Health systems management (HSM) is important to deliver quality healthcare services to all populations. HSM involves a multifaceted approach that combines health policies, resources and strategies to enhance the efficiency and effectiveness of healthcare delivery. Health systems management seeks to address challenges, improve outcomes and ultimately enhance the overall health and well-being of communities by encouraging stakeholder collaboration, utilizing technology, allocating financial resources and prioritizing patient care.
Effective management plays a significant role in navigating healthcare systems. Graduates of the Arkansas State University (A-State) online Master of Business Administration (MBA) with a Concentration in Healthcare Management program are prepared to excel in the HSM space and weather the changes and trends of the modern landscape
Defining Health Systems
The World Health Organization (WHO) defines health systems as “all the organizations, institutions, and people whose primary purpose is to improve health.” The Agency for Healthcare Research and Quality (AHRQ) states that the definition of health systems is ever-evolving, highlighting each Center of Excellence’s contributions to health improvement efforts.
For example, according to AHRQ, the RAND Center of Excellence defines a health system as two or more healthcare organizations that have shared ownership or have a contract for payment and services. The health system must also contain at least one physician group and one acute care hospital.
Additionally, per AHRQ, the National Bureau of Economic Research (NBER) states that a health system is a group of jointly owned or managed healthcare organizations. In this system, there is a requirement to include at least one general acute care hospital, 10 primary care physicians and a total of 50 physicians within a single hospital referral region.
Defining HSMs provides a clear understanding of scope, objectives and practices. By establishing a definition, professionals can set measurable goals and develop appropriate strategies, making it easier to evaluate performance and recognize areas for improvement. That foundation empowers decision-makers to implement evidence-based practices and policies that lead to sustainable improvements in healthcare quality, accessibility and affordability
Health Systems Framework
The WHO identifies six building blocks of health systems that are essential for the delivery of health services, with many current practices stemming from responses to the COVID-19 pandemic:
- Service delivery: providing health services, such as preventive, curative and rehabilitative care, to individuals and communities, including triage systems, telemedicine capabilities and resource reallocation in emergencies
- Health workforce: includes those who deliver health services, such as doctors, nurses, community health workers, pharmacists and other support staff
- Health information systems: the methods and tools used to gather, analyze and disseminate health information, including health records, disease surveillance data and health research
- Access to essential medicines: ensuring people have prompt access to safe, effective and affordable medicines
- Financing: the means by which healthcare is financed, including how professionals collect and allocate funds
- Leadership and governance: the oversight of health systems and the policies, regulations and institutions that guide health sector activities
WHO admits that the framework is not without fault, as it does not take actions that influence peoples’ behaviors or address social or economic determinants of health. However, these six components contribute to the overall performance of health systems by delivering quality health services to populations by identifying, measuring and monitoring progress.
Current Healthcare Industry Trend
Professionals in the HSM field must anticipate and manage trends in the space. Rapid changes in data, technology, patient needs and healthcare access make the landscape a complex and fluid one.
PWC notes several trends in health systems management. As patient affordability is currently an issue, there is an emphasis on the need for healthcare organizations to be efficient in cost management and operational functions to make healthcare more affordable. These efforts include exploring value-based care models, leveraging technology to reduce administrative costs and optimizing supply chain and procurement processes
There is also a shift towards more flexible healthcare spaces, suggesting that traditional hospital settings are evolving to include more outpatient and community-based care options. This trend stems from consumer demand for convenient and more accessible healthcare services.
Finally, PWC notes that collaboration among healthcare providers, technology firms, retail companies and community organizations is necessary in care delivery, patient engagement and population health management. These partnerships draw on each sector’s strengths to create holistic solutions for healthcare challenges.
Preparing for the Role of Health Systems Manager
A-State’s online MBA – Healthcare Management program includes specialized courses like Health Care Issues and Policy that focus on industry trends and prepare students for HSM roles. Students learn about healthcare delivery systems, current trends, regulatory issues, quality improvement and strategic management in healthcare to prepare them for exciting careers that support health systems.
Learn more about A-State’s online MBA with a Concentration in Healthcare Management program.