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lean philosophy. - Page 2

post #16 of 28
Hospitals get to pass internal costs directly to the patient, and the patients don't see the price until after the service has already been rendered.

What is the point of being efficient?
post #17 of 28
Quote:
Originally Posted by austinite View Post

Hospitals get to pass internal costs directly to the patient, and the patients don't see the price until after the service has already been rendered.

What is the point of being efficient?

because if it hospitla is private it is a business. and businesses do what? make money if there are mens to increase profits it is the duty of the hospital to enage in that acitvity that does that.

yes they can pass the cost on to the the patients but let use an example
if a hospital uses an estimated x amount of product b a year. liek any business that uses material to provide services be they hospitals machine shops or factories, the idea of having certain y amount of product b is important in case of an accident that dmages a percentage of the material or misuse of it that requires or unexpected in crease in dmeand for that service.
now amount y needsto be calculated no? if you buy too much you cut into your profits, if you buy to little you cut into your profit by not be able to provide the service.
and that is jsut dealign withe the logistic of materials.

the point in short is
mo money mo money mo money.
post #18 of 28
Quote:
Originally Posted by austinite View Post

Hospitals get to pass internal costs directly to the patient, and the patients don't see the price until after the service has already been rendered.

What is the point of being efficient?

While there is defiantly price insensitivity, not only due to no upfront billing but also third party payments, they still want to control costs to maximize profit. Think about it, if an insurance company pays $10,000 for a knee replacement and it costs them $9000 to do, and they can knock that price down to $8500, now if they do 300/yr that's $15,000 in pure profit. Sure $15k might not be much to a hospital, but every little bit helps, and I'm sure they do way more than a few hundred procedures every year.

Also, if the government goes to a single payer system (which there is fear of happening) their reimbursement rates may get sliced hard. I suspect they are trying to get out in front of this.
post #19 of 28
Thread Starter 
And because reimbursements are moving towards capitation. This means that for any given DRG (diagnosis related group), all hospitals will get a set amount of money. If their costs are more than that, too fucking bad for them. So efficiency is very important.

Besides all that, there are some people in this world who could give two shits about the success of the hospital. Instead, they realize that >50% of their revenue is coming from government payments and would rather cost as little to society as a whole as possible. Granted, there aren't many people in power with that kind of attitude, but those people will eventually come to power and dominate the losers who only care about money.
post #20 of 28
Quote:
Originally Posted by slycedbred View Post

And because reimbursements are moving towards capitation. This means that for any given DRG (diagnosis related group), all hospitals will get a set amount of money. If their costs are more than that, too fucking bad for them. So efficiency is very important.

Besides all that, there are some people in this world who could give two shits about the success of the hospital. Instead, they realize that >50% of their revenue is coming from government payments and would rather cost as little to society as a whole as possible. Granted, there aren't many people in power with that kind of attitude, but those people will eventually come to power and dominate the losers who only care about money.

Just wait until you see ACOs.

Btw, "lean" and staffing = does not compute in service industries. Labour is not an item that can be inventoried.

Also, I love how management is always the problem for young hot shots. Because, you know, you end up in a C-suite be sheer fucking happenstance.
post #21 of 28
Thread Starter 
Quote:
Originally Posted by Piobaire View Post


Just wait until you see ACOs.

Btw, "lean" and staffing = does not compute in service industries. Labour is not an item that can be inventoried.

Also, I love how management is always the problem for young hot shots. Because, you know, you end up in a C-suite be sheer fucking happenstance.

you end up being in the c-suite by being really good at working with the system that's in place.

you end up being in the c-suite of a company that destroys the older companies by being new, innovative, and daring

honestly, our hospitals are a fucking mess for a reason. and it sure as fuck isn't because of the future.
post #22 of 28
Quote:
Originally Posted by yjeezle View Post

why does this sound a lot like six sigma?

I work in a manufacturing industry and the GM is really big on lean manufacturing/six sigma/kaizen & gemba thing.

I have no clue how the hospital sector is run so I can't compare.


Unique concept though.
post #23 of 28
Quote:
Originally Posted by slycedbred View Post


you end up being in the c-suite by being really good at working with the system that's in place.

you end up being in the c-suite of a company that destroys the older companies by being new, innovative, and daring

honestly, our hospitals are a fucking mess for a reason. and it sure as fuck isn't because of the future.

Actually, you end up in the c-suite by being a young hot shot...and out growing it.

I also like your last line. Very Obama-ish. Did we win the future? laugh.gif
post #24 of 28
Quote:
Originally Posted by Piobaire View Post


Actually, you end up in the c-suite by being a young hot shot...and out growing it.

I also like your last line. Very Obama-ish. Did we win the future? laugh.gif

You end up in the C-suit by starting your own firm.
post #25 of 28
Quote:
Originally Posted by thenanyu View Post


You end up in the C-suit by starting your own firm.

That's another way. It's also often a very good case study for Founder's Syndrome, and to successfully over come this, once again the young hot shot has to outgrow being the young hot shot.
post #26 of 28
Quote:
Originally Posted by Piobaire View Post


That's another way. It's also often a very good case study for Founder's Syndrome, and to successfully over come this, once again the young hot shot has to outgrow being the young hot shot.

What's the first thing an investment company does after buying a start-up with a good new product? Gets rid of the founder.

RIM is failing because the initial inventors won't let go of their baby.
post #27 of 28
Quote:
Originally Posted by brokencycle View Post


What's the first thing an investment company does after buying a start-up with a good new product? Gets rid of the founder.

RIM is failing because the initial inventors won't let go of their baby.

This is also not age dependent as regards outgrowing things. I'm watching a local company crumble because their 60-something founder can't stop being the young hot shot that started the company. It's like a case study as I watch him favour old time employees over new ones, being the locus of almost all decision making no matter how minor, and having zero succession planning. It's really pretty sad.
post #28 of 28
Lean is fantastic, but unfortunately very few people truly understand what lean is. Lean can easily be applied to areas beyond manufacturing - services, R&D, etc. There have actually already been very successful implementations of lean systems at major hospitals and health care companies and almost every kind of organization that you can imagine.

However, is it easy to implement? Is it easy to get people to go along with it? Is it easy to find experts and champions who know what they are doing? Absolutely not.
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