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Making the case for Lean Six Sigma in the healthcare sector

Mon, Jun 07, 2021 Vijaya Sunder M

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The Lean healthcare systems worldwide witnessed a significant evolution in the past two decades by transforming the processes and the behaviors within the healthcare firms. For example, Mayo Clinic in the USA implemented Lean in the early 2000s and achieved higher customer satisfaction among the cancer patients in their chemotherapy department.

Another such example is the National Health Service in the UK, where Lean deployment has improved hospital performance and delivered significant cost savings.

Even in developing economies such as India, Lean implementations have transformed both clinical and non-clinical processes among the hospitals. For example, in 2019, Fortis hospital, India’s second-largest hospital chain, declared that it cut costs by 20 per cent by embarking on Lean deployment.

In an interview with an executive director of the Apollo Hospitals Group, it was mentioned that they have been practicing Lean in their work processes to improve both efficiency and effectiveness.

While Lean implementation in the healthcare sector has provided some success, it had its share of drawbacks.

First, most of the Lean works in healthcare links to the traditional Toyota Production System and have not included the recent developments in Lean.

Second, implementing Lean in hospitals has been a daunting task in many countries, as Lean does not demand a data-driven approach.

Third, several studies emphasized that the leading cause for poor patient care in hospitals is the incorrect selection of Lean projects based on hospital management’s intuition.

Further, in many organizations, Lean has been perceived as an ad-hoc activity without considering its systemic implications. While the Lean literature endorsed several field-based tools like value stream mapping and visual management, it missed recognizing other important continuous improvement (CI) tools like process mapping, control charts, root-cause-analysis, etc.

Importantly, Lean does not address process variation related issues. Finally, the criticism that Lean lacks a project management framework to execute projects has been a concern among practitioners.

Alongside these, the healthcare sector’s inherent challenges like unevenness in healthcare operations, measurement system and quantification challenges, demarking healthcare as a market, defining patient as a customer, have been vague and, in fact, majorly unaddressed. 

With the recent development of Lean Six Sigma, a hybrid method that combines the rapidness of Lean and Six Sigma’s robustness, most of these problems get addressed.

Our research and practice of applying Lean Six Sigma in various healthcare contexts, including out-patient departments, mobile hospitals, pharmacies, healthcare insurance, diagnostic labs, intensive care, and in-patient admits, have convincingly endorsed Lean Six Sigma’s fitness for providing high-quality and low-cost healthcare services.

While Lean Six Sigma was built on Six Sigma’s original Define-Measure-Analyse-Improve-Control (DMAIC), and Define-Measure-Analyse-Design-Verify (DMADV) roadmaps, it is a data-driven, process-oriented continuous improvement approach that focuses on identifying and eliminating process defects, variation, and non-value-adding time to improve healthcare service efficiency and effectiveness.

Simultaneously, it helps improve process flow, utilization, flexibility, and service capability towards delivering greater value to patients and other healthcare beneficiaries.

There is an increasing interest in Lean Six Sigma by healthcare practitioners. While it offers both process and data lenses to examine problems towards a resolution roadmap, practitioners endorse it to be easy to learn and effective when applied.

We had opportunities to apply Lean Six Sigma in Indian hospitals. For example, a multi-specialty hospital in India that we deployed Lean Six Sigma suffered from a low patient satisfaction rate of about 78 per cent in the cardiology department.

The turnaround time (an average of 315 minutes, with a standard deviation of 24 minutes) was reported as a major contributor to patient dissatisfaction and identified as an opportunity for process improvement by the department’s management. Data analysis revealed a poor process capability to deliver services within the set objective of 210 minutes.

By applying the Lean Six Sigma toolkit, we were able to identify the root causes of the problem. Lack of scheduling, incomplete patient information, lack of test result alerts, lack of clarity in patients about the hospital layout, workstation downtime, delays from other appointments, and demand fluctuations were a few of the root causes.

Lean Six Sigma tools like Pareto analysis, Control charts, Value Stream Maps, and data analytics were used as part of the project.

The integrated mobile alert system, standardising the lab data reporting, revamping the scheduling system, eliminating non-value adding activities and process bottlenecks, staff training, etc., were a few improvements executed in the cardiology department.

Consequently, the turnaround time was reduced to 240 minutes, with a standard deviation of 9 minutes. The Lean Six Sigma project delivered an annual cost saving of about INR 3.4 million, increasing patient satisfaction to 91 per cent.

Further, it contributed to learning, excitement in the participating stakeholders towards a cultural change. Customer centricity, process orientation, data-driven decision making were a few learnings highlighted by the participants. 

In another Indian hospital, the accuracy of the Medical Records Department was improved from 89 per cent to 97 per cent using Lean Six Sigma. Another example was reducing the turnaround time in a mobile hospital that provides free medical services to ~3000 villages in the Indian state of Andhra Pradesh, using Lean Six Sigma’ss DMADV methodology.

In another assignment, we noted a significant reduction in medical insurance claims from 1.5 per cent to 0.8 per cent. Here, by improving the process sigma value from 3.66 to 4.52, the healthcare firm realised a cost avoidance benefit of about INR 38 million. 

An overview of research literature on Lean Six Sigma indicates that ~20 per cent of publications on Lean Six Sigma in services sectors are specific to healthcare. This shows an increasing interest in Lean Six Sigma by healthcare practitioners.

While it offers both process and data lenses to examine problems towards a resolution roadmap, practitioners endorse it to be easy to learn and effective when applied.

Thus, it will be a worthy future direction for healthcare professionals like doctors, administrators, lab personnel, and other clinical and non-clinical technicians to learn and apply Lean Six Sigma for continuous improvement. 

