The purpose of this study is to investigate the financial benefits of applying Lean and Six-Sigma methods in acute care hospitals. Lean addresses process flow and bottleneck issues, while Six-Sigma focuses on process variations and production quality. The literature revealed that particular applications of each method yielded different results. On average, Discharge and Length of Stay projects yielded $4.18 million in expenditure reductions, while Revenue Cycle Lean and Six-Sigma returned $4.49 million for the hospitals sampled. Clinical Laboratory, Diagnostic Imaging and Operating Room Departments each averaged financial improvements over $500,000.
The case for adopting Lean and Six-Sigma is extremely compelling to hospital administrators. Lean based projects are simpler and less costly to implement. Six-Sigma programs reported higher startup costs and lengthier completions. The recommendation from this study is to generate momentum with Lean, then, reinvest the benefits into a Six-Sigma program.
|School:||California State University, Long Beach|
|School Location:||United States -- California|
|Source:||MAI 48/04M, Masters Abstracts International|
|Subjects:||Management, Health care management|
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