The characteristics of the 58 participants in this study are shown in Appendix 2.
4.1. Weaknesses in the Structure of the Administration of Iranian Public Hospitals
Based on the analysis of the participants’ views about the weaknesses of the structure of the administration of Iranian public hospitals, nine main themes with 34 sub-themes were finally extracted (detailed information is given in
Table 1). The most important weaknesses that the participants stated included weakness in organizational structure (with six sub-themes), poor financial management and budgeting (with five sub-themes), weaknesses in the laws and regulations (with five sub-themes), financial issues (with four sub-themes), low transparency and lack of adequate supervision (with three sub-themes), centralized decision-making and management (with three sub-themes), political factors (with three sub-themes), poor managerial skills (with three sub-themes), and low patient and staff involvement (with two sub-themes). Most participants believed that the organizational structure of Iranian public hospitals had weaknesses such as mismatch between the structure and the current state of the hospital and market conditions leading to a point where hospitals cannot respond to vulnerable hospital needs.
| Main Theme | Sub-theme |
|---|
| Weaknesses | |
| Low transparency and lack of adequate supervision | Lack of transparency in terms of obtaining a job and the path to career advancement |
| Lack of monitoring the accountability and performance of managers |
| Lack of proper information about professional events |
| Centralized decision making and management | Centralized decision-making and management system and low decision-making speed |
| Lack of participation of hospitals in adopting macro-policies |
| Improper delegation |
| Weaknesses in-laws and regulations | Insufficient attention in drafting laws and regulations |
| The bureaucracy of hospital administrative processes |
| Separation of hospitals from the primary health care system |
| Legal problems of partnership with the private sector |
| Lack of integration in upstream documents |
| Political factors | Lack of management expertise |
| Influence of political considerations |
| Overlap of stewardship, financing, and service delivery functions |
| Financial Issues | Unfair payment to service providers |
| How to pay mandatory notification |
| How to buy service providers or FFS |
| Service tariff problems |
| Low patient and staff involvement | Lacked role of public participation in the management of the hospital |
| Low participation of process owners in policymaking and drafting laws and regulations |
| Poor financial management and budgeting | Lack of revenue management and hospital costs |
| Traditional and linear budgeting |
| Lack of resource management |
| High overhead costs |
| Lack of financial authority in senior hospital managers |
| Weakness in organizational structure | The mismatch between the structure and the current state of the hospital and market conditions |
| No independent structure |
| Lack of agility of the current structure |
| Reduced responsibility and accountability to society (low social responsibility) |
| Lack of competition and monopoly of services in public hospitals |
| Low commitment and motivation |
| Poor managerial skills | Inadequate distribution of manpower in general and specialized fields |
| Lack of strategic and long-term attitude |
| Lack of maintenance management of medical facilities and equipment |
| Strengths | |
| Proper management at the executive level of the organizational pyramid | The strict control of the expert body |
| Existence of indicators at the expert level |
| Strong infrastructure and Government support | Medical Equipment |
| Manpower |
| Developing and designing centralized performance appraisal indicators |
| Development of patient admission protocols in special wards |
| Standard physical space |
| Government financial support |
| Providing extensive services | The high volume of services |
| Admission of patients whom the private sector is reluctant to admit |
| Hospital referral system |
| Positive social functions | Supporting vulnerable groups |
| Reducing induced demand |
| Horizontal equity |
| Increase (positive response) of social functions in the hospital |
| Low cost of receiving services |
| Proposed solutions | |
| Requirements | Developing valid and reliable indicators for hospital heads |
| Creating revenue and expense centers |
| Activating hospital committees |
| Governmental ownership |
| Just in time support and logistics purchases |
| Multidisciplinary team approach |
| Monitoring programs through audits |
| Use of scientific and evidence-based assessment and control methods |
| Payment system | Reform of the tariff system |
| Use of financial control levers |
| Performance-based payment system |
| Use of DRGs system |
| More involving of people and non-governmental organizations in the management of hospitals | Public-private partnership (BOT contract, Outsourcing services) |
| Increasing people's participation |
| Use of patient rights advocacy teams |
| Delegation of authority | Delegating more authority to hospitals |
| Adequate supervision |
| Manpower management |
| Organizational structure of the hospital | The core of the hospital board |
| Organizational chart modification |
| Transparency of horizontal and vertical communications |
| Composition of the Board of Trustees |
| Proposed models | |
| Governmental ownership; Providing services by non-governmental scientific methods | Preservation of governmental ownership |
| Absolute lack of privatization |
| Providing services in the form of a primary health care system |
| Using the board of trustees model by observing the requirements of this model | Use of the board of trustees model |
| Use of the charity model | Using the hospital management model by the charity |
| Using the corporate model | Using the corporate model of hospital management |
During the interviews, participant number 6 stated that “...The current structure of the hospital administration is affiliated with the university ...”
