South Florida Hospital News
Sunday August 25, 2019

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August 2018 - Volume 15 - Issue 2




The Strategic Case for the High Reliability Organization Model in the Healthcare Industry

The U.S. healthcare industry is resilient, vast, complex, and unique among advanced industrialized countries. On the other hand, this industry operates in silos, fragmented, and it does not function as an integrated, efficient, and coordinated healthcare delivery system. Currently, most medical services that patients and consumers receive are provided by many distinct organizations with limited opportunities for coordination, collaboration, and synergy.

Over the last decade, the U.S. healthcare industry has been active in responding to significant healthcare reforms and evolving and demanding market dynamics and forces. These reforms and dynamics range from the 2010 Patient Protection and Affordable Care Act (PPACA) to the Accountable Care Organization (ACO), focusing on promoting population health, the transition to value-based care, the rise of healthcare consumerism, and the increasing complexity and escalating cost structure in the clinical care setting. These significant forces are challenging many healthcare organizations to provide advanced, efficient, and consistent medical care coordination inside and outside their walls. To meet, manage, and sustain current and anticipated population’s healthcare needs, healthcare organizations are learning and benchmarking best clinical and business practices from other industries that have benefited tremendously from embracing the High Reliability Organization (HRO) model.
For all stakeholders involved in the delivery of healthcare (health systems, physicians, payers, investors, etc.) it is clear that this industry needs to commit additional resources and effort to redesign many of the critical clinical and business functions and processes. This redesign is required to catch up to other consumer-based industries that have achieved solid track records in implementing the high reliability organization model. The guiding principle for healthcare stakeholders indicates the HRO model is a mission critical for the industry aiming to deliver consistent and reliable clinical outcomes and sustainable business performance results.
The healthcare industry has never seen such a significant disruption of its clinical and business processes by embracing innovative technologies and clinical advances in its day-to-day operations. When health systems face challenges and opportunities, they not only must contend with new demanding incremental demographic shifts that profoundly modify and impact the population's health status, but also with rising healthcare consumerism and expectations.
This principle should be a shared vision and a common destiny for all healthcare organizations. FAU’s Executive Master of Health Administration (EMHA) program prepares graduates to become the next generation of leaders and managers this industry demands. Our graduates learn about the HRO model and its strategic and operational requirements and acquire the essential core competency professional skills that are necessary to transform the U.S. healthcare delivery system in the right direction. This dynamic learning experience ensures our graduates will leverage these skills to understand the undergoing significant structural changes in this industry and to manage its transformation.
Ultimately, the healthcare industry sets its strategic target to improve patient care outcomes and business performance results. FAU graduates are prepared and motivated to be our future healthcare leaders and change agents who are committed to build and support resilient organizations and communities.

Dr. Mountasser Kadrie is Adjunct Professor, FAU Executive Master of Health Administration program (EMHA). For more information about FAU’s Executive Master of Health Administration program, visit or call (561) 297-6000.

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