Alongside management learning, it sets an agenda for total personnel participation towards building a continuous improvement culture (beyond individual projects), a critical gap to bridge, and a worthy opportunity to pursue in the healthcare space.

With digital automation, robotics, and information and communication technologies being applied faster in healthcare institutions, it is important for them to embark on the Lean Six Sigma journeys. As a pre-requisite to technology deployment, Lean Six Sigma would help hospitals and other healthcare institutions streamline their processes and improve them as deserving candidates for digitisation.

The writer is an Assistant Professor of Practice at the Indian School of Business (ISB), Hyderabad, India. He is a Lean Facilitator and Six Sigma Master Black Belt practitioner, and an Affiliate Faculty with the Max Institute of Healthcare Management (MIHM) at ISB.

Mapping the Healthcare Value Stream

Using Six Sigma to Reduce Pressure Ulcers at a Hospital

Since 2001, Thibodaux Regional Medical Center (TRMC) in Louisiana has applied Six Sigma and change management methods to a range of clinical and operational issues. One project that clearly aligned with the hospital’s strategic plan was an initiative to reduce nosocomial or hospital-acquired pressure ulcers, because this is one of the key performance metrics indicating quality of care.

Although the pressure ulcer rate at the medical center was much better than the industry average, the continuous quality improvement data detected an increase between the last quarter of 2003 and the second quarter of 2004.

In October 2004, a Six Sigma project to address this issue was approved by the hospital’s senior executives. A team began to clarify the problem statement. Their vision was to be the “Skin Savers” by resolving issues leading to the development of nosocomial pressure ulcers. The project team included a Black Belt, enterostomal therapy registered nurse (ETRN), medical surgical RN, ICU RN, rehab RN and RN educator.

Scoping the Project

Through the scoping process, the team determined that inpatients with a length of stay longer than 72 hours would be included, while pediatric patients would be excluded. The project Y was defined as the nosocomial rate of Stage 2, 3 and 4 pressure ulcers calculated per 1,000 patient days. Targets were established to eliminate nosocomial Stage 3 and Stage 4 pressure ulcers and reduce Stage 2 pressure ulcers from 4.0 to less than 1.6 skin breaks per 1,000 patient days by the end of the second quarter of 2005.

The team developed a threats and opportunities matrix to help validate the need for change (Table 1). They encountered some initial resistance from staff, but were able to build acceptance as the project began to unfold.

Table 1: Threats and Opportunities Matrix
Threat Opportunity
Short Term Increase length of stay Improve quality of care
Increase costs Decrease medical complications to patient
Increase medical complications to patient
Long Term Decrease patient satisfaction Improve preventative care measures
Increase morbidity rate Improve hospital status/image
Decrease physician satisfaction Increase profitability
Increase number of lawsuits Improve customer satisfaction
Decrease reimbursement
Loss of accreditation

Measurement and Analysis

During the Measure phase, the team detailed the current process, including inputs and outputs. Using cause and effect tools, process steps having the greatest impact on the customer were identified as opportunities for improvement. The team also reviewed historical data and determined that overall process capability was acceptable, but that the sub-processes had a great deal of room for improvement. Improving these sub-processes would positively affect the overall process and further improve quality of care.

Measurement system analysis on the interpretation of the Braden Scale was performed to verify that results obtained by staff RNs were consistent with the results obtained by the enterostomal therapy RN, because this is the tool used to identify patients at risk of developing a pressure ulcer. This analysis indicated that the current process of individual interpretation was unreliable and would need to be standardized and re-evaluated during the course of the project.

A cause and effect matrix was constructed to rate the outputs of the process based on customer priorities and to rate the effect of the inputs on each output (Figure 1). The matrix identified areas in the process that have the most effect on the overall outcome, and consequently the areas that need to be focused on for improvement (Table 2).

The team identified several critical Xs affecting the process:

  • Frequency of the Braden Scale – The Braden Scale is an assessment tool used to identify patients at risk of developing pressure ulcers. Policy dictates how frequently this assessment is performed.
  • Heel protectors in use – Heel protectors are one of the basic preventative treatment measures taken to prevent pressure ulcers.
  • Incontinence protocol followed – Protocol must be followed to prevent against constant moisture on the patient’s skin that can lead to a pressure ulcer.
  • Proper bed – Special beds to relieve pressure on various parts of the body are used for high-risk patients as a preventative measure.
  • Q2H (every two hours) turning – Rotating the patient’s body position every two hours is done to prevent development of pressure ulcers.

Figure 1: Cause-and-Effect Matrix

Table 2: Data Analysis

Process

Defects

Opportunities

% Defective

Z Score

Overall Process

64

16,311

0.39

2.66

Braden Scale Frequency

10

76

13.16

1.12

Proper Bed

24

76

31.58

0.48

Q2H Turning

49

76

64.47

-0.37

Data analysis revealed that the bed type was not a critical factor in the process, but the use of heel protectors, incontinence protocol compliance, and Q2H turning were critical to the process of preventing nosocomial pressure ulcers. The impact of the Braden Scale frequency of performance was not identified until further analysis was performed (Figure 2).

Figure 2: One-Way Analysis of Means for Sub-Process Defects

Evaluating data specific to at-risk patients, the team separated populations who developed nosocomial pressure ulcers from those who did not have skin breakdowns. The Braden Scale result at the time of inpatient admission from each population was analyzed to see the effect on development of a nosocomial pressure ulcer. One unexpected finding was that the admit Braden Scale result was higher for patients who develop nosocomial pressure ulcers than for those who do not develop them, showing that patients at risk are not being identified in a timely manner, thus delaying the initiation of necessary preventative measures.

