lean six sigma practitioners making the transition to healthcare

89
SAINT VINCENT Lean Six Sigma Practitioners: Making the Transition to Healthcare Steve Osborn, CPHQ, CSSBB Saint Vincent Health Center [email protected]

Upload: vijaybijaj

Post on 29-Nov-2014

1.584 views

Category:

Documents


1 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Lean Six Sigma Practitioners Making the Transition to Healthcare

SAINTVINCENT

Lean Six Sigma Practitioners:Making the Transition to

Healthcare

Steve Osborn, CPHQ, CSSBBSaint Vincent Health Center

[email protected]

Page 2: Lean Six Sigma Practitioners Making the Transition to Healthcare

System

Saint Vincent Health Center

Beds 425

Admissions 18,500

ER visits 64,000

Westfield (NY) Memorial Hospital:

4 Beds, ER, 2000 Outpatient Visits

Saint Vincent Surgery Center – 7,900 outpatient surgeries

Saint Vincent Medical Group: 110,000 visits at 13 Primary Care Sites; 11 Surgical and Specialty Practices; ER Docs

Home Health Agency – 8400 visits

System: About 110 leaders

Saint Vincent Health SystemErie, PA

Page 3: Lean Six Sigma Practitioners Making the Transition to Healthcare

3

My Background

Education and Certification• Engineering BS (1980) and

MBA (1982) from Penn State• Started at Saint Vincent in

1990• MS in Healthcare

Administration in 1996• General Health Care Quality

Certification: CPHQ (1996)• Lean Six Sigma Black Belt:

Kent State University• CSSBB: KSU and ASQ (2009)

Hospital Career:• Medical Affairs: 1990 – 1999• Med Staff Quality: 1993-2010• Utilization Management and

Medical Record: 1993-1999• Quality Informatics: created

department in 1990’s• Joint Commission Oversight:

1996-2010• Infection Control and Patient

Safety: 2000 – 2005• Lean Six Sigma: 2006-2010• IRB/CME: 1996-1999; 2010

Page 4: Lean Six Sigma Practitioners Making the Transition to Healthcare

4

Presentation Summary

1. High level SIPOC of Hospitals• Review of Suppliers and Inputs, as they can contribute to

process variation• Overview of distortions created by insurance and device

makers/pharmaceuticals• Review of Outputs and Customers – who is the customer?

2. High level review of Hospital Quality systems and measurement problems

3. Implications for Lean Six Sigma program• Our history of LSS deployment• Thoughts on traditional LSS versus hospital LSS with case

study

Page 5: Lean Six Sigma Practitioners Making the Transition to Healthcare

5

Secondary Themes

• Provide viewpoint of Masters in Healthcare Administration (not MBA)

• More in depth in Quality Systems – too many LSS practitioners are isolated from the other quality functions

• My bias is from the Six Sigma methods, since they have the deepest roots in healthcare

• Our team consensus is to move toward use of TPS (lean) quality management approach

Page 6: Lean Six Sigma Practitioners Making the Transition to Healthcare

Part 1Hospital System SIPOC

Page 7: Lean Six Sigma Practitioners Making the Transition to Healthcare

7

Healthcare System SIPOC

• This model excludes Quality inputs, processes and outputs• It also is not intended to cover every supplier, major process (e.g.

accounting, fund raising, HR, credentialing), or customer• This is simplified to the hospital (but has application to other

healthcare providers (e.g. doctor offices, home health, etc.)

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERSTraining Influences Patient Entry Pay Checks

Age Disparity Registration Caring GratificationExperiences Assessments Workshop

Individual Differences Diagnostics Education/ResidencyAcute Problems Diagnoses Process Perceptions

Chronic Conditions Medical Care Clinical OutputsSocio-economics Other: education Education

Other Risk Factors Other: documentation Ongoing Care (Rx, PT)Health Status Discharge, transitions "Value"

Local Health Resources Coding, Billing, AR Change in Health StatusSociety Healthcare "System" Environment: Food Research/Knowledge

Payment Model Service, Engineering Bills InsurersQuality P4P HousekeepingProducts & Payments Suppliers

Pharmaceuticals

Employees

PhysiciansStaff

Communities

Patient

Suppliers

Patients

Insurers

Community

Page 8: Lean Six Sigma Practitioners Making the Transition to Healthcare

8

Purpose of SIPOC(and Hence My Method)

• The Analyze phase (in DMAIC) is the search for the critical variables causing variation in process outputs.

