Streamlining Health Care Operations

Using the success of other industries as a model, this book promotes methodologies, indicators, and ideas that health care organizations can use to streamline their practices and maintain strong profit margins. Based on the core principles embodied in lean logistics-the systematic process of removing waste and inefficiency throughout the purchasing, supply, distribution, and business operations chain-Streamlining Health Care Operations shows health care leaders how to fundamentally restructure their organizations and effectively balance costs, quality, and patient access to excellent care.

Preface

Acknowledgments

About the Author

1 Introduction 1

2 The Value of the Employee 9

3 Access: An Elusive Paradox 23

4 Quality: A Systematic Approach 37

5 Creativity: An Environment for Exponential Growth 53

6 Human Resources: The Critical Component 67

7 Purchasing: A Dynamic Model 83

8 Strategic Technology Assessment: Not Just an Acquisition 111

9 Utilization Management Within Technology Assessment 127

10 Equipment Service: Balancing Quality and Control 143

11 Major Projects: Cost-Effective Expansion and Growth 167

12 Reimbursement and the Business Office: Functions for Success 187

13 Consultants: Less Is More 203

14 Special Concerns: Drive Out Waste 215

Recommended Readings 237

Index 239

"New times demand new thinking, not cosmetic Band-Aids. Audie Lewis clearly has his finger on the pulse of the new economy and of today's health care industry. He is a true pioneer in his field and his ideas are innovative, principled and soundly pragmatic: they work." --Dr. Stephen R. Covey, best-selling author of The 7 Habits of Highly Effective People and chairman, Covey Leadership Center

"I recommend this thoughtful and innovative book to those who care about the American health care system-both in Washington, D.C. and around the country. As we continue to seek ways to improve the efficiency and quality of health care delivery in America, sometimes we look past the kinds of innovative approaches examined in Streamlining Health Care Operations. Audie Lewis's book is an important contribution to this debate." --The Honorable J. Dennis Hastert, Speaker of the House of Representatives, United States of America

"Audie Lewis's examples from health care and other industries and his thought-provoking questions will assist senior executives as they consider how to increase operational efficiencies and improve the care they deliver." --Glenn Pearson, executive vice president, GHA: An Association of Hospital and Health Systems

"A guide for the health care executive needing to provide quality care with resources stretched to the limit." --Joe W. Smith, chief executive officer, National Healthcare Logistics

"After reading this book, health care executives and managers have no excuse for not launching massive efforts aimed at organizational streamlining." --Dean C. Coddington, senior consultant, McManis Consulting, Denver, Colorado AUDIE G. LEWIS is president and chief executive officer of Audie Lewis Consulting, Inc., a national research and consulting firm specializing in cost cutting, business improvement, supply chain analysis, and Internet projection and growth for the health care industry. He is the author of the best-seller The Year 2000 Health Care Survival Guide. Using the success of other industries as a model, this book promotes methodologies, indicators, and ideas that health care organizations can use to streamline their practices and maintain strong profit margins. Based on the core principles embodied in lean logistics-the systematic process of removing waste and inefficiency throughout the purchasing, supply, distribution, and business operations chain—Streamlining Health Care Operations shows health care leaders how to fundamentally restructure their organizations and effectively balance costs, quality, and patient access to excellent care. Written by Audie Lewis, a leader in the movement to improve the efficiency of health care organizations, this essential resource shows how to:

• Reward excellence for creative low-cost solutions
• Implement innovative approaches to patient access
• Create a customer-driven culture
• Educate buyers for long-term success
• Develop an objective economic evaluation model
• Excel at using review committees effectively
• Minimize the impact of past and future mistakes
• Do a total life-cycle analysis
• Use budget control mechanisms

"New times demand new thinking, not cosmetic Band-Aids. Audie Lewis clearly has his finger on the pulse of the new economy and of today's health care industry. He is a true pioneer in his field and his ideas are innovative, principled and soundly pragmatic: they work."
—Dr. Stephen R. Covey, best-selling author of The 7 Habits of Highly Effective People and chairman, Covey Leadership Center

"I recommend this thoughtful and innovative book to those who care about the American health care system-both in Washington, D.C. and around the country. As we continue to seek ways to improve the efficiency and quality of health care delivery in America, sometimes we look past the kinds of innovative approaches examined in Streamlining Health Care Operations. Audie Lewis's book is an important contribution to this debate."
—The Honorable J. Dennis Hastert, Speaker of the House of Representatives, United States of America

"Audie Lewis's examples from health care and other industries and his thought-provoking questions will assist senior executives as they consider how to increase operational efficiencies and improve the care they deliver."
—Glenn Pearson, executive vice president, GHA: An Association of Hospital and Health Systems

"A guide for the health care executive needing to provide quality care with resources stretched to the limit."
—Joe W. Smith, chief executive officer, National Healthcare Logistics

"After reading this book, health care executives and managers have no excuse for not launching massive efforts aimed at organizational streamlining."
—Dean C. Coddington, senior consultant, McManis Consulting, Denver, Colorado