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Health Care

The health care industry has significant opportunity to improve many aspects of operational performance.

All participants in the healthcare supply chain-from hospitals and group purchasing organizations to manufacturers and distributors-are under extreme pressure to cut costs and enhance efficiency.

Approaches such as Lean, Six Sigma, Process Digitization, Process Innovation, Supply Chain Management, Strategic Management, and Project Management have helped organizations rethink the way they are operating their business and successfully make changes to improve performance.

Information technology is rapidly becoming an enabler to help health care organizations digitize processes, reduce paperwork, eliminate non-value added processes, increase patient safety, and increase the velocity of work activities.

The Process Excellence Council is focused on exploring these issues so that organizations may achieve significant and lasting results, improving patient health and safety and eliminating waste from the system.

  
Opportunities

"Supplies and equipment cost US healthcare providers $200+ billion annually, with about 10-15% of that amount wasted due to inefficiencies and redundancies in the process."

"Supply Chain costs account for as much as 30% of a hospitals expenses, second only to personnel costs."

"Up to 40% of buyer time and 68% of accounts payable staff time are spent on manual order processing. As much as 85% of this activity could be automated."

"Supplier’s sales teams spend up to 49% of their time on non-sales-related activities, and their collection of accounts receivables takes longer than it should due to the significant rework that pricing process complexity and manual ordering create."

"Errors in healthcare, IOM report >99,000 deaths each year caused by errors. "