The Boston Consulting Group and the University of Pennsylvania Wharton describe an approach to reducing waste and increasing "profit" in a hospital setting in their Special Report, Rethinking Lean: Beyond the Shop Floor. Partner and managing director at BCG Jon Scholl describes how a shorter hospital stay results in a quicker turnover of beds where hospitals can treat more patients without additional capital investment:
...a hospital with 800 beds that cuts average length of stay by just 10% can free up nearly 80 beds per year, enabling the delivery of more than 4,000 additional procedures and boosting operating profit by almost $30 million.
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Overwhelmingly, patients surveyed reported more time spent waiting than anything else, beginning from the time they scheduled their appointment. Waiting is one of the 7 wastes in Lean. Booking appointments several weeks in advance leads to no-shows and consequent idle time. Another source of waiting occurs when patients are handed off between different types of medical professionals. A Lean approach to care might assemble a team that focuses on one patient at a time. Chris P. Lee, a professor of operations and information management at Wharton, explains “This reduces hand offs, it reduces medical errors, it reduces length of stay, and it improves patient satisfaction greatly.
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