Medical Group Management Association
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Operations Management

Building an effective business plan and managing daily operations

Operations management in a medical practice consists of developing and implementing an effective business plan and managing daily operations.

Operations management performance objectives include:

Process improvement
  • Explain how quality assessment tools (process maps, run charts, Pareto diagrams, flowcharts, affinity diagrams and decision matrices) can identify organizational needs, potential risks and desired outcomes.
  • Establish a process-improvement analysis to maintain and enhance quality within a medical group practice.

Master budgets, employment law, healthcare rules/regulations and project management
  • Define a master budget and explain its use in a medical group practice.
  • Interpret employee-rights legislation and ensure compliance with employment laws.
  • Apply requirements related to employment offers and contracts.
  • Describe the legal relationship between patient and provider.
  • Identify an example of a healthcare ethical dilemma.
  • Develop a suitable budget for a project that supports the strategic plan.
  • Identify the important risks of a project that may affect the strategic plan.
  • Apply appropriate techniques to assess ongoing project performance and ensure consonance with the strategic plan.

Purchasing and asset management
  • Design an inventory-control plan to appropriately identify and purchase supplies and equipment.
  • Illustrate the steps of a procurement process.
  • Create a process for identifying and managing effective vendor relationships through purchasing alliances.

High-quality and safe environments
  • Identify and demonstrate compliance with all required regulations (for example, those of Occupational Safety and Health Administration [OSHA], Americans with Disabilities Act [ADA], ADA Amendments Act of 2008 [ADAAA]).
  • Assess, identify and resolve issues relating to facility management.
  • Describe the key stages to creating an effective facilities management strategy and implementation plan.
  • Detail the process for the proper disposal of sharps and biohazardous waste products.

Outsourced business services and external expertise
  • Identify indicators that substantiate the need to seek outsourced expertise.
  • Detail all relevant IRS rules and regulations (for example, Form 1099).
  • Perform a contract negotiation that promotes a partnership/strategic alliance and strengthens competitive position.
  • Explain how contract compliance, timeliness and quality are crucial to partnership and alliance performance.

Information technology
  • Develop a technology plan, policy and budget that support the needs and goals of the medical group practice.
  • Illustrate a technology disaster management plan in accordance with HIPAA that safeguards office and patient records, establishes a data backup and recovery plan, determines key personnel and responsibilities and identifies a process of validation and testing.
  • Manage information integrity, including release and storage of information, security and confidentiality according to HIPAA.

Communications, marketing and community relations
  • Use market research, trends, demographics, economic influences, and other pertinent factors to develop a marketing plan.
  • Use components of the marketing plan to develop a corporate image and branding strategy.
  • Use various forms of media (print, electronic, social) to create advertisements that promote community outreach and collaboration.

Compensation plans, revenue allocation methods, expense allocation methods, and merger and acquisition agreements
  • Describe the goal of a compensation plan and illustrate the steps to develop a plan that drives employee incentives and supports the organization’s goals.
  • Evaluate types of benefit plans, including defined benefit, defined contribution, 401(k), 403(b), self-directed, employer-directed and profit-sharing plans.
  • Ensure confidentiality of compensation data.
  • Discuss how revenue and expense allocation methods can be used to establish productivity and compensation benchmarks for physicians and staff.

Physician conduct and performance expectations
  • Create policy standards for physician conduct.
  • Explain corrective action regarding conflicts of interest, performance issues and disruptive behavior that supports organization leadership, the governing body or a professional standards committee.
  • Provide an explanation of the most appropriate course of action when facilitating a conflict resolution.
  • Recognize inappropriate communication between physicians and staff.


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