There are several benefits of Lean Six Sigma in healthcare. Issues are solved by a specific project approach, and each separate project tackles a specific issue. Each project uses a DMAIC template, which consists of five steps:

1. Define the problem
2. Measure current data
3. Analyze root causes
4. Improve (solution development)
5. Control (Process plan to sustain)

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Cigna Corporation is a health insurance provider that decided to use Six Sigma methodologies to improve their processes and how operations were done. During the analyze phase, they uncovered inaccurate, faulty data, mainly because the data included in the findings didn’t paint the entire picture.

• The data only included that from the original diagnosis of the study, and did not include any subsequent readmissions or other treatments related to the same issue.
• Engagement with high-risk patients was not adequate at all.
• The follow-up plan for discharge and outpatient treatment wasn’t adequate.
• Communications to patients were confusing and unclear.

After improvements were implemented, the results were impressive:

• There was a 53% decrease in readmissions
• A $3,000 savings per patient
• 49% decrease in total in-patient care cost

To establish success using Six Sigma, the following is imperative:

• Continuous Improvement
• Ongoing assessment of projects
• The right leaders for each project

Six Sigma is a methodical system with a goal and without waste. Six Sigma deals with accurate data, so there isn’t any room for error. If all of the healthcare industry used Six Sigma methodologies, we could definitely cure what is ailing our healthcare system.

If you’re a healthcare practitioner and interested in learning Six Sigma for your organization, contact us today!

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Quest Diagnostics is the Fortune 1000 healthcare company, and is a great example of how Six Sigma continuously prepares for the future of a company. Quest Diagnostics started implementing Six Sigma back in 2000, and things were very different back then. Let’s fast forward to present time now: with the internet and the globalization of medicine, testing and even billing moves at lightning speed.

It is evident that QD has kept up. In fact let’s look at what they did from the outside in. Healthcare matters will touch all of us at some point in our lives, if it hasn’t already. If one has dealt personally with health insurance, co-payments, and lab testing, then you have probably dealt with Quest on some level.

Their billing system is just about flawless, easy to read and follow; one knows exactly what you are paying for as well as when the service was provided. It is obvious that VOC (Voice of the Customer) was a huge part of their Six Sigma toolbox that they relied on.

Six Sigma Methodology and Tools

The Voice of the Customer is a very important tool, of course, since the customer is the life source of your business. If there aren’t any customers frequenting your business, this would be akin to a major organ (i.e. heart, lungs) shutting down.

Quest Diagnostics uses the DFSS methodology to keep up with the times, and it seems to be working for their company quite well. DFSS (Design For Six Sigma) and DMADV (Define-Measure-Analyze-Design-Verify) describe virtually the same process, with more of an emphasis on the actual process steps on the DMADV. DFSS is the process for a new product or process from scratch.

Interested in learning more about the methodologies we discussed? For more information on our Six Sigma courses or services, please visit 6sigma.com.

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Adding insult to injury is the fact the that data shows that rising healthcare costs for services are inflated by 30-80%, without any rhyme or reason.

The tool known as the 5 Whys in root cause analysis (RCA) is one of the most important tools that can literally eradicate the underlying cause of specific problems, or better said, identify potential root causes. You can brainstorm and keep asking why on the potential cause and subcause, and keep going until you finally arrive at the root cause.

Variation is a huge culprit in errors being made. Look at all the data and see exactly where in the process the errors are being made. Once you find that, you must make a change in the process so that particular error won’t reoccur. The data will back the change being made to the process.

Root cause analysis is very important in fixing the cause of the problem instead of just dealing with the symptom. Behind every mistake and problem there is waste, and behind waste there is cost.

The benefits of conducting a root cause analysis are:

• Prevents future errors in healthcare, which results in saved lives
• Lower costs
• Increased patient satisfaction
• Increase profit without rising costs

Since healthcare affects us all, mistakes cannot happen especially since one mistake in our personal healthcare can be a matter of life or the lack of…

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