Alumni Conference 2015
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Lean Healthcare Author Mark Graban, LGO alum '99 gives some points about healthcare operations in the US, how healthcare costs continue to rise, and why unique programs like MIT's Leaders for Global Operations can help solve this problem.
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Alumni Conference 2015
- 1. The Growth That LGOs Need to Help Reverse: Patient Harm and Healthcare Costs @MarkGraban © 2015, Constancy, Inc., All Rights Reserved
- 3. $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 1960 1970 1980 1990 2000 2010 Healthcare Spending Per Capita
- 5. Institute of Medicine – Best Care at Lower Cost: The Path to Continuously Learning Health Care in America
- 6. (United States) Annual Deaths From Medical Errors
- 11. Mary McClinton
- 12. Good News in Healthcare
- 13. MRI Appointment Wait Time 13 2.5 0 2 4 6 8 10 12 14 WeeksWaitingTime
- 14. Door to Balloon Time 92 42 0 10 20 30 40 50 60 70 80 90 100 Minutes
- 15. RN Time at the Bedside 30 60 0 10 20 30 40 50 60 70 80 90 100 PercentofTime
- 18. Denver Health Results • $200 million hard benefit in 7 years • Lowest observed-to-expected mortality among academic health center members of the University Healthsystem Consortium in 2011
- 19. What Works in Healthcare • Lean • Operations 101 • Leadership • Management systems • Customer focus
- 20. What Works in Healthcare • Focus on processes, not blame • Reduce waste to free up time • Look at value streams • Engage everybody in continuous improvement • Stop traditional cost cutting
- 21. What Can You Do?
- 22. Switch Industries • Charles Hodge – Chief Procurement Officer & VP of Supply Chain at Seattle Children’s Hospital – Earlier stints at NUMMI, Applied Materials, etc.
- 23. Mentor a Local Hospital
- 24. Treat Healthcare Like a Supplier, Engage Every Employee • Consumer-driven • Free, easy primary care on site at work • “Centers of Value” • Podcast: – www.leanblog.org/192
- 25. Serigraph vs. U.S. Average
- 26. Steer Patients to “Centers of Excellence” http://www.kevinmd.com/blog/2012/10/walmarts-center-excellence-program-innovation.html
- 27. Get Involved in Non-Profits http://www.louisebatz.org/
- 28. Join a Hospital Board Joe Day Former CEO Freudenberg-NOK Carolyn Corvi Former Executive VP Boeing (LGO Alum)
- 32. Q&A / Contact Info • www.MarkGraban.com • mark@markgraban.com • Twitter: @MarkGraban
Editor's Notes
- 1975 – Switzerland was more expensive than U.S. We’re now 1.5x more expensive in 2011. We spend 2.5x England and almost double that of Canada.
- 3rd leading cause of death in both countries (after heart disease and cancer)
- About one in 10 patients are harmed in hospitals in both countries
- What’s not preventable? Unforseen allergies and unknown drug interactions Not exactly sure how this is determined, but multiple studies in US and Canada reach this conclusion Dr. W. Edwards Deming said 94% of problems are due to the system… I guess it depends partly on how we define “system”
- The problem is NOT bad apples. If only it were that easy…we’ll just fire everybody who ever makes a mistake… we’ll quickly drive away all the bad apples and nobody will harmed anymore? That hasn’t worked and we shouldn’t expect it to work. Firing people who mess up is an overly simplistic solution to a really widespread problem.
- Mary McClinton / Carl Dorsey (“2nd victim”) Medical problem or a Management problem? Everybody is human… sadly, we all make mistakes
- Get involved on committees – family/patient committee, patient safety committee?
- #2 line item expense after materials was HEALTHCARE. In January of 2004, Torinus launched a consumer driven health care plan at Serigraph, asking his employees to accept higher deductibles and reasonable co-pays in exchange for incentives that range from a company paid health savings account, to cash bonuses, to paid time off. Three initiatives are at the heart of the plan — consumer responsibility, the return to the use of primary care doctors over specialists, and identifying high centers of value for health care and rewarding workers for using them. Dan became the company’s first medical tourist when he traveled three hours to Gundersen Lutheran Health System in western Wisconsin for back surgery. The bill for his discectomy and three-day stay with a companion was $12,500. That was one-third less than the average cost in southeastern Wisconsin, where he resides. Serigraph rewarded him for being a shrewd consumer by not charging him a cent for the operation–no deductible, no co-insurance. He won, the company won, and his 500 co-workers won, because they share 25% of the overall cost of Serigraph’s self-insured plan.
- 2.8% increase - would be $800B in savings nationally if all employers did this
- http://www.kevinmd.com/blog/2012/10/walmarts-center-excellence-program-innovation.html
- Carolyn – former Board Chair Patient & Family Advisory Boards Be asked to join for your business expertise Time consuming – often a better option for retired executives Some community hospitals have elected boards Some get started through participation a foundation board or other board
- Survey of 338 hospital CEOs… self ranking, self reporting