The team then looked at defects for Braden Scale frequency of performance for each population of patients using a chi square test. They found the frequency of Braden Scale performance did have an effect on the development of nosocomial pressure ulcers. This was confirmed with binary logistic regression analysis (Table 3).

Table 3: Binary Logistic Regression Analysis
Process

Coefficient

Odds

Probability

Odds Ratio

No Defects

–0.5222

0.59

0.37

N/A

Braden Scale Defects

2.54322

7.55

0.88

12.72

Bed Defects

1.56220

2.83

0.74

4.77

Q2 Turn Defects

–2.16870

0.07

0.07

0.11

The most significant X is the Braden Scale frequency of performance. This analysis confirmed the need to increase the frequency of Braden Scale performance to identify at-risk patients.

Recommendations for Improvement

During the Improve phase, recommended changes were identified for each cause of failure on the FMEA with a risk priority number of greater than 200. Some of the recommendations include:

  • Frequency of Braden Scale performance to be increased to every five days
  • Braden Scale assessment in hospital information system (HIS) to include descriptions for each response
  • Global competency test on interpretation of Braden Scale to be repeated annually
  • Prompts to be added in HIS to initiate prevention/treatment protocols
  • ET Accountability Tracking Tool to be issued for non-compliance with prevention and treatment protocols as needed

The Braden Scale R&R was repeated after improvements were made on the interpretation of results. The data revealed an exact match between RNs and the ETRN 40 percent of the time, and RNs were within the acceptable limits (+/– 2) 80 percent of the time. Standard deviation was 1.9, placing the results within the specification limits. The data indicated that the RNs tend to interpret results slightly lower than the ETRN, which is a better side to err on because lower Braden Scale results identify patients at risk of developing pressure ulcers.

The Control Phase

Another round of data collection began during the Control phase to demonstrate the impact of the improvements that had been implemented. A formal control plan was developed to ensure that improvements would be sustained over time, and the project was turned over to the process owner with follow-up issues documented in the Project Transition Action Plan.

The team implemented multiple improvements, including compilation of a document concerning expectations for skin assessment with input from nursing and staff. They also gave a global competency test on interpretation of the Braden Scale, which will be repeated annually. The Braden Scale frequency was increased to five days, and they corrected the HIS calculation to trigger clinical alerts for repeat of the Braden Scale. Prompts were added for initiating the Braden Scale, and monthly chart audits were developed for documentation of Q2H turning. A turning schedule was posted in patient rooms to identify need and document results of Q2H turning of patient. Additional solutions included the following:

  • ETRN to attend RN orientation to discuss skin issues
  • Revise treatment protocol to be more detailed
  • Wound care products to be reorganized on units
  • Unit educators to address skin issues during annual competency testing
  • CNA and RN to report at shift change to identify patients with skin issues
  • Task list to be created for CNAs
  • ET accountability tracking tool to be issued for non-compliance with prevention and treatment protocols as needed

Results and Recognition

Since this was a quality-focused project, the benefits are measured in cost avoidance and an overall improved quality of care. A 60 percent reduction in the overall nosocomial pressure ulcer rate resulted in an annual cost avoidance of approximately $300,000.

To make sure their initiatives are producing a positive impact on the patient care environment, the hospital continuously measures patient and employee satisfaction through Press Ganey. Inpatient satisfaction is consistently ranked in the 99th percentile and employee satisfaction in the 97th percentile. TRMC also has received recognition in the industry for their achievements, including the Louisiana Performance Excellence Award for Quality Leadership (Baldrige criteria), Studer Firestarter Award and Press Ganey Excellence Award.

“This project is a perfect example of the need to verify underlying causes using valid data, rather than trusting your instincts alone,” said Sheri Eschete, Black Belt and leader of the pressure ulcer project at TRMC. “Six Sigma provided us with the tools to get to the real problem so that we could make the right improvements. There had been a perception that not turning the patients often enough was the issue, but the data revealed that it was really the frequency of the Braden Scale. Leveraging the data helped us to convince others and implement appropriate changes.”

The nosocomial pressure ulcer rate is monitored monthly as one of the patient-focused outcome indicators of quality care. The results are maintained on the performance improvement dashboard (Figures 3 and 4).

Figure 3: Stage 3 and 4 Nosocomial Ulcers

Figure 4: Stage 2 Nosocomial Ulcers

Learn more about lean six sigma in healthcare :  Six Sigma Master Class – Improving Healthcare Processes

Congratulations Heather Kincaid on Becoming a Certified Lean Six Sigma Black Belt

3/23/2016 For Immediate Release – Phoenix, Arizona * United States

TPMG would like to congratulate Heather Kincaid for successfully completing the Lean Six Sigma Excellence in Healthcare Delivery Black Belt Certification program and earning her lean six sigma black belt!  She successfully completed a rigorous 16 unit – 65 lesson online blended lean six sigma black belt workshop by passing the certification examination with distinction.  Her lean six sigma certification project’s objective was to optimized the ambulatory work flow in the orthopedic clinic(s) she supports.  Heather expertly used the DMAIC improvement model along with lean management and the six sigma analytic tool set to bring about favorable sustained changes.   Her improvement plans addressed the root causes and produced results that showed a marked improvement in the clinic as well as realized savings from the staffing model.  Her project produced savings of $157, 184 (annualized) that will continue to pay dividends every year going forward. Congratulations Heather!

Heather Kincaid is a Process Engineer for the Wexner Medical Center Management Engineering and Process Improvement team and has been a respected member of the team since 2012.  She holds a Masters of Science in Industrial Engineering from The Ohio State University and a Bachelors of Arts Degree in Mathematics from Denison University.

