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.