• The source of variation in an Output “must”be in the Supplier, Inputs or the Process (of a SIPOC)– Your process variation is likely to be more

obvious– Idea is to not forget all the possible Suppliers

and Inputs to your process– Fishbone root cause analysis forces

consideration of inputs (e.g. manpower, machines, etc.)

Page 9: Lean Six Sigma Practitioners Making the Transition to Healthcare

9

STAFFING

Page 10: Lean Six Sigma Practitioners Making the Transition to Healthcare

Staff Training Variation

• Physicians: 8 years of college and medical school followed by 3 to 8 more years of internship, residency and fellowship

• Pharmacy: 7 to 10 years of training• Nurse Practitioners and Physician Assistants: 2

year masters degrees• Nursing: 2 years (RN), BSN (4 years)

– Leadership: Desire for MSN; many are not

• High School (GED): Unit Secretary, Aides, housekeeping, transporters, etc.

Page 11: Lean Six Sigma Practitioners Making the Transition to Healthcare

11

Source: American Medical Association. (2009 Edition). Physician Characteristics and Distribution in the US.

350

300

250

200

150

100

50

0

50

100

150

200

250

300

350

400

450

500

1980 1990 2007

Under 35

35-44

45-54

55-64

65 & Over

Age

45

and

over

Age

und

er 4

4

Num

ber

of P

hysi

cian

s (T

hous

ands

)

Age Group

400

550600

Number of Physicians by Age1980, 1990, and 2007

Page 12: Lean Six Sigma Practitioners Making the Transition to Healthcare

12

0

Num

ber

of R

Ns

(Tho

usan

ds)

Age

und

er 4

0A

ge 4

0 an

d ov

er

AgeGroup

20s

30s

40s

50s

60s

1,000

500

500

1,000

1,500

2,000

1980 1990 2000 2010 (proj.) 2020 (proj.)

2,500

Source: Bureau of Health Professions, Health Resources and Services Administration. (1980-2004). Findings from the National Survey of Registered Nurses. Link: https://bhpr.hrsa.gov/healthworkforce/nursing.htm. 2010 and 2020 projections derived from The Lewin Group analysis of the National Sample Survey of Registered Nurses, 2000.

RN Workforce by Age Group1980 – 2020 (Projected)

Page 13: Lean Six Sigma Practitioners Making the Transition to Healthcare

13

Staffing Issues

• Aging population, increasing demand for healthcare services

• Aging workforce

• Expected staffing shortages (again)• Age generations (e.g. Baby Boomers versus Gen

X versus Gen Y)

• Trying to maintain team parity, when there are huge differences in education and status amongst team members

Page 14: Lean Six Sigma Practitioners Making the Transition to Healthcare

14

Analysis of One StaffingVariable: Education Type

MDDOAHP

120

100

80

60

40

20

0

ProvType

ARRIVE/OUT

Boxplot of ARRIVE/OUT

Project: ANOVA ON PROV TYPE.MTW; 4/14/2009 11:13:58 AM

1129680644832160

0.020

0.015

0.010

0.005

0.000

ARRIVE/OUT

Density

50.29 19.24 6473

45.02 18.77 19693

53.95 20.68 29360

Mean StDev N

AHP

DO

MD

ProvType

Histogram of ARRIVE/OUTNormal

Project: ANOVA ON PROV TYPE.MTW; 4/14/2009 11:10:10 AM

• Box Plot show variation between three provider types: DO (45 minutes), Allied Health Practitioner (50), and MD (54)

• N = 55,000 observations (office visits)• ANOVA P-Value = 0.000• High standard deviation, hence low R-Squared = 4.11%

Page 15: Lean Six Sigma Practitioners Making the Transition to Healthcare

15

Staff Variation as a Constant “Red X”

• ER Throughput – by ER physician

• Radiology Reporting – by radiologist and transcriptionist

• Cath Lab On Time Starts – by cardiologist• Meal Delivery – by meal delivery tech• Lab Use Per Patient – variation by ordering

physician shown to be not really significant, when adjusted for patient factors

Page 16: Lean Six Sigma Practitioners Making the Transition to Healthcare

16

Patients

Page 17: Lean Six Sigma Practitioners Making the Transition to Healthcare

17

Patient Inputs

Socio-economic – probably most profound– Patients presenting to ER’s and hospitals are not

random cross-section of American communities– Poor wealth is highly correlated with poor health– Health care literacy varies significantly