Some of the participants expressed that there is no independent structure in Iranian public hospitals as a means for the structure to be highly closed so that hospital managers cannot have organized human manpower based on hospital priorities, hospital strategies, and market conditions to overcome probable obstacles.
Participant number 4 mentioned that “... The structure of these hospitals because they are closed, is highly dependent on the university ...”.
Most of them believed that Iranian public hospitals are not flexible for hospital managers to have full authority to change the structure in the hospital.
Participant number 31 and 10 said that “... Somehow this lazy structure cannot simply respond to the needs of society...”
Some mentioned that this structure reduced society's responsibility and accountability because this naturally has a monopoly of services, and there is no contestation in hospitals.
Participant number 9 said that “... Competition has no meaning and all people go to hospitals regardless of the quality of services provided to hospitals ...”.
Most alleged that all of the manpower in this setting has low commitment and motivation because hospital managers do not have any authority to motivate employees towards organizational goals.
Participant number 8 said that “.... Organizational affiliation in public hospitals has not been put into practice literally…”.
Participants’ opinions about inadequate financial management and budgeting included five sub-themes such as lack of revenue and cost management, traditional and linear budgeting, lack of resource management, high overhead costs, and lack of financial authority among senior hospital managers.
Many pointed out the traditional and line-based budgeting in hospitals and believed that if this problem is solved, we can claim that the main obstacle in financial management and budgeting has been removed in Iranian public hospital management.
Participant number 11 mentioned that “... The budget allocation system in these hospitals is wrong, and because it is wrong, we inject resources into hospitals through wrong methods ...”.
Some of them stated that in this structure, because of the nature of the government, the most important topics in financial issues that were emphasized by participants included the following: Unfair payment to service providers“... Inequity in payment to medical and non-medical staff and consequent lack of motivation of staff ...” (P 40), hospital mandatory payment disregarding hospital conditions “... Payments are discussed based on the notification system and not on a case-by-case basis ...” (P 46), Fee for Services (FFS) “... The method of purchasing services from providers in our centers is labor-intensive ...” (P 50), and service tariff problems in hospitals “... Tariffs for reasonable services are not comprehensive and complete ...” (P 42), “... Cost coverage according to the service tariff indicates that not all costs are covered by the operation of the hospital ...” (P 33). It is expressed that performing a corrective intervention payment system and addressing problems related to service tariffs in Iranian public hospitals is essential.
All of the participants corroborated that public hospitals in Iran have low transparency, especially in the process of choosing managers and professional development plans “...The manager does not have the same conditions for getting a job as a hospital director? ...” (P 47). Some said that this structure has lack of monitoring, unaccountability, and performance indicator for top-level hospital mangers “... In the department of senior managers of hospitals, there is no monitoring to assess their performance...” (P 28). “... We have no information in terms of administrative and employment process, discrimination, and justice ...” (P 2).
The main issue was that all of the participants believed that decision-making and management in Iranian public hospitals are very concentrated and managers do not have any authority over management; in other words, they should have permission from the top-level for all processes in hospital management.
Participant number 1 mentioned that “... Ultimately, hospitals do not allow managers to focus too much on decision-making and execution ....”. Participant number 8 said that “... We do not have many discussions, the MOHME is in charge of health, we do not agree with many decisions of the Ministry ....”. Participant number 7 stated that “... There is a mismatch between authority and responsibility ...”.
Also, participants mentioned that the core intervention to remove this problem is decentralization.
Political factors from participants’ views that affect public hospital management in Iran were categorized in three domains as lack of management expertise, the influence of political considerations, and overlap of stewardship, financing, and service delivery functions.
