ABSTRACT

The demand and supply–based operating logic (DSO) is used as a conceptual lens to distinguish managerially similar parts of healthcare. The construct is tested by a thought experiment applying it to the central issues of healthcare: process improvement, patient choice and information asymmetry, health finance, integration, coordination, and the volume–variety dilemma. The DSO construct highlights that the predicament of healthcare can be segmented and problem types can be clarified. The most difficult management problems are associated with emergency (demand management), cure (explorative processes), and prevention (weak production function). For others, currently available operations management methods can be applied.