The Performance Management Group’s Lean Six Sigma Excellence in Healthcare Delivery Black Belt Certification Program is specifically designed for professionals who work for healthcare clinics, hospitals and systems. TPMG has been certifying green belts and black belts for more than 15 years. The company provides lean six sigma certification on-site, online, and on-campus (at the University of Phoenix) nationwide. For more information regarding lean six sigma training, certification and consulting – contact TPMG llc at 623.643.9837 or logon to www.helpingmakeithappen.com.

Congratulations Vicki Chernoff on becoming Masters Certified in Continuous Healthcare Improvement!

1/07/2016 For Immediate Release – Phoenix, Arizona * United States

TPMG would like to congratulate Vicki Chernoff for successfully completing the Masters Certification for Continuous Healthcare Improvement program and earning her MCHI Certification!  Vicki successfully completed a rigorous 10 unit – 45 lesson online Masters Certification in Continuous Healthcare Improvement workshop by passing the certification examination with distinction.  This accomplishment acknowledges she has fulfilled the requirements for the MCHI program of study and, from this day forward, is certified as a MCHI professional.  By completing this distinctive course, she is qualified and authorized to implement Continuous Improvement and Performance Management systems.  Congratulations Vicki!

Vicki Chernoff is a Senior Clinical Data Analyst Mission Hospital.   She holds a BSN from Saddleback College, a Bachelor of Arts in Psychology from Concordia University Irvine, and a Masters Of Arts Degree in Research Psychology from San Fransisco State University.

The Performance Management Group’s Masters Certification for Continuous Healthcare Improvement program is specifically designed for professionals who work for healthcare clinics, hospitals and systems. TPMG has been certifying continuous improvement professionals for more than 15 years. The company provides training and certification on-site, online, and on-campus (at the University of Phoenix) nationwide. For more information regarding lean six sigma training, certification and consulting – contact TPMG llc at 623.643.9837 or logon to www.helpingmakeithappen.com.

Congratulations Dr. Ronald Jimenez MD on becoming a Certified Lean Six Sigma Green Belt!

1/07/2016 For Immediate Release – Phoenix, Arizona * United States

TPMG would like to congratulate Dr. Ronald Jimenez MD for successfully completing the Lean Six Sigma Excellence in Healthcare Delivery Green Belt Certification program and earning his lean six sigma green belt!  Dr. Jimenez successfully completed a rigorous 10 unit – 45 lesson online lean six sigma green belt workshop by passing the certification examination with distinction.  This accomplishment acknowledges she has fulfilled the requirements for the green belt program of study and, from this day forward, is certified as a Lean Six Sigma Green Belt.  By completing this distinctive course, she is qualified and authorized to implement lean applications and performance management systems.  Congratulations Dr. Jimenez!

Dr.  Jimenez is a Principal Consultant Sagacious Consultants (Now part of Accenture) and holds a Doctor of Medicine from the University of Southern California.    In addition to his Lean Six Sigma Green Belt Certification,  Dr. Jiminez holds a Certificate in Biomedical Informatics from Oregon Health and Science University School of Medicine along with a variety of other prestigious qualifications.

The Performance Management Group’s Lean Six Sigma Excellence in Healthcare Delivery Green Belt Certification Program is specifically designed for professionals who work for healthcare clinics, hospitals and systems. TPMG has been certifying green belts and black belts for more than 15 years. The company provides lean six sigma certification on-site, online, and on-campus (at the University of Phoenix) nationwide. For more information regarding lean six sigma training, certification and consulting – contact TPMG llc at 623.643.9837 or logon to www.helpingmakeithappen.com.

Congratulations Felicia Sadler on becoming a Certified Lean Six Sigma Black Belt!

1/07/2016 For Immediate Release – Phoenix, Arizona * United States

TPMG would like to congratulate Felicia Sadler for successfully completing the Lean Six Sigma Excellence in Healthcare Delivery Black Belt Certification program and earning her lean six sigma black belt!  She successfully completed a rigorous 16 unit – 65 lesson online blended lean six sigma black belt workshop by passing the certification examination with distinction.  In addition, she service as a Malcolm Baldrige examiner on the Tennessee Center for Performance Excellence Board of Examiners.  Ms. Sadler was selected to serve on a Level 4 team which evaluated an applicant from the healthcare sector.  As a member of the team she:

  • Conducted an independent review of the written application addressing all 17 items of the Criteria for Performance Excellence.
  • Consolidated findings from Independent Review for assigned items during the Consensus Review stage.
  • Participated in Consensus Meetings to reach agreement on the organization’s strengths and opportunities for improvement to verify/clarify during site visit.
  • Participated in a 3-day Site Visit at the applicant’s facility, where the team interviewed staff, reviewed documents, and toured facilities.
  • Participated in post-site visit meeting to review findings, and finalize feedback comments.

Congratulations Felicia!

Felecia is Vice President of Quality and Performance at Prophecy Healthcare.  She holds a BSN in Nursing from South University and an MJ in Health Law from Loyola University Chicago School of Law.  Felicia has over 25 years of successful experience as a nurse, clinical educator and healthcare administrator.

The Performance Management Group’s Lean Six Sigma Excellence in Healthcare Delivery Black Belt Certification Program is specifically designed for professionals who work for healthcare clinics, hospitals and systems. TPMG has been certifying green belts and black belts for more than 15 years. The company provides lean six sigma certification on-site, online, and on-campus (at the University of Phoenix) nationwide. For more information regarding lean six sigma training, certification and consulting – contact TPMG llc at 623.643.9837 or logon to www.helpingmakeithappen.com.

Pediatric Hospital in Tough Market Pegs Growth to Lean Process Improvement

By Tonya Vinas

Akron Children’s Hospital (ACH), a regional pediatric care system headquartered in Northeast Ohio, could be compared with David, the young lad who courageously brings down a giant in a classic Old Testament tale.

In this story, though, David battles two giants.

Akron is about 35 miles south of Cleveland, where two nationally ranked pediatric hospitals draw families from around the world who need specialized care for their children’s complex medical problems. Parents are attracted to the hospitals’ international reputations for being among the best: The Cleveland Clinic’s Children’s Hospital and University Hospital’s Rainbow Babies and Children’s Hospital are known for breakthrough research, life-saving surgeries and treatments, and other medical innovations. They also aggressively recruit gifted doctors, leading scientists, and other medical experts at the top of their professions.

But ACH, which certainly has a stellar regional reputation, is taking a unique weapon into the field as it battles for a bigger slice of the state’s pediatric care market. While the two Cleveland hospitals have continuous-improvement programs, neither has made continuous improvement a strategic imperative across its entire enterprise as ACH has.

The hospital’s Center for Operations Excellence (COE) is the engine that propels all employees and functions toward the growth goals set by executives and board members in hoshin kanri (strategy deployment) planning. Leaders are confident that the COE and its lean six sigma-focused training and project leadership give ACH enough competitive advantage to succeed, even in the same geographic market as two healthcare giants.

ACH’s expansion plan includes increasing the number of patients served both geographically and within certain sub-specialties; becoming the No. 1 choice for parents and referring physicians through quality achievements and availability of services; improving on infrastructure, quality, and clinical programs; and becoming the primary site for pediatric medical research in Northeast Ohio.

Already, the three-year-old COE has been widely embraced and highly effective. Projects have saved ACH millions of dollars, increased utilization of expensive assets, and reduced wait times and processing for patients and their families. The short-term gains are important, said Doug Dulin, the COE’s senior director, but the learning and commitment that each project builds internally are more crucial.

“What it comes down to is that we have to create a competitive advantage,” said Dulin, who learned the Toyota Production System at Aoyama Seisakusho, a Tier One supplier to Toyota Motor Manufacturing. “So how can we transfer what we’ve already done into every segment of the hospital? That’s how the Center for Operations Excellence fits in. This is a long-term journey.”

Akron Children’s Hospital at a Glance

  • Largest pediatric healthcare system in northeast Ohio.
  • Operating two freestanding pediatric hospitals and offering services at nearly 80 locations.
  • Pediatric specialties draw half a million patients annually, including children, teens, and adults from all 50 states and around the world.

Level-Loading Schedule Improves Quality, Access, and Revenues

In addition to the challenge of having two highly regarded competitors in the market, ACH must do much more with much less. It doesn’t receive the numerous large grants and donations that the others do; and since all of the hospital’s patients are children, it can’t rely on Medicare reimbursements. Also, both the Clinic and UH are closely aligned with Case Western University Medical School in Cleveland, and so have access to more intellectual property, research programs, emerging technologies, and other assets than ACH has.

The hospital system’s smaller and less complex operation, however, seems to have been an advantage for quickly absorbing the lean culture. Evidence of how open all levels of the organization have been to lean is the speed with which a large number of employees — including doctors — have come together to identify problems, find the root causes, and then agree on countermeasures.

“There’s something about the culture at Children’s that allowed this to be very effective, very quickly,” said Board Member Bill Hopkins. “They were just primed for this. It speaks volumes about the commitment from everybody — the leadership, staff doctors, nurses.”

For example, MRI scheduling was one of the first areas the COE addressed because it had potential for significant and fast improvement, and because the hospital had not been able to effectively utilize a second MRI machine it had purchased. The most apparent barrier was a bottleneck in scheduling.

A kaizen event revealed that variability was the root cause:Children are more prone to move during exams when they need to be still, a reality that extends their appointment times because readings frequently need to be delayed or redone. On any given day, more than half of the hospital’s patients are five-years-old or younger, and so are particularly prone to moving during exams. Some children need to be sedated to keep them still. This causes more variability because a doctor needs to administer the sedation, and doctors’ schedules routinely change without notice because of emergencies and other unexpected events. The result was a backlog of patients with appointments, and long wait times for those needing new appointments.

The two-day kaizen — which included radiologists, radiology technologists, schedulers, nurses, and the employees who handle insurance authorization and registration — produced multiple solutions:

  • Modifying the master schedule.
  • Streamlining the insurance authorization Process.
  • Implementing standardized work instructions.

As is often the case with a level-loading solution, modifying the master schedule seemed counterintuitive, but it worked. More time was scheduled for each exam, a change that made it easier for the end-to-end Process to absorb variability and remain level (on schedule). This eliminated the bottlenecks that were causing the long wait times for exams and results. In cycle-time terms, the “appointment-to-results” cycle shrunk drastically as the department got its scheduling Process under control. As a result, more capacity opened, and this allowed an increase in throughput (appointments) without adding resources.

“Before the kaizen, the hospital was doing about 86 MRIs per week. Now, on average, we are doing 112,” Dulin said. “That is good news for our patients and the physicians who are waiting on the results of those tests. Instead of waiting 25 days for an uncomplicated exam, families can now schedule same-day appointments.” (See chart: Outpatient MRI Appointment Wait Times.)

The project significantly improved the hospital’s bottom line, with $1.2 million in additional revenue attributed to the better MRI scheduling.