• Literacy: below basic – 14%; basic – 29%• Quantitative: below basic – 22%; basic – 33%

– Language• Non-literate in English – 5%

– Culture Impact - examples: deference to authority; process of dying and death

Page 18: Lean Six Sigma Practitioners Making the Transition to Healthcare

18

Patient Inputs (Con’t)

• The core input to healthcare – the Patient – is an incredibly complex system– Acute presenting problems: about 350 DRG groups– Major chronic conditions

• Significant: kidney, cardiac, pulmonary, others• Aging: neurologic, orthopedic, peripheral vascular

– Multiple medications (10+ is not unusual)– Average age of 64 (excluding deliveries/newborns)

Page 19: Lean Six Sigma Practitioners Making the Transition to Healthcare

19

Patient Inputs (Con’t)

• Risk Factors – the specific factors vary depending on output being measured (mortality, complications, infection, etc.)

• Risk Adjustment methodology is critical factor behind numerous report cards– Usually logistic regressions– Example:

• CMS Mortality and Readmissions• Some registries (e.g. STS for open hearts)• Vendors: HealthGrades, Top 100 Hospitals, US News

Page 20: Lean Six Sigma Practitioners Making the Transition to Healthcare

20

Example: Root Cause Analysisfor Surgical Site Infections

• Were able to measure 11 possible root causes• 3 of 6 statistically significant factors are related to patient

risk factors

Risk Increase

P- Value

1a Pt Condition: diabetes 71% 0.0031b Pt Condition: obesity 155% 0.0001c Pt Condition: smoking 58% 0.0036 Abx Choice (SCIP) 729% 0.0017 Abx Timing (SCIP) None -1.0008 Vagina Prep (Abd Hysters) None -0.3049 Skin Prep Agent Choice (all surg) 36% 0.291

F PACU Care 19b Temp Control (SCIP) None -0.83721c Excessive bleeding - Transfusion 98% 0.00022a Glucose Control (POD #1) 217% 0.04622b Glucose Control (POD #2) None -1.000

PROCESS POSSIBLE ROOT CAUSES

APre-op Patient

Condition

D Short Stay & ORDA

G Post-op Care

E OR

Page 21: Lean Six Sigma Practitioners Making the Transition to Healthcare

21

Community Inputs

All of our communities bring different resources and problems

• If you have watched “Jamie Oliver’s Food Revolution” on ABC, you now know that Huntington, WV is the fattest city, in the fattest state, in the fattest country in the world

• Counties vary greatly by economics, cancer rates, co-morbidities, etc.

• Hospital inputs (patients), therefore also vary widely

Page 22: Lean Six Sigma Practitioners Making the Transition to Healthcare

22

0

50

100

150

200

250

300

Diseases of theHeart

MalignantNeoplasms

CerebrvascularDisease

Chronic LowerRespiratoryDiseases

Diabetes Influenza andPneumonia

HIV Infection

Cause of Death

Dea

ths

per 1

00,0

00 P

opul

atio

n

White

Black

All Persons

Source: National Center for Health Statistics. (2008). Health, United States, 2008 with Chartbook on Trends in the Health of Americans. Hyattsville, MD.(1) Racial categories include individuals of both Hispanic and non-Hispanic origin.

(1)

(1)

Community Inputs:Example: Racial Disparity

Page 23: Lean Six Sigma Practitioners Making the Transition to Healthcare

23

Overweight

Obese

10%

20%

30%

40%

50%

60%

70%

1960-1962 1976-1980 1988-1994 2001-2004 2003-2006

Per

cent

of

Adu

lts A

ges

20-7

4

(2)

Source: National Center for Health Statistics. (2008). Health, United States, 2008 with Chartbook on Trends in the Health of Americans. Hyattsville, MD.(1) Data are age-adjusted to 2000 standard population.(2) Overweight includes obesity.

Community InputsExample: Over Time

Page 24: Lean Six Sigma Practitioners Making the Transition to Healthcare

24

• John Wennberg and others at the Dartmouth Institute for Health Policy and Clinical Practice

• Show widespread variation geographically – Starting in 1970’s and consistently through to today– Based on hospitals, beds, RNs, doctors– Procedures or patient days per capita

• Often called “Dartmouth Atlases”

• Conclusions – variations in use of healthcare is often not associated with variation in value

Community Health CareVariation in Resource Use

Page 25: Lean Six Sigma Practitioners Making the Transition to Healthcare

25

Example of Variation by Procedure

Based on 330 HRR’s (≅ MSSA) which combines all hospitals in that area. Hence true variation is even greater.

