient-types and emphasized the benefits of alternate implants and physician cross-training. Using patient-reported costs and total hip replacement outcomes from the medical literature in the experiments, we show that the increased flexibility physicians acquire from cross-training: (1) Improves patient outcomes; (2) Improves the hospital’s financial performance by increasing hospital revenues and cost savings from volume discounts when larger orders of certain medical devices are placed; (3) Improves patient and physician satisfaction; (4) Reduces the negative impact of demand uncertainty on a hospital’s financial performance.

Keywords

Status: accepted


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