2

nd Edition

HOSPITAL ADMINISTRATION AND MANAGEMENT A Comprehensive Guide

HOSPITAL ADMINISTRATION AND MANAGEMENT A Comprehensive Guide Second Edition

Joydeep Das Gupta PGPM PGHRM DRTM DHA (Six Sigma Green Belt) Trained in Hospital Administration and TQM Member Tech Committee AHPI

Associate Advisor Management4health GmBH Frankfurt, Germany Ex-Chief Director (Hospital Management Program and Hospital Project Planning) Allen Medical International, Los Angeles, California, USA Ex-CAO, KPC Medical College and Hospital, Kolkata, West Bengal, India Ex-HR and AO, Universal College of Medical Sciences (UCMS), Nepal Ex-Chief Hospital Operation and Head (HR) Yashoda Group of Hospitals New Delhi, India

Foreword

Sudhir Gupta

The Health Sciences Publisher New Delhi | London | Philadelphia | Panama

Jaypee Brothers Medical Publishers (P) Ltd. Headquarters Jaypee Brothers Medical Publishers (P) Ltd. 4838/24, Ansari Road, Daryaganj New Delhi 110 002, India Phone: +91-11-43574357 Fax: +91-11-43574314 E-mail: [email protected] Overseas Offices J.P. Medical Ltd. 83, Victoria Street, London SW1H 0HW (UK) Phone: +44-20 3170 8910 Fax: +44(0)20 3008 6180 E-mail: [email protected]

Jaypee-Highlights Medical Publishers Inc. City of Knowledge, Bld. 237, Clayton Panama City, Panama Phone: +1 507-301-0496 Fax: +1 507-301-0499 E-mail: [email protected]

Jaypee Brothers Medical Publishers (P) Ltd. 17/1-B, Babar Road, Block-B, Shaymali Mohammadpur, Dhaka-1207 Bangladesh Mobile: +08801912003485 E-mail: [email protected]

Jaypee Medical Inc. 325, Chestnut Street, Suite 412 Philadelphia, PA 19106, USA Phone: +1 267-519-9789 E-mail: [email protected]

Jaypee Brothers Medical Publishers (P) Ltd. Bhotahity, Kathmandu, Nepal Phone: +977-9741283608 E-mail: [email protected]

Website: www.jaypeebrothers.com Website: www.jaypeedigital.com © 2016, Jaypee Brothers Medical Publishers The views and opinions expressed in this book are solely those of the original contributor(s)/author(s) and do not necessarily represent those of editor(s) of the book. All rights reserved. No part of this publication may be reproduced, stored or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission in writing of the publishers. All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners. The publisher is not associated with any product or vendor mentioned in this book. Medical knowledge and practice change constantly. This book is designed to provide accurate, authoritative information about the subject matter in question. However, readers are advised to check the most current information available on procedures included and check information from the manufacturer of each product to be administered, to verify the recommended dose, formula, method and duration of administration, adverse effects and contraindications. It is the responsibility of the practitioner to take all appropriate safety precautions. Neither the publisher nor the author(s)/editor(s) assume any liability for any injury and/or damage to persons or property arising from or related to use of material in this book. This book is sold on the understanding that the publisher is not engaged in providing professional medical services. If such advice or services are required, the services of a competent medical professional should be sought. Every effort has been made where necessary to contact holders of copyright to obtain permission to reproduce copyright material. If any have been inadvertently overlooked, the publisher will be pleased to make the necessary arrangements at the first opportunity. Inquiries for bulk sales may be solicited at: [email protected]

Hospital Administration and Management: A Comprehensive Guide First Edition: 2009 Second Edition: 2016 ISBN: 978-93-5250-132-8 Printed at Repro India Limited

A Tribute The fruit of silence is prayer, the fruit of prayer is faith, the fruit of faith is love, the fruit of love is service, the fruit of service is peace —Nobel Laureate Mother Teresa

Clouds come floating into my life, no longer to carry rain or usher storm, but to add color to my sunset sky —Nobel Laureate Kabi Guru Rabindranath Tagore

Foreword I am happy to know that the second edition of Hospital Administration and Management: A Comprehensive Guide authored by Dr Joydeep Das Gupta is being published. Hospital Administration and Management is a complex and challenging task. Hospital administrators and managers at all levels have to spend significant amounts of time on communication, problem solving, decision making, capacity building and cost containment. This book may be helpful to readers for increasing efficiency and effectiveness in day-to-day running of their organizations.

Sudhir Gupta

Additional Deputy Director General Directorate General of Health Services Ministry of Health and Family Welfare Government of India New Delhi, India

PreFace

to the

Second edition

An attempt has been made to update Hospital Administration and Management: A Comprehensive Guide. Hospital administration is a very essential subject to learn to run a hospital efficiently. The second edition of this book has been elaborated with reference to current techniques and practice of hospital administration and management so as to make the text more easily comprehensible to all clinicians/nursing team members/hospital administrators and students concerned. In the preparation of this edition, I have consulted many publications of different authors. A select bibliography is given at the end of the book for this purpose. Acknowledging my indebtedness to all such authors and their publishers as well as of providing guidance to those readers who may pursue further studies. I am also indebted to my family members, friends, colleagues and publishers, who have helped much in the publication of the second edition of the book.

