

An extract from the paper presented at the Conference “The Profession of
the Medical Manager and Company Management” organised by the Milan Province
Association of Physicians Surgeons and Odontologists - 2002. In
the past, sensation was caused by legal proceedings following which a Head
of Department in a large hospital had been found guilty for having ignored
and neglected his functions “in vigilando and in diligendo” concerning subordinate
staff, and had been sentenced to reimburse damages claimed by the nurse; neither
the hospital nor the Consultant’s personal insurance companies had been involved,
since the professional tort liability policy did not include possible damage
resulting from the Consultant’s position as employer; indeed facts lied outside
medical activity in the strict sense of the word.
The episode, which incidentally the medical category did not seem to attach
much importance to at the time, was shelved for several years; however, recently,
following the transformation of the hospital medical practitioner’s position
from that of an ordinary professional to that of a medical manager, insurance
companies have started providing for risk coverage extensions, to include,
in addition to damage relating to the medical activity, also risks associated
with the new and atypical managerial position of hospital medical practitioners
as employers; however, these extensions certainly do not provide for the risks
related to this new position from an administration and management point of
view with regards to the attainment of the proposed goals in terms of figures
rather than in terms of health.
Recent reformations, concerning both state and healthcare employees, have
led many people to claim that in hospitals viewed as enterprises, as health
manufacturing facilities, the position of medical practitioners should follow
the same pattern as that of managers operating in the private sector.
But to what extent is a medical manager really a manager with responsibilities
and honour rather than having responsibilities and no powers? Up to what extent
can we allow the healthcare “aziendalizzazione” process, the process whereby
emphasis is placed on healthcare business-like management, to lapse into the
standards regulating productive activities?
Do managers and medical practitioners tackle decision-making processes in
the same manner? Let us not forget that, whilst a doctor’s job focuses on
people, a manger’s job focuses on the organisation.
The doctor’s interest is first of all concerned with the individual patient,
whereas the managers’ goal is to maximise corporate income. If, as it appears,
a difference exists, how can this be overcome? The outcome of healthcare activities
is not a sellable or visible product, but rather a form of welfare: individual
health, which cannot be appreciated by the general public but only by a single
individual, even though it is in the interest of the general public, is an
asset protected by the constitution.

