MGT879HealthcareOperations ProfessorElisaLong

Spring2011 CourseSyllabus
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MGT879HealthcareOperations
CourseSyllabus

CONTACTINFO
ProfessorElisaLong
Office:52HillhouseAvenue,room321
Phone:203.436.4966
Email:elisa.long@yale.edu

CLASSINFO
January11February22,2011
Tuesdays,Thursdays10:10am11:30am
SOM,135ProspectStreet,RoomA30

OVERVIEW
WithhealthcarespendingintheUnitedStatesexceeding16%ofGDPandthedemandfor
healthservicescontinuingtoincrease,improvementsinthequalityandefficiencyofhealthcare
deliveryareurgentlyneeded.Thiscourseexploresopportunitiesforimprovementinthedesign
andmanagementofhealthcareoperations.Thecourseutilizesoperationstoolssuchas
optimizationwithExcelsolver,scheduling,economicanalysis,decisionanalysis,andMonte
Carlosimulation.

COURSEOBJECTIVES
Thiscourseaimstodiscussapplicationsofoperationsmanagementinthehealthcareindustry.
Specifically,thecourseobjectivesareto:
Identifykeyoperationalchallengesfacinghealthcaremanagers.
Discusstechniquesforimprovingefficiencyinavarietyofsettings(hospitals,primarycare,
andprivatesector),andtheassociatedtradeoffs.
Developanunderstandingofhowquantitativetoolsandanalysescanimprovedecision
makinginthehealthcareindustry.

GRADINGPOLICY
Theclasswillincludeacombinationoflectures,casediscussions,andinclassexercises.
Studentsareexpectedtoattendeachclassandbringlaptopsforinclassdemonstrations.
Requiredreadingassignmentsareoutlinedbelow.Thediscussionquestionsareintendedto
helpstudentsprepareforclassdiscussion.Thefinalgradewillbebasedon:
Classparticipation(20%)
Homework(40%)
Casestudy(40%)
MGT879HealthcareOperations ProfessorElisaLong
Spring2011 CourseSyllabus
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CASESTUDY
ThecaseinvolvesbuildingadecisiontreeandsimulationmodelforMercksdecisiontolicense
anewdrug.Groupswillsubmita35pageexecutivesummaryandbepreparedtodiscusstheir
findingsinclass.

COURSEMATERIAL
Recommendedtextbook:QuantitativeMethodsinHealthCareManagement(2
nd
edition)
byYasarA.Ozcan(ISBN9780470434628,$65atAmazon.com)
Software:DecisionToolsSuite,includingPrecisionTreeand@Risk,whichareExceladdins
includedinthetextbookPracticalManagementScience.Studentswhodonothavethe
textbookcandownloada15dayfreetrialorbuyastudentversionofthesoftwarefor$50.
http://www.palisade.com/academic/students.asp
Anyadditionalcases/readingswillbepostedonClassesv2.

HONORCODE
StudentsareexpectedtofollowSOMsHonorCodewhensubmittinganassignmentorgroup
project,andtofollowYalesguidelinesonappropriatecitationswhenwriting.
http://writing.yalecollege.yale.edu/understandingandavoidingplagiarism
Pleasecontactmeanytimeifyouhavequestionsregardingthispolicyorifyouareunsurehow
toproperlyciteasource.

COURSEOVERVIEW

Class Date Topic Dueinclass

1 Tuesday,Jan11 Resourceallocationandlinearprogramming
2 Thursday,Jan13 Hospitalstaffscheduling
3 Tuesday,Jan18 Physician/patientappointmentscheduling
4 Thursday,Jan20 Costeffectivenessanalysis(CEA)ofmedicaltechnology Homework1
5 Tuesday,Jan25 CEApart2
6 Thursday,Jan27 HIVandinfluenzamodeling
7 Tuesday,Feb1 Probabilitytrees Homework2
8 Thursday,Feb3 Decisiontrees
9 Tuesday,Feb8 MonteCarlosimulation Homework3
10 Thursday,Feb10 Casestudy(FreemarkAbbeyWinery)
11 Tuesday,Feb15 Pricinghealthinsurancecontracts Homework4
12 Thursday,Feb17 Healthinsurancepart2
13 Tuesday,Feb22 Casestudy(Merck&Co)andclasssummary Casewriteup
MGT879HealthcareOperations ProfessorElisaLong
Spring2011 CourseSyllabus
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MANAGINGHOSPITALOPERATIONS