It also earned ACH an honorary mention award at the International Quality and Productivity Center’s Lean six sigma & Process Improvement Summit in January, 2011. The award was in the category of “Best Process Improvement Project Under 90 Days,” with Akron Children’s competing against five other international companies and organizations that were selected as finalists.

akron_childrens_exam_table

Surgery: Greater Capacity, Higher Quality without $3.5 Million Expansion

Perhaps the most striking example of how lean processes will feed ACH’s efficient growth is the avoidance of spending $3.5 million to enlarge the sterile processing area within the surgery department. According to Mark Watson, president of the ACH Regional Network, surgeons were performing 12,000 operations a year, and the number of cases was increasing. (They performed 14,000 in 2010.) Sterilization technicians had a hard time keeping up, but expanding space and staff would have been a problem.

“Our surgery area is landlocked,” explained Watson, who first introduced the idea of lean Process improvement to the hospital. “In order to give sterile processing more, I would have to take away from someone else. So we started really looking at what was going on in the operating room, and we started with our flash-sterilization rate.”

The team decided this was the most urgent need — a flash sterilization rate of 10 percent was not acceptable, Watson said. (Flash sterilization is the immediate and unscheduled sterilization of instruments that have been dropped or otherwise contaminated during the surgery processes. It is a quality problem that creates variability and waste.) They scheduled a kaizen focused on reducing flash sterilization. The resulting improvements not only reduced flash sterilization to 2 percent, but also opened all the capacity needed to add an additional 4,000 surgeries a year.

“It was amazing what happened in the week-long program,” Watson said. “We fixed flash sterilization, and increased the capacity of the operating room to 16,000 cases. We invested in one flat-screen TV, and we took down one wall. We have a sterile processing department that could handle all the work that was there and more without expanding one square foot.

akron_childrens_baseball_image

(Continuous-improvement ideas contributed by clinical coordinators from Akron Children’s Hospital Radiography School program)

“And now, we’ve done two capacity studies on surgery, and we are running at 64 percent. It will take 2.5 years, but we want to get to 85 percent efficiency, which would mean around $15 million in additional revenue in the same operating room with essentially the same people.”

Low-Tech Solutions Increase Customer Value

In addition to increasing the number of procedures, the hospital is focusing on patient Value in the form of decreasing wait times and increasing accessibility to doctors and services. This supports the goal of being the No. 1 choice for Northeast Ohio parents.

Outpatient doctor visits was an obvious place to start. If there is any customer who is most deserving of getting more from service providers, it’s a parent with a sick child. Emotionally drained and frequently exhausted, such parents Value predictability and kept promises. Less time spent at the doctor’s office means more time to take care of themselves and their families.

The doctors, nurses, and other employees at ACH’s Locust Pediatric Care Group know this. When deciding on a Process improvement goal, their focus was reducing the amount of time that established sick patients spend in the clinic. By its nature, the clinic is an unpredictable place as patients stream in from the city of Akron and surrounding urban and rural communities. Many of the children are poor, recent immigrants, or in foster care. All of them have potentially complex social and medical needs, and all of them receive care regardless of ability to pay.

Through a series of kaizens and A3-based project planning and implementation, the Locust team identified and implemented a number of improvements that reduced patient in-clinic time from 70 minutes (2009) to 43 minutes (2011). Significant improvements included:

  • Converting paper charts to electronic medical records, which helped to streamline the information flow.
  • Implementing visual whiteboards that track patient flow during the appointment.
  • Adding a team-wide “huddle” at the start of the day to prevent problems, such as scheduling issues.
  • Eliminating triage rooms — where patients would be evaluated for priority of care — instead using mobile triage carts in the exam room.

The team is working on more definitive documentation, but early feedback is that customer Value has increased.

“Office flow and access are the two biggest areas at Locust Peds where we can meet and exceed expectations from our patient families,” said Cindy Dormo, vice president for Pediatrics. “Now we’re measuring patient throughput and reviewing feedback from patients, which in the past has included complaints about long wait times, but is now turning favorable.”

Blue Belt Training Brings More People In

Dormo and other top-level executives said a key to the COE’s success is a focus on engaging all levels of the organization. Most recently, the COE team created a Blue Belt training program to focus on department and functional leaders, positions that would be considered “middle management” in a corporate setting. According to Dulin, the Blue Belt program is another example of how the COE program is directly supporting strategic growth goals.

“Our goal is to have this touch everyone. We then have everyone supporting the hospital’s goals, which then improves all of our major systems,” Dulin said.

Taking advantage of interest and enthusiasm generated by the MRI project’s success, the COE team chose the radiology department for the first Blue Belt training program. Every lead technologist, supervisor, manager, director, radiologist, the department chair and vice president participated.

Blue Belt participants learn how best to use the talents of their staff to streamline operations, improve the quality of care provided, and reduce variability and waste. Lessons focus on daily communication among staff members and leadership, learning how to track and improve daily metrics, and creation of standardized processes that stabilize patient flow.

The Blue Belt program is spreading to other departments. The plan is to begin with Dept. of Pediatrics employees, and then expand to surgical subspecialties, the Akron Children’s Heart Center, and Neurodevelopmental Sciences Center. In all at least 300 employees will have completed or been affected by Blue Belt training by the end of 2011.

Lessons Learned and a New Opportunity

Watson, the hospital executive who introduced continuous-improvement at ACH, identified these key factors as contributing to the COE’s early success:

Founding COE leaders: “After the decision was made to go with lean, I spent almost three months selecting people from our organization to help us on our lean journey,” he said.

