Logistics in the health care industry

Pamela Jarrett

International Journal of Physical Distribution & Logistics Management · 1998 · 124 citations · 66 references

Concepts

TL;DR

The study investigates whether regulatory policies or industry procedures impede the adoption of just‑in‑time systems in health care, and evaluates the feasibility and potential benefits of implementing such systems. The authors systematically compared just‑in‑time benefits across the U.S., U.K., and German health care sectors with manufacturing, and proposed market restructuring to foster price competition. They conclude that controlling health‑care prices requires reducing product costs or imposing limits on prices and service quantities.

Abstract

The purpose of this study was to undertake a diagnostic investigation of the international health care logistical environment to determine if regulatory policies or industry procedures have hindered the implementation of just‐in‐time systems. The analysis was conducted in a systematic manner and compared the anticipated benefits with those validated in other industries from the implementation of just‐in‐time. The study also compared the health care industry environments of the USA, UK, and Germany with the manufacturing industry. The author focussed on answering: first, why has the health care industry not implemented just‐in‐time; second, is it feasible for a healthcare provider to implement a just‐in‐time logistical system; and third, what benefits will a health care provider achieve by implementing just‐in‐time. Concludes that controlling health care pricing requires reducing product cost or continues to place limits on product prices, quantities of services, or both. An alternative approach to controlling prices is to restructure the market for health services to encourage greater price competition among providers.

References

66