A healthcare enterprise is an atypical industry, where an extremely high number
of highly professional people work. Hospitals no longer are holy places designed
for dying or poor people, but health manufacturing facilities; today healthcare
distinguishes itself for its technological complexity, for constantly evolving
environments, by ever more sophisticated specialisations, with the resulting
need to design organised facilities, which are rich from a coordination point
of view and integrated by reliable and flexible management tools. Besides,
the age of plentiful resources is now over, even though the demand for goods
and services is increasing, and hence cuts, restrictions and waste control
procedures are required; in short, expense rationalisation aimed at ensuring
that a lower expense increase may result in an improvement in the quality
and quantity of services. Doctors had for a long time been kept away from
economical responsibilities, whereas they are now requested to report in terms
of results and resource employment; at the same time and in many respects
they seem to have to bear the load of administration staff who, whilst requesting
on one side cuts even in the number of health workers, on the other hand multiply
to check on consumptions, accounts and the performance of medical managers,
who are sometimes obliged to carry out tasks whose competence may be found
to be questionable. f
Medical mangers are to make diagnoses, select therapies, organise ward staff,
speak to the patients, but also manage the budget, send out purchase orders
for material required over the next 12 months, and prove with accountant-like
accuracy full income and expenditure precision.
Once, the head of a hospital department was involved with medicine, research,
therapies, technology and examination of tests. Today, he has to be good at
reckoning, and, above all, must possess the same knowledge an industrial manager
has, although he has twice his responsibilities, since he also has to treat
his patients.
The diagnostic-therapeutic medical act is now viewed as a process aimed at
the production of the health asset, which cannot be viewed out of context,
but must, on the other hand, be integrated with variables such as technology,
staff, operating-facility spaces and consumption materials.
But to what extent is this possible without impacting the health asset? Who
is supposed to hold the administrative sway? Why should medical practitioners,
who are supposed to cure the sick, enslave part of their professionalism to
handle administrative tasks? Would it not be more rational to appoint specific
figures who, by closely cooperating with medical staff, and discussing their
demands, may erect the administrative castle? Medical managers are to act
according to a logic centring on objectives, with precise responsibilities
aimed at their attainment through an efficient use of the resources available,
with an inadequate training, and with a mentality, or rather an unfelt background
approach which has been imposed on them.
But to what extent a hospital medical practitioner, with the manager’s medal,
is really a manager? In the industrial field, a manager is a worker who covers
within the company a position involving a high degree of professionalism,
autonomy and decision-making power, and carries out his functions with the
purpose of promoting, coordinating and handling the attainment of the company’s
objectives. All managers are responsible for the results of the activity carried
out by the offices they are in charge of and for the implementation of the
programmes they are entrusted with.
This involves for doctors further responsibilities in addition to the traditional
responsibilities associated with their activity:
· responsibility for the results of financial, technical and administration
management;
· responsibility for implementing the programmes according to pre-set, and
often imposed, objectives.
Of course, these additional responsibilities are adequately remunerated, but
the crucial question is: what real powers does a medical manager have when
he is basically supposed to struggle to make ends meet with limited resources,
insufficient staff, inadequate equipment and veiled management command?
To what extent would it not be more rational to have a clear separation of
the goal-related processes and responsibilities from the responsibilities
for the attainment of such goals? In other words, the administration policy
bodies should not interfere with the implementation of working activities,
by distracting professional skills and qualities from the purposes aimed at
protecting the health of patients (now described as customers), which today
have to be handled by qualified staff displaying specific managerial professionalism.
In the past, hospital medical staff had real management autonomy, against
which the bureaucratic machine and policy had little power.
Choices where made according to professional medicals standards and could
not be questioned by bureaucrats. The medical practitioner was autonomously
in charge of the medical role. Now the old organisation structure has been
wiped out and the hierarchic pyramid has been disjointed. So administration
staff can impact and impose limitations on choices without having to bear
direct responsibilities. Medical practitioners are therefore forced to undertake
additional burdens and responsibilities.
Civil, administrative, penal and accounting liability remain unchanged, but
managerial liabilities are also added: together with the assignment of managerial
functions, doctors are subject to losing their functions in the event of ascertained
managerial liability. In view of this unified role, the previously existing
hierarchic managerial articulation proves superseded, as well as the principle
providing for the superiority of the manager in charge of a higher-level office
versus the manager in charge of a lower-level office. As a result of this,
the Manager of an Operating Unit has no power to inflict censures on other
Managers.
However, the manager is subject to managerial liability and it is the Evaluation
Nucleus that has to conduct performance evaluations according to specific
procedures: the performance appraisal may be conducted on an annual or triennial
basis, or upon assignment completion and a negative evaluation may result
in loss of result-related remuneration, loss of assignment according to certain
modalities, or exclusion from the award of further managerial assignments
corresponding to the revoked one for a period of at least two years.
But the most disturbing thing is that the performance appraisal chiefly focuses
on the attainment of the cost-reduction/income increase financial results,
which cannot really be reconciled with effective healthcare, and does not
appear to grant priority to whether professional performance has been able
to meet the actual needs of the patients: effectiveness, quality and promptness
of the requested service. In performance appraisals, the achievement of financial
objectives is privileged to the detriment of healthcare, quality and strategic
performance.
Cost control should not result in a reduction in quality level, which should
be monitored as a matter of priority and matched with an availability of resources.
Careful monitoring activity should focus on eliminating waste, inefficiencies
and delays. Healthcare has to bear significant costs, but how much money is
actually spent on healthcare and how much is, on the other hand, wasted on
the parasitology institution which feeds on health? Citizens are entitled
to health protection, but it looks as if many think that it is the citizens’
duty to fall ill.
And now, before closing, an advice for my colleagues:
· Before accepting a management function, check on the resources available
and on the practical chances of attaining your goals. And I would also like
to ask the whole medical category:
· To claim our right to our role and avoid becoming the scapegoat for situations
that were not created by us. And a statement of fact: · Hospital medical practitioners,
now, are not only responsible for treatments, but also for the savings and
for the reorganisations imposed by others.
ENOUGH WITH FRONT-LINE DOCTORS SENT TO CERTAIN DEFEAT!!! Administration should
state clearly what resources are available and the doctors will in turn inform
the citizens as to what level of Healthcare can be guaranteed.



MANAGEMENT TRAINING
1 Organisation and management of healthcare services
2 Funding and balance sheets
3 Human resources management
4 Instrumental resources management
5 Work organisation
6 Marketing and quality
MANAGEMENT CONTROL Through comparative evaluation of costs, income,
goal achievement, correct and cost–effective management of resources, administrative
impartiality and proper management, by gathering reliable data and information,
as well as practical knowledge.
HUMAN RESOURCES
MANAGEMENT 1 Work organisation and workloads
2 Assignments and delegations
3 Function rotation
4 Operating enrichment
5 Training and refresher courses 6 Open attitude towards staff
INSTRUMENTAL RESOURCES
1 Purchase of valid and necessary equipment
2 Purchase of innovatory equipment as it compares to cost/benefit
3 Employment of equipment before it becomes obsolete
MARKETING AND QUALITY
1 How many customers are there?
2 Who are they? 3 How often do they access the facility?
4 Where do they come from?
5 Which services do they request? 6 Which service is supplied?
7 Popularity rating control
8 Quality control
PURPOSES OF MANAGEMENT
CONTROL
1 Cost control by single unit
2 Profitability control
3 Cost control of non-productive activities
4 Fund flow control and planning
5 Control of inventory turnover 6 Optimisation of product and service supply
7 Assessment of company activities which are not strictly bound by economic
phenomena