HA515 Discussion Unit 8

Explain in not less than 200 words the importance of measurement and developing criteria for efficiency, effectiveness, performance, efficacy, and quality in health organizations. Why is this important to health leader evaluation? 

In two separate paragraph with no less than 75 words give your personal opinion to  Kerri Collins and  Danielle Dials

 Kerri Collins

Developing a criterion for measuring efficiency, effectiveness, performance, efficacy, and quality maintains a level of standards.  Accountability for performance and quality has become more and more important.  Performance measurement is usually measured by collecting data to demonstrate how processes are working.  This information is used in decision-making in the organization.  Performance measurement can show a healthcare organization what is really happening.  Other ways performance measures help in an organization is by establishing a baseline, identifying changes that need to be made, allowing comparisons, and monitor the success or failures of the changes that were made.  The goals and mission of the organization should be at the center of all performance measures.  (Performance Management and Measurement, 2011)

Efficacy and effectiveness are also important to healthcare organizations.  Efficiency has to do with getting a job done the best way possible without sacrificing quality.  Efficacy has to do with the ability to produce a desired result.  A manager must balance providing good quality care with productivity and effectiveness.  Sometimes this is difficult, and employees may feel as if they are being asked to do more and more with less and less.  Leaders must balance this to save energy, time, and money without compromising quality care.  Most processes can be improved upon and need to be looked at on a regular basis.  Most healthcare organizations will work to promote and improve quality through performance management.  Good leaders will understand this is an ongoing task. (Gerald R. Ledlow, James H. Stephens, 2018)


Gerald R. Ledlow, James H. Stephens. (2018). Leadership for Health Professionals. Burlington: Jones & Bartlett Learning.

Performance Management and Measurement. (2011, April). Retrieved from U. S. Department and Health and Human Services: https://www.hrsa.gov/sites/default/files/quality/toolbox/508pdfs/performancemanagementandmeasurement.pdf

 Danielle Dials

Efficiency, effectiveness, efficacy, performance and productivity, benchmarking, optimization, and quality have become growing trends in the healthcare industry. As hospitals and service providers are tasked with reducing cost and improving quality, it is imperative that leaders maximize their resources and improve coordination along the continuum of care. Our text book uses supply chain management as an example of best practices for supply chain management. In the 1990’s, Mercy Health identified a barrier to success in their supply chain management process in that the system had fragmented and duplicative information technology (IT) materials management software solutions. This essentially decentralized supply chain management and made it difficult for the organization to be efficient or initiate cost savings at the enterprise level (Ledlow & Stephens, 2018).

Another great example would be a Director of OR who aims to optimize OR utilization, effectively add days to the OR calendar, and essentially improve financial performance of the surgical suites. One metric widely used by leaders for this purpose would be the OR utilization rate. However, this metric alone may not be enough. According to Brian Watha and Michael Besedick, a part of Surgical Directions Consulting, the OR utilization rate can be misleading and must be paired with block usage. In one instance, they found that one physician who had a high utilization rate was not even using one of his three OR blocks. Another physician looking to grow his or her practice could have used the unutilized block. When the blocks were reassigned, the hospital’s adjusted-utilization rate improved from 40 to 89 percent. “People aren’t going to change unless you measure it” (Oliver, 2020).


Ledlow, G. R., & Stephens, J. H. (2018). Leadership for health professionals: theory, skills, and applications. Burlington, MA: Jones & Bartlett Learning.

Oliver, E. (2020, February 21). The gift of time – How to optimize utilization and add days to the OR calendar. Retrieved February 27, 2020, from com/quality/the-gift-of-time-how-to-optimize-utilization-and-add-days-to-the-or-calendar.html”>https://www.beckershospitalreview.com/quality/the-gift-of-time-how-to-optimize-utilization-and-add-days-to-the-or-calendar.html

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