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Theory of constraints for publicly funded health systems

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  • Somayeh Sadat
  • Michael Carter
  • Brian Golden

Abstract

Originally developed in the context of publicly traded for-profit companies, theory of constraints (TOC) improves system performance through leveraging the constraint(s). While the theory seems to be a natural fit for resource-constrained publicly funded health systems, there is a lack of literature addressing the modifications required to adopt TOC and define the goal and performance measures. This paper develops a system dynamics representation of the classical TOC’s system-wide goal and performance measures for publicly traded for-profit companies, which forms the basis for developing a similar model for publicly funded health systems. The model is then expanded to include some of the factors that affect system performance, providing a framework to apply TOC’s process of ongoing improvement in publicly funded health systems. Future research is required to more accurately define the factors affecting system performance and populate the model with evidence-based estimates for various parameters in order to use the model to guide TOC’s process of ongoing improvement. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Somayeh Sadat & Michael Carter & Brian Golden, 2013. "Theory of constraints for publicly funded health systems," Health Care Management Science, Springer, vol. 16(1), pages 62-74, March.
    • Handle: RePEc:kap:hcarem:v:16:y:2013:i:1:p:62-74
    DOI: 10.1007/s10729-012-9208-9
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    References listed on IDEAS

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    1. A Mehrez & A Gafni, 1990. "Evaluating Health Related Quality-of-life: An Indifference Curve Interpretation for the Time Trade-off Technique," Centre for Health Economics and Policy Analysis Working Paper Series 13, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
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    6. Abraham Mehrez & Amiram Gafni, 1989. "Quality-adjusted Life Years, Utility Theory, and Healthy-years Equivalents," Medical Decision Making, , vol. 9(2), pages 142-149, June.
    7. Jos Schaefers & Jerome Colin & Riad Aggoune & Myriam Kucina, 2007. "A contribution to performance measurement in the healthcare industry: the industrial point of view," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 9(2), pages 226-239.
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    Cited by:

    1. Negar Darabi & Niyousha Hosseinichimeh, 2020. "System dynamics modeling in health and medicine: a systematic literature review," System Dynamics Review, System Dynamics Society, vol. 36(1), pages 29-73, January.

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