There is just patient, insurer and hospital, to keep the story simple. Patient pays fair price for the insurance, hospital delivers the service the patient needs and insurer pays the hospital for services. And everyone is happy. Easy, isn't it? Well, not quite.
Patients want to pay as less as possible for the insurance but requires all services of highest quality available. Insurer, on the other hand wants the insurance payment to be as high, while payments to hospitals as low as possible. From hospital point of view, materials and manpower used to serve the patient must be as cheap as possible while the number of cashable activities should be highest imaginable. This definitely complicates the situation and creates dynamic behavior that is far away from equilibrium. Or not? There is no certainty without further steps taken, by which I mean the simulation, so we have to wait a bit for final results; we are still pretty far from that. Tackling the dynamics could be tricky, because of the complexity embedded in systems. Figures 1 and 2 also describe large systems but the number of elements is low as well as the level of detail. Trying to dig deeper greatly increases the number of elements. Using s large number of elements in plain text usually means total confusion for the reader and in some cases even for the writer. Using the systems thinking causal loop diagrams might solve the problem of complexity and clarity that usually go against each other. Markings at arrow tops of +/- denote the relationship tendency. What does that mean? In Figure 3, the + arrow from Patient needs to Patient services demand remaining means that the higher the Patient needs, the higher the Patient services demand remaining. In other words the more the patient needs, the more needs to be done to satisfy the need. The exact opposite works well too. The lower the need, the less needs to be done to satisfy the need, therefore the lower is the patient services demand remaining. Obvious, isn't it?
To describe what goes on in the Figure 60, try to follow the following. The higher the patient needs, the higher the patient services demand remaining. The higher the hospital services supply, the lower the patient services demand remaining (the more the hospital performs the less needs to be done). The less there will be to perform, the higher the patient satisfaction. The higher the hospital service supply, the higher its expenses. Is that clear? Probably, but this is not the whole story.
We are using our expertise to model any problem of health care policy from any of these points. No matter if you are running your own private practice, hospital, chain of hospitals, insurance company or ministry of health. Our approach allows you to ask questions "what happens if..." or "what should I do in order to...". How do you evaluate your policy? Using spreadsheets? Spreadsheet is a fine tool when the problem at hand is static. That means - it does not change over time. Spreadsheet is also sufficient when relationship between variables (cells) is liner. Spreadsheet is unable to cope with delays. When there is no delay in what you're solving (like reaction to your policy) you are still fine with the tool. Another thing you have to omit in your spreadsheet calculation is a feedback. All of the questions above form a feedback structure but you won't see it in you table. Any attempt to create circular structure will end up in error message in spreadsheet. Simply stated, you need a better tool to answer questions asked above or any other you may have.
Have a look at some of our projects in this area: