Efficiency in Health Service Delivery: Improving Outcomes and Operational Profitability in Colombian IPS
Author(s)
JUAN C. FERNANDEZ MERCADO, MBA, MSc, PhD, MD1, Nelson Alvis-Guzman, MPH, PhD, MD2.
1UNIVERSIDAD DE CARTAGENA, Cartagena, Colombia, 2Universidad de Cartagena - ALZAK Foundation, Cartagena, Colombia.
1UNIVERSIDAD DE CARTAGENA, Cartagena, Colombia, 2Universidad de Cartagena - ALZAK Foundation, Cartagena, Colombia.
OBJECTIVES: To evaluate how efficiency in health service delivery contributes to improved clinical outcomes and increased operational profitability in Health Provider Institutions (IPS) in Colombia. The study focuses on identifying efficiency drivers—process optimization, resource use, and cost control—and their impact on sustainability and patient-centered care.
METHODS: A multi-site observational study was conducted in 14 IPS across three Colombian departments. Process audits, cost-effectiveness indicators, and key performance metrics (KPM) were collected over 18 months (2022-2023). Structured interviews with IPS managers (n=20) provided qualitative data on managerial strategies. Data envelopment analysis (DEA) was used to assess technical efficiency, while financial ratios and net operating margins were analyzed to measure profitability improvements.
RESULTS: Efficient IPS demonstrated 25-40% higher operational margins than their less efficient counterparts. Key strategies included reduction of duplicated tests, digitization of care workflows, optimization of human resource allocation, and standardization of clinical protocols. Technically efficient IPS (DEA score > 0.85) showed significantly better patient outcomes, including lower readmission rates (-18%), higher chronic disease control adherence (+22%), and shorter average hospital stays (-1.7 days). Integration of service lines (e.g., primary care with diagnostics and pharmacy) contributed to smoother patient flow and reduced idle resource time.
CONCLUSIONS: Efficiency in service delivery is not only a financial imperative but also a clinical strategy. IPS that invest in process innovation, digital transformation, and integrated care models achieve better health outcomes and higher profitability. Promoting efficiency should be a policy priority to ensure sustainability and equity in Colombia’s health system. Implementation of cost-tracking systems, lean management principles, and value-based care models can help IPS balance mission-driven service with economic performance.
METHODS: A multi-site observational study was conducted in 14 IPS across three Colombian departments. Process audits, cost-effectiveness indicators, and key performance metrics (KPM) were collected over 18 months (2022-2023). Structured interviews with IPS managers (n=20) provided qualitative data on managerial strategies. Data envelopment analysis (DEA) was used to assess technical efficiency, while financial ratios and net operating margins were analyzed to measure profitability improvements.
RESULTS: Efficient IPS demonstrated 25-40% higher operational margins than their less efficient counterparts. Key strategies included reduction of duplicated tests, digitization of care workflows, optimization of human resource allocation, and standardization of clinical protocols. Technically efficient IPS (DEA score > 0.85) showed significantly better patient outcomes, including lower readmission rates (-18%), higher chronic disease control adherence (+22%), and shorter average hospital stays (-1.7 days). Integration of service lines (e.g., primary care with diagnostics and pharmacy) contributed to smoother patient flow and reduced idle resource time.
CONCLUSIONS: Efficiency in service delivery is not only a financial imperative but also a clinical strategy. IPS that invest in process innovation, digital transformation, and integrated care models achieve better health outcomes and higher profitability. Promoting efficiency should be a policy priority to ensure sustainability and equity in Colombia’s health system. Implementation of cost-tracking systems, lean management principles, and value-based care models can help IPS balance mission-driven service with economic performance.
Conference/Value in Health Info
2025-11, ISPOR Europe 2025, Glasgow, Scotland
Value in Health, Volume 28, Issue S2
Code
OP6
Topic
Economic Evaluation, Health Service Delivery & Process of Care, Organizational Practices
Topic Subcategory
Academic & Educational
Disease
No Additional Disease & Conditions/Specialized Treatment Areas