The strategy of casemix

Abstract

While the political debate rages over whether casemix brings economic benefitsfor Australian health care, managers are observing a pragmatic change to theirbusiness and some are using casemix to understand and manage their businessbetter. Casemix is a useful tool in this environment of increasing managementaccountability and process re-engineering.This article reviews casemix from a process innovation perspective; commentson its real use for strategic health care management; and suggests a simple matrixused by St John of God hospitals throughout Australia to implement and measureprogress towards quality casemix-managed hospitals. The management motivationfor this matrix was to promote hospital resourcing decisions supplemented bycasemix information.