“The problem we have today is that economic policy is often prescribed by people who, despite holding advanced degrees in economics, possess no real understanding of how our monetary system works.” –Stephanie Kelton, Phd-Economics
Stephanie Kelton realized that most economic advisors in Congress do not understand how the US monetary system works. –most erroneously believe policy choices are limited by cost, thereby crippling crucial improvements.
Dr Kelton wrote a book, ‘Modern Monetary Theory‘, to explain MMT basics so that Congress would not be implementing inefficient and harmful strategies. The concepts are simple, and it gave Congress and its designees a blueprint to clarify their goals, develop better policies, and understand the appropriate feedbacks to focus its power on decisions and activities. The learning process may be very slow due to the slow nature of government. Unfortunately there’s no way to speed it up for Congressmen.
Modern Monetary Theory is an expression of concepts that are expanded in Constraint Theory (TOC -Theory of Constraints). Group Interactivity Graphs (GIGs) are a family of graphical expressions of TOC concepts that have been applied to healthcare for over 30 years in some facilities. MMT does not crossover to private healthcare, but GIGs do.
Every facility will have differently weighted variables influencing their final net profit and how they share total profit with others (docs, labs, insurers and plans, etc.) involved. The strategic and tactical choices of managerial accounting method, capacity utilization, and constraints are important for a competitive cost for any patient. Detailed implementation at the clinical hands-on level are major drivers.
Fortunately, GIGs can be immediately implemented (preferably in the OR) while all clinical personnel –in an apprenticeship like fashion– quickly learn the basic concepts and adapt them to their own domain knowledge daily during actual use. They will help coordinate activity and increase capacity utilization and optimize idle time by dynamically pulling and integrating information from multiple participants’ local knowledge for increased coordination and productivity –a healthcare scrum.
As these concepts and techniques are developed, they will organically grow and can be transferred to other departments creating iterative improvements on a facility wide basis ––clarifying, optimizing, and coordinating throughput choices from the ground level to the C-suite.
–– Do you care if Apple computers shows you the detailed costs of every component and contract for creating an iPad? You want quality (verified by customer reviews and tech journals) at an openly guaranteed cost. … Or, if you trust the government to monitor and enforce healthcare quality, lobby for universal healthcare so that you can spend more time at the beach, hiking, or partying with friends instead of researching your options.
managerial accounting systems concept diagram: https://lnkd.in/evEdf-A.