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HISTORY

The OR has undergone an evolution in its role within the hospital. The organized structure and daily management of the OR are markedly different today than it was 20 to 30 years ago.[2] In the past, ORs generated large profits.[3] The priority during this era was to maximize convenience for surgeons and attract a greater market share. Controlling costs was of low importance because it was assumed that any new investment in the OR would lead to increased revenue. During this period, revenue for the hospital was plentiful, so when new equipment or expanded ORs were desired, they were provided. Surgical procedures were scheduled at the desire of the surgeon, usually on a first-come-first-served basis. In this era, the authority for OR management was dispersed between hospital administrators and the OR nursing leaders. OR nurse managers were expected to manage all the complex activities in making the OR run.[4] Many of the supporting


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services (housekeeping, admitting, materials management, and laundry) had separate administrative reporting structures. The low procedure complexity of ORs allowed for these simplified support services. Usually, a hospital administrator, often with little direct OR experience, had authority for the OR as well as several other areas of the hospital. This hospital administrator left daily control of OR functions to the OR head nurse, who became the de facto leader of the unit. Physicians often had a limited role in directing OR function.

As surgical procedures became more complex and competition for available OR time increased, surgeons began to become dissatisfied with the hospital administrator's control of OR management. OR committees were formed to allow physicians an avenue to voice their thoughts to hospital leadership. The hospital and OR committees created rules and policies governing OR function. Dedicated rooms for complex procedures and increasing scheduling demands led to the development of guaranteed reserved OR times called "blocks." These blocks allow better predictability for surgeons to perform their procedures, as well as to allow the hospital to provide the necessary support for the cases. The authority for daily OR management still resided primarily with nursing.

As Diagnosis-Related Group (DRG) reimbursement and capitative payment for care became more common, ORs began to experience reduced revenue. Hospital administrators noted that ORs were very expensive to furnish and run. The overall hospital operating margin (profit) began to shrink, going from 6.3% in 1997 to 2.7% in 1999.[5] By 1999, 43% of not-for-profit hospitals actually lost money. Such losses forced hospital leaders to rethink how they ran their ORs. If the ORs consumed 9% to 10% of the institution's annual budget, these costs needed to be analyzed and controlled.[6] With the advent of general medical restructuring and primary care "gatekeepers," predictions of reduced demand for specialists and surgical services were made. Hospitals reduced inpatient beds and limited OR growth. The net effect of these changes was that frustration with OR function and management increased.

Hospitals set targets for performance, and regulatory organizations set quality measures for the OR. To complicate matters even more, the predictions of reduced surgical caseload volume proved to be untrue. Surgical demand began to increase faster than the OR infrastructure, OR nursing, and anesthesia services could match. Shortages of hospital beds, intensive care units (ICUs), and personnel to staff ORs have now led to increased pressure to manage ORs with maximum efficiency while at the same time controlling costs. The hospitals expected all these OR changes to occur simultaneously while maintaining high OR customer and patient satisfaction. Hospital administrators began to realize that they needed more direct physician leadership in these complex OR matters. In some hospitals, medical directors were appointed and more voice and authority were given to physicians in OR leadership roles. This physician leadership structure began in a few academic departments but has now expanded to many public and private organizations throughout the United States, Europe, and elsewhere. The focus on not only leadership structure but also management techniques that improve OR function has led to a organized approach to OR management as set forth in this chapter.

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