Applying the Quality Loss Function in Healthcare

Applying the Quality Loss Function in Healthcare

Elizabeth Cudney (Missouri University of Science and Technology, USA) and Bonnie Paris (University of Missouri-Rolla, USA)
Copyright: © 2008 |Pages: 6
DOI: 10.4018/978-1-59904-889-5.ch014
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Using the quadratic loss function is one way to quantify a fundamental value in the provision of health care services: we must provide the best care and best service to every patient, every time. Sole reliance on specification limits leads to a focus on “acceptable” performance rather than “ideal” performance. This paper presents the application of the quadratic loss function to quantify improvement opportunities in the healthcare industry.

Key Terms in this Chapter

Goalpost Mentality: The thought that performance between targets is always and equally acceptable.

Tolerance: An acceptable level of imperfection in service received as defined by the customer.

Fragmented Information Sources: Separate sources of data and information that require significant?effort and skill?to combine in a meaningful way.

Hidden Costs: Nonobvious costs of providing or failing to provide care, including the value of lost patient and provider time.

Health Care Quality: Attributes of output of the health care process, including clinical outcomes, access to care, satisfaction with care, and cost of care.

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