ORAHS2024
Abstract Submission

199. Exploring Dual Practice in Healthcare Operations Management

Contributed abstract in session HB-2: Analytics, stream Regular talks.

Thursday, 11:00-12:30
Room: Room S1

Authors (first author is the speaker)

1. Fatemeh Tehranikia
Ivey Business, University of Western Ontario
2. Greg Zaric
Ivey School of Business, Western University
3. Yang Li
University of Western Ontario, Ivey Business School

Abstract

This study investigates how multi-channel healthcare service provision affects patient decision-making and the efficiency of healthcare delivery. Our analytical model compares two practice regimes: solo practice (where the physician serves exclusively in public or private sectors) and dual practice (where the physician allocates their time between sectors). We explore the outcomes of transitioning from solo to dual practice, including changes in throughput, the percentage of patients treated, and wait times. Our model features a two-stage game. Initially, the physician determines the private service fee and time allocation, which in turn establishes channel capacities. Subsequently, patients decide whether to opt for public service, private service or forego treatment altogether (balk). Their choice depends on their perceived value of the service, the private service fee, and the expected wait time in each sector.
Our model contributes to the service operations management literature by challenging conventional field assumptions. This study is the first to consider both the private fee and channel capacities as decision variables, determined by physician-patient interaction. Our findings offer insights into the impact of dual practice on healthcare delivery and patient choice. Furthermore, we explore how a regulating body can influence the physician’s time allocation between public and private sectors, as well as patients' decisions regarding treatment or balking.

Keywords

Status: accepted


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