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Organizational costs can be grouped as process cost, cost of quality, and cost of poor quality. Providers should train managers in the theory and application of Lean-Six Sigma, including the seven categories of waste and how to remove them. Healthcare financial executives should work with managers in eliminating waste to improve service and reduce costs.
Hospitals have been slow to adopt quality measures from other industries but that is changing. And so will the role of the board.
The number of healthcare organizations that require targeted cost reduction due to state and federal budget shortfalls demands intense senior leader accountability. Leaders are discovering that traditional methods for curbing expenses have been largely exhausted, and they seek fresh approaches to meet their strategic imperatives. This study of more than 200… (More)
The speed with which process improvements are implemented can be critical to their success.