Nearly all of them stated that the role of political factors on hospital management is inevitable. During the interviews, participant number 16 said that “... Political changes have led to executive changes ...”. And the majority of them believed that hospital managers in Iranian public hospitals do not possess hospital management knowledge and most of them manage by trial and error. Participant number 24 stated that “... Managers trod paths unfamiliar to them...”. However, according to most of the participants’ opinions in this study, Iran has capable graduates in hospital management, who can be useful if there are used as hospital managers. Another issue that is underscored is an overlap of stewardship, financing, and service delivery functions. Most of them mentioned that these functions must be separated to reduce the negative political issues on hospital management. For example, participant number 52 said that “... Supervision and accreditation are done by the same institution that provides the service ...”.
Poor managerial skills is another subject that participants in this study mentioned, which means that nearly all hospital managers are physicians who do not have any managerial skills such as strategic planning, leadership, communication, long-term attitude, maintenance, and management of medical facilities and equipment, manpower management, etc. Participant number 3 stated that “... In this type of structure of hospitals, we have no defensive strategy at all in our strategic plan ...” (P 3).
Some asserted that the distribution of manpower in general and specialized fields is not adequate, and MOHME as the main policymaker should have a comprehensive plan to solve this problem. Participant number 14 mentioned that “... We have a shortage and density of forces in some places....”.
The last weakness that was regarded by the participants is low patient and staff involvement in Iranian public hospitals; it means that most of them agreed that this theme has been ignored in Iranian public hospitals, and all hospitals should have their plan to improve the patient and staff involvement in the hospital. Participant number 38 said that “... I cannot say that the people in the administration of the hospitals are involved in this structure ...”. Participant number 41 stated that “... Hospital staff have no role in the management of our hospital ...” (P 41). Most participants referred to this as a forgotten principle in hospitals.
4.2. The Strengths of the Structure of Iranian Public Hospitals
Ultimately, four main themes (proper management at the executive level of the organizational pyramid, strong infrastructure, government support, and the provision of extensive services and positive social functions) with 16 sub-themes were identified as strengths (See
Table 1 for more information). The first strength of this structure from participants’ points of view is proper management at the executive level of the organizational pyramid, which means that there is a sufficient expert body of manpower at the executive level, and most participants believed that, unlike senior managers, there are assessment indicators for middle and executive managers. In this way, participant number 18 mentioned that “... Expert body control is much better and more successful than the management body control ...”. Participant number 3 stated that “... Most of these indicators are strict ones available at the undergraduate level ...”.
The second one is strong infrastructure and government support that is categorized in the areas of medical equipment, manpower, development, and design of centralized performance appraisal indicators, development of patient admission protocols in special wards, standard physical space, and government financial support. Participants numbers 13, 19, 24, and 42 pointed out the following:
“... excellent and advanced medical equipment ...” (P 13)
“... enough manpower ...” (P 19)
“... In our work environment, the development of performance indicators has produced an excellent result ...” (P 24)
“... There are strengths in the source of government support ...” (P 42).
Participants unanimously agreed that Iranian public hospitals do not have recourse shortage, but the main problem is resource management. Participants stated that the third one is providing extensive services such as the high volume of services, admission of patients whom the private sector is reluctant to admit, and hospital referral system.
Participant number 20 mentioned that “... The public sector accepts patients whom the private sector is reluctant to admit because of its cost-effectiveness ...” (P 20). Participant number 34 stated that “... Since we have a referral system for providing services in this structure, but it responds to an acceptable level ...” (P 34).
Most of them mentioned that public hospitals in Iran have played an important role in providing such medical services to patients; as an instance, most of the emergency services are offered not by private but by public hospitals. Participant number 39 said that “... the number of patients admitted to this structure is higher than that in others sectors ...” (P 39).
The last strength that the participants mentioned as the fourth is a positive social function where public hospitals can play a huge role. Most of the participants believed that factors like supporting vulnerable groups (elderly people, pregnant women, patients with financial problems, etc.), reducing induced demand, extending horizontal equity, increasing the positive response of social functions in the hospital, and lowering the cost of receiving services can be expressed in this section. During the interviews, participants numbers 40, 42, 46, 51, and 31 mentioned that “... The strength of this structure is a government control and the provision of services to the poor and needy ...” (P 40). “... Perhaps induced demand has occurred less in government systems ...” (P 42). “.... Offer the same services to all people ...” (P 46). “... This structure responds positively to social functions ...” (P 51). “... The low cost of receiving services for patients is workable ...” (P 31).
4.3. Proposed Solutions to the Structure of the Administration of Iranian Public Hospitals
The strategies identified by the interviewees were classified into five main themes and 22 sub-themes (More details are listed in
Table 1).