1) Jan11 Resourceallocationandlinearprogramming

2) Jan13 Hospitalstaffscheduling

3) Jan18 Physician/patientappointmentscheduling
MurrayandBerwick(2003)Advancedaccess:reducingwaitinganddelaysin
primarycare,JAMA
**Discussionquestions**
Whataretheadvantagesanddisadvantagesofadvancedaccess?
Whataresomepossibleobjectivesataprimarycareclinic?
Whatuncertaintiesshouldbeconsideredwhenschedulingpatients?
Whatdecisionsneedtobemadewhendesigninganappointmentsystem?

VALUINGMEDICALINTERVENTIONS

4) Jan20 Costeffectivenessanalysis(CEA)ofmedicaltechnology
Readoneofthefollowing(tobeassignedlater):
Pignoneetal(2006)Aspirin,statinsorbothdrugsfortheprimaryprevention
ofcoronaryheartdiseaseeventsinmen:acostutilityanalysis,Annalsof
InternalMedicine
KimandGoldie(2008)HealthandeconomicimplicationsofHPVvaccination
intheUnitedStates,NEJM
Muelleretal(2008)Costeffectivenessanalysisofinsecticidetreatednet
distributionaspartoftheTogoIntegratedChildHealthCampaign,Malaria
Journal
SmithandRoberts(2000)Thecosteffectivenessofsildenafil(Viagra),Annals
ofInternalMedicine
Rafteryetal(2007)Ranibizumab(Lucentis)versusbevacizumab(Avastin):
modelingcosteffectiveness,BritishJournalofOphthalmology
Haddrill(2005)LucentisvsAvastin:amaculardegenerationtreatment
controversy
Hoergeretal(2004)Screeningfortype2diabetesmellitus:acost
effectivenessanalysis,AnnalsofInternalMedicine

5) Jan25 CEApart2
Gillick(2004)Medicarecoveragefortechnologicalinnovationstimefornew
criteria?,NEJM
Garber(2008)Amenuwithoutprices,AnnalsofInternalMedicine
Neumannetal(2005)Medicareandcosteffectivenessanalysis,NEJM
MGT879HealthcareOperations ProfessorElisaLong
Spring2011 CourseSyllabus
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Tunis(2004)WhyMedicarehasnotestablishedcriteriaforcoverage
decisions,NEJM
**Discussionquestions**
HowdoesMedicaremakecoveragedecisions?
Whatarethebenefitsofcosteffectivenessanalysis?Whatarethelimitations?

PUBLICHEALTHAPPLICATIONS

6) Jan27 HIVandinfluenzamodeling

DECISIONMAKINGUNDERUNCERTAINTY

7) Feb1 Probabilitytrees

8) Feb3 Decisiontrees

9) Feb8 MonteCarlosimulation

10) Feb10 Casestudy:FreemarkAbbeyWinery

Krasker(1980)FreemarkAbbeyWinery,HBSCase
**Discussionquestions**
Buildadecisiontreethatshowsthesequenceofdecisionsanduncertainevents
thatFreemarkAbbeyfaces.Whatistheiroptimaldecision?

HEALTHINSURANCEAPPLICATIONS

11) Feb15 Pricinghealthinsurancecontracts

(Recommended)RothschildandStiglitz(1976)EquilibriuminCompetitive
InsuranceMarkets,QuarterlyJournalofEconomics

12) Feb17 Healthinsurancepart2

CASESTUDYANDCLASSSUMMARY

13) Feb22 Casestudy:Merck&Company

Merck&Company:ProductKL798,UniversityofVirginiaDardenCase