Study On Application Of Value Chain Management In TCM Hospitals

The theory of the value chain management was put forward by Michael Porter, a professor in Harvard Business School in 1985. The theory meets the demand of management development, represents the value-added purpose of business management, and is considered the evolving trend of the history of management thoughts. It is mainly applied in the study of competitive advantage in businesses, focuses on how to seek sources of such advantage in value chains, so as to obtain the competitive strategy of cost and product differentiation or of target concentration.As in-depth development has been made in the reform of medical care system, the medical market is further opened up and becomes more furious. As the main body of the medical care system, the public hospitals face much pressure in terms of the reform, such as the pressure from national policy which separates the operation of hospitals from management, the administrative units from institutions, the treatment from prescription, and so on, as well as the pressure from the inner hospitals which are required to adopt new management theory to guide their own medical service due to the traditional theory not catching up with the development of modern medical industry. Thus, this essay, taking the First Affiliated Hospital of Guangzhou University of Chinese Medicine for example, comes up with the study on application of value chain management in public hospitalsThe main part of this essay includes the followings:Overviews of the theory of the value chain management, the theory of humanistic concern of medicine and the theory of business strategic managementThis essay analyzes the current situation of relevant activities and value chain in the First Affiliated Hospital of Guangzhou University of Chinese Medicine and according to the estimates of such analysis, the following issues are found: Less attention paid to the medical service based on humanismLess attention paid to the fostering of management personnelNo contacts made between the hospital and communist medical institutionsAccording to these issues, the suggestion, as follows, is made in this essay to improve the value activities and to optimize the value chain in this hospital.Richen the contents of medical service based on humanism, such as providing humanist medical environment, strengthening the training of humanistic quality of doctors and nurses, and so on.Emphasize the cultivation of management personnel, such as establishing the occupational concept of hospital management personnel, improving the incentive system, carrying out interest-driven policy, and so on.Forge relations with the communist medical institutions, such as entering into Partnership Assistance Agreements, choosing and sending regularly exports to conduct treatments in the institutions, and so on.It is believed that the research in this essay will serve a reference purpose as far as the value chain management is applied in public hospitals.