As the first solution, almost all of the participants mentioned items as requirements for corrective intervention, including: Developing valid and reliable indicators for hospital heads “... We ought to have an index for selecting, retaining, and dismissing hospital managers ...” (P 19); Creating revenue and expense centers “... Establish revenue-costs centers in each sector that can be calculated weekly...” (P 55); Activating hospital committees “... It is important that hospital committees be as active as hospital indicators ...” (P 44); Ease governmental ownership “... I believe in maintaining public ownership and using a combination of methods to manage ...” (P 18); Just in time support and logistic purchases “... Hospital purchases in the field of logistics and support (consumption) just in time and distribution at the hospital by the stores of the contracting party ...” (P 58); Extending a multidisciplinary team approach “... First, be a team and be managed as a team ...” (P 14); Monitoring programs through audits “... Be sure to use internal and external audit programs for six or twelve months ...” (P 22); And using scientific and evidence-based assessment and control methods “... The assessment and control system is a technical matter; it does not require an interview, and there are various methods that should be decided and implemented ...” (P 37). On the other hand, they emphasized that these are essential to perform a reform in Iranian public hospitals.
The second solution stated by the participants concerned payment systems in hospitals. These systems in Iranian public hospitals do not seem to be proper enough and may cause employees’ apathy. Participants tell us that such a solution can be effective to the hospital payment system and can reform the tariff system “... Create a revolution in the hospital tariff system close to the actual service tariff or a combination of related sets ...” (P 31); Use of financial control levers “... In other words, hospital administration should be private, but a series of controls or control levers should be taken out of the state of the enterprise ...” (P 26); A performance-based payment system “... Budget management should depend on the performance of the hospital, that is, everyone should have a share in the hospital as much as their activity and performance ...” (P 29); And the use of Diagnosis Related Groups (DRGs) systems. Nearly all of them believed that the tariff system in Iranian public hospitals has a problem and they are not reliable; for better results, hospitals need to move to DRGs. Participant number 37 stated that “.... We use the relative service tariff system, but in other countries, they use the DRGs system ....”.
The third solution that was emphasized by the participants included the more involvement of people and NGOs in the management of hospitals by Public-Private Partnership (PPP) (BOT contract, Outsourcing services), increase in people's participation, and use of patient rights advocacy teams. Some of them told us that they could not use the potential of the private sector at common service delivery such as laundry, nutrition, etc. For example, participant number 6 mentioned that “... In my opinion, it can be appropriate if outsourced services are done with excellent supervision ...”. Most of them stated that the establishment of patient rights advocacy teams plays a vital role to increase patient involvement in Iranian public hospitals. Participant number 14 stated that “... Organizing and forming an NGO whose sole purpose is to support the rights of patients and to have a representative of this non-governmental organization in the composition of the board of trustees of the hospital ...”. Also, participant number 10 expressed that “... Public participation in the management of public hospitals can be used to participate in the selection of health system managers such as in the United Kingdom, which is done by voting at the city level ...”.
The fourth solution stated by participants was a delegation of authority to Iranian public hospitals. Most participants considered such issues as the delegation of more authority to hospitals; for example, participant number 37 mentioned that “... The nine dimensions of the Parker-Harding model should be given to hospitals ... ”; Adequate supervision “... The board of trustees and the company can be held accountable, it can even be privatized, provided that adequate oversight responds ...” (P 35); And manpower management necessary to increase the delegation of authority to hospitals “... The maintenance of human resources should depend on his/her performance in the organization, not permanently...” (P 41). Nearly all participants had a consensus that the delegation of authority is not in a good condition and the necessary authority should be given to the managers of the hospitals in this case. Some of them believed that hospital managers do not have any authority over human resource management.
In the end, the fifth solution mentioned by participants was doing corrective interventions in the organizational structure of the hospitals such as the core of the hospital board “... As a general principle, the providers, recipients, and buyers of services of these three main groups should be present in the management component of the hospital ...” (P 42); Organizational chart modification "... The organization of the hospital should be reformed. My point is that the board of directors of the hospital can also comment on the organization...” (P 54); Transparency of horizontal and vertical communications “... The administrative hierarchy also needs to be transparent ...” (P 55); And the composition of the Board of Trustees “... The composition of the board of directors should also be a combination of people, including management experts, senior managers, trustees, and representatives of the people by collective wisdom ...” (P 56). According to most of the participants, hospital boards and a multidisciplinary team could be an effective hospital management system.