Page 26: Lean Six Sigma Practitioners Making the Transition to Healthcare

Fisher E S et al. Ann Intern Med 2003;138:273-287

Increases in Spending Did NotCorrelate with Increases Quality

Page 27: Lean Six Sigma Practitioners Making the Transition to Healthcare

27

Example of Variationin Expenditures

Dartmouth Atlases show variation in health care use in many measures of healthcare utilization

Page 28: Lean Six Sigma Practitioners Making the Transition to Healthcare

28

Health Care Variation andCommunity Norms

• Atul Gawande, “The Cost Conundrum –What a Texas town can teach us about health care”, New Yorker, June 1, 2009.

• Studied McAllen Texas, where Medicare costs are twice the national average at $15,000 per enrollee.– In 1992, it was $4900, about average

• Issues:– Doctors owned hospital and services– Hospital administrators did not know their

costs; don’t know long term outcomes – “It about the culture of money”

Page 29: Lean Six Sigma Practitioners Making the Transition to Healthcare

29

Simplified Healthcare SystemTwo Other Input Variable

MedicalPractitioners(Providers)

Insurers(including

Gov’t)Suppliers

Patients

http://www.pmforum.org/library/papers/2009/PDFs/aug/FP-ShlichterThomas-HealthcarePM.pdf

PharmaceuticalsAnd Devices;

Payments

Premiums

Payments

Care andProcedures

Risk Reduction

Co-pays &Out of pocket

Page 30: Lean Six Sigma Practitioners Making the Transition to Healthcare

30

Healthcare Insurance

• The role of healthcare insurance is fundamental to the healthcare industry

• Originally, consumers desired insurance to reduce risk of huge out of pocket expenses.

• However, insurance distorts the value proposition, so that healthcare is unlike most other consumer purchases (e.g. cars, TVs, gasoline)

Page 31: Lean Six Sigma Practitioners Making the Transition to Healthcare

31

Healthcare InsuranceDistortions

• First, the cost of insurance has now been shifted from individuals to either employers or government

• Second, poor health (and generally higher costs) can be a results of poor genetics and congenital birth defects, bad luck, and poor personal health behaviors

• Third, the small level of co-pays can encourage greater use by consumers. (If someone else paid for 90% of your car purchase, wouldn’t you buy a new car more often?)

• Fourth, maintenance of healthcare has the least insurance coverage, but can dramatically change the long term use and costs of healthcare

Page 32: Lean Six Sigma Practitioners Making the Transition to Healthcare

32

Pharmaceuticals and Device Manufacturers

• Behind the scenes, the pharmaceuticals and device makers have experienced huge growth over the last three decades

• Insurance and economics plays a big role– Consumers don’t foot much

of the bill– Ordering doctors aren’t

accountable

Page 33: Lean Six Sigma Practitioners Making the Transition to Healthcare

33

Supplier Value Proposition

Medical Device Example:• You are 70 years old, and getting a

hip replacement. One model will last 30 years, a second product only 20. Which do you want? How much extra do you pay?

• You are the orthopedic surgeon. Which product do you insist that your hospital carry? What impact does this decision have on your practice?

Consider similar example for two drugs

Page 34: Lean Six Sigma Practitioners Making the Transition to Healthcare

34

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 5, 2010.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data

that are applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.

(2) Expressed in 1980 dollars; adjusted using the overall Consumer Price Index for All Urban Consumers.

Total Prescription Drug Spending1980 – 2008

Page 35: Lean Six Sigma Practitioners Making the Transition to Healthcare

35

Source: Centers for Medicare & Medicaid Services, Office of the Actuary. Data released January 5, 2010.(1) CMS completed a benchmark revision in 2006, introducing changes in methods, definitions and source data

that are applied to the entire time series (back to 1960). For more information on this revision, see http://www.cms.hhs.gov/NationalHealthExpendData/downloads/benchmark.pdf.

Spending for Prescription Drugs1988 – 2008

Page 36: Lean Six Sigma Practitioners Making the Transition to Healthcare

36

Hospital Outputs:Who Are the Real Customers?