Watson purposefully chose individuals who were successful, respected by their peers, and brought diverse backgrounds to the effort. These included a doctor with lean six sigma knowledge, a pharmacist who had just completed her Pharm.D., a medical technologist, a nurse, an M.B.A., and an administrator.

akron_childrens_rubin_st_john_etc

(From left, Dr. Mike Rubin, Dr. D. Scott St. John, Dr. Godfrey Gaisie, and Dr. Azam Eghbal from the Radiology Dept. hold their daily accountability meeting as part of continuous-improvement Blue Belt Training.)

Watson also stressed the importance of having a practicing physician on the team. When Dr. David Chand joined ACH after working as a consultant, he dedicated 20% of his time to the COE and the rest to seeing patients. His role in the CEO has since expanded to about 90% of his time, but he will always see patients.

“When you are dealing with physicians, in order to be considered part of the club, you really need to have a stethoscope and see patients,” Watson said. “They like to interact with other physicians who are seeing patients. That’s just the way it is.”

Chand has been invited to work on improvement projects in many areas of the hospital and has become the go-to man for other doctors interested in learning more about the COE, some of whom are in the Process of green-belt certification. His personal A3 projects have included removing non-Value-add time from the residents’ patient-rounding Process (daily in-person visits to patients).

Investing in education and training: Watson said an additional attribute that he looked for in team members was a quest for life-long learning.

After he assembled the team, Watson immediately sent them to a lean six sigma program at Johns Hopkins University, which included six weeks of learning over a four-month period of time (with project work done at ACH). The team then spent a week at Seattle Children’s Hospital to observe and learn from that CI program. In 2010, two team members received master’s degrees in operational efficiency and black belts from Ohio State University. Three others are now going through the course and will graduate in 2011.

Additionally, several department VPs have attended classes at Johns Hopkins and programs at Seattle Children’s Hospital.

“But we made a mistake,” Watson said. “When we started, we started with our front-line people working on projects with the A3 Process. And we had very good engagement from the executive level, vice president and above. But what we left out was that middle manager level.

“Now the middle managers are really enjoying and learning with the Blue Belt program. The A3 Process works much better now that we’ve covered the entire organization in terms of learning what we are doing. Our tagline is Process improvement through people development.

Accepting failures/celebrating success: Not every project will be successful, Watson said, “and if they are all successful, you are not taking enough risks.”

ACH’s ambition is being noticed and rewarded outside of its own facilities. This year, it was awarded a contract by a third Cleveland hospital, MetroHealth Systems, to provide pediatric care in cardiology, gastroenterology, cancer and blood disorders, and critical care.

“We are impressed by how fully Akron Children’s is integrated into the region, how well it has partnered with other hospitals, and its growth, having added 77 individuals to its medical staff in

2009,” said Margaret Stager, chair of the Dept. of Pediatrics at MetroHealth. Previously, UH pediatric specialists were contracted to provide the services.

 Akron Children’s Hospital Center for Operations Excellence

A3 Program

  • Started in January of 2009
  • Eight-week Lean six sigma Training designed for the people who do the work on a daily basis
  • Projects are done on A3 paper using the DMAIC (Define, Measure, Analyze, Improve, Control) methodology
  • Meet weekly for two hours of class time and one hour of coaching

Green Belt Program

  • 10 Green Belts certified through Johns Hopkins Center for Innovation in Quality Patient Care
  •  20 Green Belt candidates working on certification through Akron Children’s Hospital’s Green Belt Training Program.
    • Candidates and projects selected by hospital leadership
    • Ten days of training and project work spread out over five months using DMAIC methodology
    • Tollgate session at the end of each DMAIC step

 Kaizen Program

  •  Two-to-five-day rapid Process improvement events
  •  Strategically driven by hospital leadership
  •  Multi-disciplined teams that cross over Value streams
  •  Key stakeholders from the Value streams work together to solve problems and implement solutions

 Blue Belt Program

  • Manager/Leader Lean six sigma training for departmental certification
  • Basic understanding of Lean six sigma principles and tools: gemba walks, daily huddles, Value stream maps

Akron Children’s Hospital: As the largest pediatric healthcare provider in northeast Ohio with hospital campuses in Akron and the Mahoning Valley, the dedicated team at Akron Children’s Hospital promotes the well-being of children now and in the future. We perform more than 600,000 patient visits each year at more than 85 locations. Our specialists care for infants, children, teens, and adults treating a wide range of conditions from routine primary care to the most complicated injuries and illnesses.

Akron Children’s earned the Gold Seal of Approval from the Joint Commission, as well as Magnet Recognition Status for nursing excellence from the American Nursing Credentialing Center. We are a major teaching affiliate of Northeastern Ohio Universities Colleges of Medicine and Pharmacy, and offer a number of pediatric subspecialty fellowship training programs. Our Rebecca D. Considine Research Institute is committed to advancing the prevention and treatment of pediatric illnesses and supporting the education and training of research staff. For more information, visit http://www.akronchildrens.org.

For more information regarding Lean Transformation in Healthcare, contact TPMG Professional Services at Lean Management Excellence in Healthcare Delivery.

Learn more about lean six sigma in healthcare :  Six Sigma Master Class – Improving Healthcare Processes

The Value of Lean Six Sigma in Healthcare Delivery

Lean Six Sigma Excellence in healthcare delivery means helping improve patient outcomes while driving down the cost of patient care!

