The Healthcare Entrepreneur Blog

Something to learn from the airline industry?

by Tannus Quatre PT, MBA | February 10th, 2008 | No responses

This isn’t going to work for every practice, but the science behind overbooking warrants at least a second look.  This article from American Medical News goes into detail about when, where, and how overbooking might be appropriate in healthcare.

“I think everyone’s first reaction to overbooking in heath care is, ‘That’s got to be awful,’ and we thought that, too,” said Dr. Lawrence, an associate professor of operations management at the University of Colorado at Boulder Leeds School of Business. He is an adviser to Dr. LaGanga, who conducted the research for her dissertation as a PhD candidate and is now an instructor at Leeds. “But we knew it happened, so we wanted to see when benefits exceed the costs.”

Dr. Lawrence agreed that “the real cost is if you do overbooking, there will be patient waits and overtime to be sure.” But he argues that overbooking could still be beneficial for some practices. The dilemma is determining when it might work or when the stakes are too high.

Tannus Quatre PT, MBA
Tannus Quatre is a private practice consultant and principal with Vantage Clinical Solutions, Inc., a nationwide healthcare consulting and management firm located in Bend, OR and Denver, CO. Tannus specializes in the areas of healthcare marketing, strategy, and finance, and can be reached through the Vantage Clinical Solutions website.