OUTPUTS CUSTOMERSPay Checks

Caring GratificationWorkshop

Education/ResidencyProcess Perceptions

Clinical OutputsEducation

Ongoing Care (Rx, PT)"Value"

Change in Health StatusResearch/Knowledge

Community

Employees

Physicians

Patient

Page 37: Lean Six Sigma Practitioners Making the Transition to Healthcare

37

Are Employees Customers?

• The American Hospital Association (and state associations) make great efforts to show the economic impact of hospitals on communities– Often the Hospital is the largest employer in town

• But, the hospital was not created to provide employment, pay checks and benefits– No more than GM and Toyota exist to provide

employment– Ultimately, employee involvement is a side benefit of

quality programs, but again not the reason for these efforts

Page 38: Lean Six Sigma Practitioners Making the Transition to Healthcare

38

The Physicians’ Workshop

• Hospitals in the US were originally “closed” to all physicians except a small “house” staff.

• As of 1873, only about 2% of physicians had hospital privileges. And they could not charge patient fees, since hospitals were completely charity operations

• By 1930, >80% of physicians had hospital privileges, and charging fees was the norm

• Since that time, from the medical (and legal) perspective, hospitals became the physicians’ “workshop”– Efforts by AMA and particularly in some states to require

hospitals to take all qualified medical staff

Page 39: Lean Six Sigma Practitioners Making the Transition to Healthcare

39

So, Are Physicians Customers?

• Where does this idea originate? – Because “doctors bring us our patients”? That makes them a supplier!!

• However, in many processes, the physician is the critical customer.– Example: outpatient radiology results– In many cases, STAT results to the ordering physician for

inpatient care directly impacts patient outcomes– In the first example the physician is an “external” customer, but in

the second they are “internal”

• Ultimately, just as with employees, hospitals are not in place for the benefit of the medical staff– This is surely the intent of Stark anti-referral laws

Page 40: Lean Six Sigma Practitioners Making the Transition to Healthcare

40

Sociology of Physiciansand Health Care Workers

• Professional autonomy has been a long term ideal of organized medicine– As medical residencies in many ways parallel the middle ages’

craftsmen training, physicians practice based on how they were trained, and will defer to another’s different training approach

– “Only doctors can judge other doctors”– This thinking has often been extended to other healthcare

occupations (nursing, therapists, etc.)• Often this is expressed as a cultural resistance to

standardization– “I’ve passed meds this way for 20 years and never had a

medication error”• Likewise, experiential variation predominates –

unfortunately 1 bad case can influence all future care by some clinicians

Page 41: Lean Six Sigma Practitioners Making the Transition to Healthcare

41

Standardization asHistorical Development

• First major attempts were in the 1990’s – Often called practice guidelines or “clinical paths”– Were derided by some as “cook book” medicine, and

taking the “art” out of medicine

• As of 2010, the medical world has changed– “Evidenced based medicine” is ascendant– One of the six core competencies required by the

ACGME (residency accrediting agency) is “systems thinking”

Page 42: Lean Six Sigma Practitioners Making the Transition to Healthcare

42

Control versus Influence

• Many Quality Initiatives hinge on cooperation by physicians

• Though outside of our “control”, they are almost never outside our “influence”

• Make visible their impact– Compute costs of differences– Post variable results

• Probably no more resistant to change than other hospital staff

• Remember WIIFM (What’s In It For Me)

Sphere ofControl

Sphere of Influence

Page 43: Lean Six Sigma Practitioners Making the Transition to Healthcare

43

Is the “Community”a Customer?

• Most hospitals in the country are not-for-profits or local community owned

• Majority of hospitals are also small– 32% < 50 beds– 53% < 100 beds

• “Community” is probably in the name, mission statement, or vision of >50% of all US hospitals

Page 44: Lean Six Sigma Practitioners Making the Transition to Healthcare

44

Communities asCustomers

• Problems with Communities as customers– By legal precedent, we are to serve the needs of each individual

patient– It is hard to measure community health– We are not paid to improve community health

• In many Western countries, Public Health drives healthcare delivery design– This approach has been largely thwarted by medicine, hospitals

and suppliers here in the US

• Increasing legal requirements for not-for-profits to meet community need standards– Health care reform bill require NFP Hospitals to complete a

“Community Needs Assessment” every three years

Page 45: Lean Six Sigma Practitioners Making the Transition to Healthcare

45

The Patient is THE Customer

• Employees are not the customer• Physicians bring in patients, but are not the

customer• The Community as customer is growing• Ultimately, the PATIENT is the customer

– There is definitely a growing recognition, if not a consensus, by healthcare leaders