Doing so empowers healthcare providers to become more productive.  Now, more than ever, the healthcare industry needs to embrace the economic value proposition of improving productivity.  For the past 20 years, the industry has experienced negative productivity growth.  The economic consequences of this type of industry performance are stunning.  U.S. health care costs currently exceed 17% of GDP and continue to rise. A PricewaterhouseCoopers report projects that health care costs will increase 7.5 percent in 2013. That is more than three times the rate of inflation and the forecasted rate of US economic growth. That same report also notes that health insurance premiums are expected to rise 5.5 percent, in large part because employers are shifting costs to their employees.  Medicare’s Office of the Actuary forecasts that health care spending will jump to more than 7 percent in 2014.  At the same time, healthcare providers will face unprecedented cuts in reimbursement rates from Medicare and other third party payors.  The bottom line is that until true health care cost reform becomes a reality, these pressures will continue to cause problems for providers, for people’s health care and for the nation’s economy.  Healthcare organizations should use these pressures as motivation to embark upon a relentless pursuit of ever-increasing productivity.

What is the Value Proposition of Lean Six Sigma to the Healthcare Industry?

Lean six sigma is a quality improvement methodology that encourages perfection in the delivery of healthcare services.  From an operational perspective, lean six sigma’s value proposition is to improve productivity.

Value Proposition Operational 1.0

Improving quality creates a “chain reaction”.  When a provider organization improves quality, their costs go down.  Their costs go down to the tune of 20 – 40% of total operating expenses.  The decrease occurs because the costs of wasted effort reworking problems, correcting medical errors, reassuring dissatisfied patients, and reconciling invoices are eliminated.  As these costs go down, productivity naturally improves.  Productivity improves because of the increased use of human capital, technology and working capital in producing favorable patient outcomes.  Better patient outcomes and the termination of the hidden factory leads to greater profit margins and enhanced economic value.  The additional economic value funds growth and innovation, which lead to improved healthcare quality and high value jobs.

Simply put, the drive for better quality of  health outcomes and the drive for increased productivity are not mutually exclusive.  In fact, poor quality is not only poor for healthcare outcomes but also creates a drag on productivity.  As the chart below indicates, as quality improves healthcare cost per capita declines.  This correlation provides ample hope for the drive for improved productivity in the US. Healthcare system.

Cost vs Quality

Lean six sigma is a quality improvement methodology that also improves patient and stakeholder satisfaction.

Value Propositon Patient Satisfaction

From a patient and stakeholder perspective, implementing lean six sigma also creates a “chain reaction.”  When a provider organization implements lean six sigma, they continuously adapt their services to exceed patient needs, attitudes and perceptions.  They accomplish this by translating the voice of the patient into operational requirements.   Over time, they capture the market with greater patient satisfaction and a larger loyal customer base.  Consequently, they are able to make greater contributions to profits or surpluses.  The additional economic value funds growth and innovation, which lead to improved healthcare quality and more high value jobs.

What kind of results have healthcare providers experienced with lean six sigma?

  1. Mount Carmel Hospital Medicare+ Choice Plan reimbursement project reduced coding of working-aged Medicare recipients and resulted in $857k gain in net income.
  2. Commonwealth Health Corporation’s radiology project decreased the time between dictation and signature, reduced patient visit times, and improved staff scheduling.  The project saved $800,000, increased through put by 25% and freed up an additional 14 positions to fill open job requisitions.
  3. Wellmark Inc., (BC&BS Medical Plans)  physician addition to managed care networks project reduced the amount of time for adding a physician to the BC&BS medical plans.  The new process produced $3M per year in savings.
  4. Charlston Area Medical Center’s supply chain management project for surgical supplies reduced inventory levels and improved supplier relationships.  The project garnered an immediate savings of $163,410 and saved an additional $841,540 over the projects lifecycle.

Lean Methods at Miami Children’s Hospital

Why is TPMG’s Lean Six Sigma Excellence in Healthcare Delivery™ a superior program?

The focus of the program is on applying the concepts of performance management and continuous improvement to create and sustain a more productive, efficient and cost effective healthcare delivery organization.   Professionals learn to:

  • Execute the standard process improvement methodology which reduces healthcare delivery costs by 20% – 30%.
  • Use continuous improvement methods to improve patient outcomes and sustain patient satisfaction.
  • Apply lean methodology and proven six sigma practices, in healthcare facilities, that improve operational efficiency and service excellence.
  • Lead hospital executives and performance improvement staff in identifying lean opportunities across the enterprise.
  • Oversee development and execution of lean project plans to support process improvement initiatives.
  • Use Lean 5S, Value Stream Mapping, and other lean process activities in support of performance improvement initiatives.

The value is affordable for any budget.

For one affordable price a practice, hospital or system can take advantage of:

  1. Excellence in Healthcare Delivery Training
    • Executive Champions – up to 25 candidates
    • Lean Healthcare Basic Training for Managers and Individual Contributors – up to 25 candidates
    • Lean Healthcare Black Belt Certification Training – up to 25 candidates
    • Lean Healthcare Green Belt Certification Training – up to 25 candidates
  2. 120 hours of Lean Six Sigma Healthcare Master Black Belt coaching and mentoring.
  3. Free licenses to TPMG’s Lean Six Sigma Excellence in Healthcare Delivery™ training materials.

Experience and expertise counts.

  1. Benefit from a curriculum and best practices built by practitioners from the nation’s finest healthcare systems.
  2. Realize the benefits of greater productivity and cost improvements.  Improvement projects deliver an average of $256,000.00 in hard dollar cost savings per project.  TPMG certified lean six sigma black belts can deliver 4 to 6 projects per year.
  3. Receive mentoring and best practices from certified Lean Six Sigma Master Black Belts with more than 20,000 hours of experience from a cross section of industries like:  healthcare, insurance, shared services, financial services, logistics, call centers, and telecommunications.

To learn more about High Quality, Affordable Lean Six Sigma Training for Healthcare contact TPMG directly by CLICKING HERE!

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