Joydeep Das Gupta

PreFace

to the

FirSt edition

An attempt has been made to present the basic thought on Hospital Administration and Management: A Comprehensive Guide in this short treatise. Hospital administration is very important to run a hospital efficiently. This book has been elaborated with reference to current techniques and practice of hospital administration and management so as to make the text more easily comprehensible to all Hospital Managers, Administrators and students concerned. In the preparation of this volume, I have consulted many publications of different authors. A select bibliography is given at the end of the book for this purpose. This book is a ready reference for doctors, administrators and students. Acknowledging my indebtedness to all such authors and their publishers as well as of providing guidance to those readers who may pursue further studies. I am also indebted to my beloved wife, friends, colleagues and publishers who have helped much in the publication of the book.

Joydeep Das Gupta

acknowledgmentS I would like to express my sincere gratitude to all those who have helped me in the writing of this book. My sincere thanks to my beloved wife and my son Saumyadeep Das Gupta for their constantly motivating and supporting me by giving writing space for updating the said academic venture. Above all my parental figure, my philosopher and guide Sri Kajal Dasgupta (Father-in-law), Retd (Govt of India), who always supported me during my career vacant period. Without his active supported, it is impossible to control my mental status during my distress period resulting in the release of such a small book with updated edition. My hearty thanks to my aunty Mrs Manjushree Roy Choudhury wife of late Dr Nalini Ranjan Roy Choudhury, famous historian of India (my uncle), who always motivated me in my healthcare journey. In addition, my best team members such as Saumya, Priyanka, Amit, Sudip, and many more who always appreciate my each healthcare concept and stand with me till date which also motivated me to update this academic venture. I express my heartfelt thanks to Dr Girdhar J Gyani, Ex-Secretary General, Quality Council of India, Founder of National Accreditation Board for Hospitals and Healthcare Providers (NABH) and Present CEO, Association of Healthcare Providers of India (AHPI, New Delhi); Col CS Bharadwaj (Ex-CEO), Universal College of Medical Sciences (UCMS) Teaching Hospital, Nepal; Mr Rupak Barua (Ex-COO), Calcutta Medical Research Institute (CMRI), Kolkata, and Now Group CEO, AMRI Group of Hospitals, Kolkata; Professor Chandra Sekhar (CEO), Management System Institute, Greater Noida, Uttar Pradesh, for their guidance and support. While preparing my second edition, I have discussed with important dignitaries from healthcare which includes Professor FM Tripathi (Plastic Surgery), Ex-Director, Smile Train Program, in UCMS, Nepal, and Ex-Head, Banaras Hindu University, who always guided me to learn remote level of healthcare delivery system. My sincere gratitude to Dr Sudhir Gupta, Additional Deputy Director General, Directorate General of Health Services, Ministry of Health and

xiv

Hospital Administration and Management: A Comprehensive Guide

Family Welfare, New Delhi, India, for his professional space to me while preparing this edition. I express my thanks to Professor Michael Niechzial of Accadis University, Hamburg, Germany and Chairman and Founder Partner of Management4health, Frankfurt, Germany, for his kind guidance to learn global perspective of healthcare management. Other important healthcare entrepreneurs whose association enriched my knowledge are Dr Dinesh Arora, Chairman, Yashoda Group of Superspecialty Hospitals, Delhi, NCR, and Dr Kali Pradeep Choudhuri, Chairman, KPC Group of Hospitals and Medical Colleges, US and India. My sincere gratitude to both. Above all, I wish to thank my parents Mr Sachindra Das Gupta, Retd (Govt of India) and Mrs Kalyani Das Gupta, Ex-Govt Teacher, who always blessed me for such academic venture, not to forget cooperation of my two younger sisters freelance journalist and owner MMC (Media house), my brother-in-law Anirban Choudhury, leading journalist, and Joysree, Consultant (Advertising), and blessings of my God.

contentS SECTION I: HOSPITAL ADMINISTRATION AND MANAGEMENT 1. Hospital Administration

3

Brief Concept 3

2. Management Principles

4

Brief Outline 4

3. Functions of Management

6

A Brief Outline 6 Decision Making 7 Organization 8 Organization Structure 8 Staffing 10

4. The Role of Hospital Administrator

16

Medical or Nonmedical Person? 16 Skills of Effective Managers/Administrators 16 Job Description of Hospital Administrator or Hospital Manager 18 Role of Hospital Administrators in Legal Matters 19 Counseling as a Tool in Hospital Administration 20

5. Task of Other Top Executives: Healthcare Organization Who is Chief Executive Officer? 22 Responsibilities of Head of the Department: Clinical 24 Head Human Resource or Chief Peoples Officer 28 Head Finance/Chief Finance Officer 31 Head Emergency Medical Service/ Chief Medical Officer Emergency Service 31 Head Nursing (Matron)/(Nursing Superintendent) 33 Head Stores (Chief Store Officer)/ Manager (Inventory Control) 33 Head Dietetics (Chief Dietician) 35 Head Public Relations/Chief Public Relation and Protocol Officer 35 Patient Coordinator 36 Head Information Technology (Chief Information Officer) 37

22

Join us on f facebook.com/JaypeeMedicalPublishers