– There is some competitive factors at play (in some areas, the best quality hospitals will thrive)

– All quality systems (Deming, Six Sigma, TPS) will always come back to this

Page 46: Lean Six Sigma Practitioners Making the Transition to Healthcare

46

Healthcare System SIPOC

SUPPLIERS INPUTS PROCESS OUTPUTS CUSTOMERSTraining Influences Diagnoses Pay Checks

Age Disparity Medical Care Caring GratificationExperiences Other: education Workplace

Individual Differences Other: documentation Education/ResidencyAcute Problems Patient Entry Process Perceptions

Chronic Conditions Registration Clinical OutputsSocio-economics Assessments Education

Other Risk Factors Diagnostics Ongoing Care (Rx, PT)Health Status Discharge, transitions "Value"

Local Health Resources Coding, Billing, AR Change in Health StatusSociety Healthcare "System" Environment: Food Research/Knowledge

Payment Model Service, Engineering Bills InsurersQuality P4P HousekeepingProducts & Payments Suppliers

Pharmaceuticals

Employees

PhysiciansStaff

Communities

Patient

Suppliers

Patients

Insurers

Community

• Consider all suppliers and inputs to your quality projects• Find “wins” for employees, physicians, and the

community, but the Patient is the ultimate customer

Page 47: Lean Six Sigma Practitioners Making the Transition to Healthcare

Part 2Hospital Quality

•Quality History

•Quality Measurement•Quality Regulators & Agencies

•Quality Department Organization

Page 48: Lean Six Sigma Practitioners Making the Transition to Healthcare

48

Quality HistoryMeasurement; Standards

• Florence Nightingale (1854): Military & hospital mortality• Ernest Codman (1910): “End Results Idea”

– Track results in OR. Update status in one year. Publish publicly.

• Avedis Donabedian (1966): Quality Domains• John Wennberg (1983): geographic variation in

healthcare use• Robert Brook and Mark Chassin (Rand Corporation)

(1987): consensus criteria for surgery• Paul Ellwood (1988): “Managed Competition” and

outcomes research

Page 49: Lean Six Sigma Practitioners Making the Transition to Healthcare

49

Quality HistoryTQM; Patient Safety

• TQM/QI/CI Movement: 1989-95– Donald Berwick; Nelson, others– HCA Hospitals: FOCUS-PDCA (Batalden)– Team Handbook, 7 Basic Quality Tools

• Patient Safety: 2000-present– Institute of Medicine (IOM): To Err Is Human (2000); Crossing the

Quality Chasm (2001)– Reason: Human Factors; Swiss Cheese Model– Lucian Leape; Peter Pronovost– Robert Helmreich; J Bryan Sexton – aviation safety– Kaiser Permanente: Lawrence, Leonard - SBAR– VA System: FMEA

• Institute for Healthcare Improvement (IHI) - Berwick

Page 50: Lean Six Sigma Practitioners Making the Transition to Healthcare

Quality HistorySix Sigma; Lean

• Six Sigma in Healthcare– Six Sigma was launched by Commonwealth Health (Bowling

Green, Kentucky) in 1998 and Mount Carmel Health System (in Cincinnati) in 2000.

– Used across many hospitals; no clear epicenters

• Lean in Healthcare– Virginia Mason Medical Center (Seattle) with Gary Kaplan, MD as

CEO was the first to adopt The Toyota Production System in 2001.

– The Pittsburgh Regional Health Initiative began promoting TPS in2001.

– Thedacare (Appleton, WI) started in TPS journey in 2003. Created Thedacare Center for Healthcare Value; collaborating with the Lean Enterprise Institute

Page 51: Lean Six Sigma Practitioners Making the Transition to Healthcare

51

Hospital quality can be measured in three areas:

1. Structure – the resources assembled to deliver care, such as physical equipment and units, staffing, capacity, etc.

2. Process – the ability to deliver a consistent, error-free care process

3. Outcomes – the valued results of care (such as mortality, complication rate)

Avedis Donabedian, 1950

Quality MeasurementTheory

Page 52: Lean Six Sigma Practitioners Making the Transition to Healthcare

52

Care of Heart Attack Patients

Structure Process Outcomes

•Hospital locations•Pre-Hospital Transport•Presence of Cardiac Cath Lab•Presence of Cardiac Care Unit (CCU)•Presence of various cardiology specialists

•Transport time•Time to EKG (diagnosis)•EKG to Cath Lab time•Early aspirin therapy•Smoking and dietary education•Discharge medications

•Mortality rate•6 month mortality•Cath lab complication rate•1 year re-stenosisrate•Patient Satisfaction•Total Charges

Donabedian Model Example

Page 53: Lean Six Sigma Practitioners Making the Transition to Healthcare

53

Comparing OutcomesRisk Adjustment

When comparing outcomes (e.g. mortality rates), there needs to be adjustment for patient differences

• Example earlier of impact of diabetes, smoking and obesity on surgical site infections

• The risk should be accessed prior to the care being compared

• Most common sources:– Clinical record abstraction– Coding: DRG and Diagnosis codes

• Present on Admission Diagnosis coding began in September 2008

– Billing Data: Age and Gender; Insurance; Admission Source

• Risk may be related to a use factor: central line “days”

Page 54: Lean Six Sigma Practitioners Making the Transition to Healthcare

54

Coding and Billing is often substituted for the Medical Record Review which is not equivalent to

the actual patient and care

MedicalRecord

Patient Care

Signs andSymptoms

Diagnostics

Diagnosis

Therapy

Care Results

Billing System•Demographics

•Charges•Outcomes

MedicalRecordsCoding

+≠≠

Surrogates for theClinical Experience

Page 55: Lean Six Sigma Practitioners Making the Transition to Healthcare

55

• The record does not completely describe the patient care experience– Physician, nurses and staff incompletely document– Staff use different language for same clinical conditions

• It’s impractical to Use Medical Record for Summarizing Patient Care– Medical record averages 150 to 200 pages– Possibly Can’t Read Medical Record

• At hospital, medical record is still the key document for reviewing quality of care concerns (e.g. medical staff peer review; sentinel event)

Medical Record Problems

Page 56: Lean Six Sigma Practitioners Making the Transition to Healthcare

Medical Record Coding

PrimaryDiagnosis &Procedure

SecondaryDiagnoses &Procedures

DiagnosisRelated Group

(DRG)+ =

25 Major Diagnostic Categories (MDC’s) Surgical and Medical DRGs746 DRGs in approximately 350 groupings

CC = Co-morbidity or ComplicationMCC = Major Co-morbidity or Complication

Type ICD-9 CodesNon-CC 8,232CC 4,221MCC 1,096Total 13,549

Page 57: Lean Six Sigma Practitioners Making the Transition to Healthcare

57

• Medical Record coding is limited to using physician documentation– Doctor must use specific language to count (↓K ≠ hypokalemia)– Coders not allowed to “diagnose” (Ex. a positive culture plus

physician prescribed antibiotics ≠ Infection, unless stated by physician)

• Codes are combined to create a Diagnostic Related Group (DRG), which has become the “de facto” method for hospital payment– More Complications and Co-morbidities = “higher” DRG = higher

hospital payment– Creates bias to “optimize” (the legal term for over-code)

• Individual coder and hospital quality varies widely

Coding Problems

Page 58: Lean Six Sigma Practitioners Making the Transition to Healthcare

58

Impact of Coding on Average Mortality & Payment

CC = Co-morbidity or Complication; M = Major

• Respiratory Infections: most commonly aspiration, Klebsiella, Staph or Legionella pneumonias

• Pneumonia: generally all other pneumonias

PneumoniaRespiratory Infections Pneumonia

Respiratory Infections

Without CC 0.7% 3.2% 4,896$ 6,961$ With CC 1.5% 3.9% 6,883$ 10,253$ With Major CC 6.3% 13.6% 9,921$ 14,133$ Total 1.5% 8.0% 6,878$ 11,453$

Average Mortality Reimbursement

Page 59: Lean Six Sigma Practitioners Making the Transition to Healthcare

59

Registries as AlternativesFor Quality Measurement

• Registries have developed that are designed to resolve some of the problems of coding

• Most are focused on a specific subset of care (open heart surgery, NICU, etc.)

• They require abstraction of specific information from the medical record that are more germane to measuring quality (in their domain) and adjusting for risk

• Often proprietary; rarely in the public domain

Page 60: Lean Six Sigma Practitioners Making the Transition to Healthcare

Mandatory

1. Atlas →PHC4 (State Outcomes)

2. CMS Core Measures (Inpatient and Outpt)

3. Joint Commission Core

4. CMS Carotid Stent

5. ACC-NCDR – Cath Lab

6. ACC-NCDR/CMS - ICD

7. STS – Open Heart

8. GTWG – Stroke

Voluntary1. CMS/Premier HQID

2. Door-to-Balloon Alliance

3. Vermont-Oxford –NICU

4. NDNQI – Nursing

5. Project Impact –Critical Care

6. PQRI-Physician Office

7. Blue Cross P4P

8. UPMC Healthcare P4P

Registries at Saint Vincent

Page 61: Lean Six Sigma Practitioners Making the Transition to Healthcare

61

CMS Public Reporting

• Core Measures (Process): AMI, CHF, PN, SCIP, Outpatient SCIP– Coming: VTE, Stroke, Open Heart (STS),

• Outcome Measures: (Risk Adjusted)– Mortality Rates: AMI, CHF, PN– Readmission Rates: AMI, CHF, PN– Coming: Nursing Care (NDNQI), Patient Safety events (HACs)– Possibly: AHRQ PSI and IQI metrics

• Patient Perceptions: HCAHPS Survey• FY2011?: ER Throughput Times, Infections, COPD,

Diabetes, Cancer (ACOS)• Value Based Purchasing: Formula for providing bonus or

penalty payments based on quality

Page 62: Lean Six Sigma Practitioners Making the Transition to Healthcare

62

Proprietary PublicQuality Rating Systems

• Although CMS measures are substantial (and growing), CMS does no aggregation, and hence it is hard to make value judgments

• Numerous agencies and private enterprises have taken national data, plus added their own information, to create hospital comparative ratings.– HealthGrades– Thomson Reuters 100 Top Hospitals– US News and World Reports– Others: Subimo, Delta Group CareChex, Consumer Reports

• Hospitals must pay in order to market the ratings

Page 63: Lean Six Sigma Practitioners Making the Transition to Healthcare

63

CMS as Regulator

• Regulation– Conditions of Participation (COPs) – rules all hospitals

have to follow• More prescriptive and arcane than Joint Commission• Hot Buttons: restraints, patient complaints/grievances

– Typically CMS pays state DOH’s to do surveys on non-accredited hospitals

• Fraud and Abuse – CMS has a whole other system. See your corporate compliance officer. OIG uses multiple methods:– Recovery Audit Contractors (RACs)– Anti-referral (Stark Law) compliance– Etc., etc.

Page 64: Lean Six Sigma Practitioners Making the Transition to Healthcare

64

State Licensing

State Department of Health (DOH)• Issue state regulations • Provides license• Survey hospitals (frequency depends on state)• Survey on behalf of CMS• Manage patient complaints• Administer other functions: CON• May manage data reporting (may be separate

agency) – patient safety, infection control, outcomes (mortality)

Page 65: Lean Six Sigma Practitioners Making the Transition to Healthcare

65

• 1910: Ernest Codman – Proposes “end results system of hospital standardization”

• 1917: American College of Surgeons (ACS) develops the Minimum Standards for Hospitals

• 1918: Only 89 of 692 hospitals pass their first survey• 1951: ACS, American College of Physicians, the AMA

and the AHA create the Joint Commission on Accreditation of Hospitals (JCAH) with primary purpose is to provide voluntary accreditation

• 1965: Medicare – Hospitals accredited by JCAH or the AOA are “deemed” to be in compliance with the Medical Conditions of Participation (COPs)

The Joint CommissionHistory

Page 66: Lean Six Sigma Practitioners Making the Transition to Healthcare

66

• 1986-2007: The Joint Commission under Dr. Dennis O’Leary dramatically increased scope adding a for-profit consulting arm, an international division and expanding into many sectors of healthcare– 1987: Accreditation extends beyond hospitals. Name change to

Joint Commission for Accreditation of Healthcare Organizations (JCAHO)

• 1997: Beginning of reporting “Core” measures• 2002: Survey process moves to patient tracers versus

previous department “white glove” reviews• 2007: Lost automatic deeming; had to re-apply to CMS• 2007: Changes name to “Joint Commission”• 2008: New president: Mark Chassin, MD

The Joint CommissionHistory (Continued)

Page 67: Lean Six Sigma Practitioners Making the Transition to Healthcare

67

Joint Commission

• Hospital Accreditation– Voluntary– Provides “deemed” status with CMS – Surveys to a higher standard (“Gold Standard” for

hospitals)

• Disease Certification – Stroke, CHF, CKD, VAD, etc.– Ensures quality of program– Marketing value

Page 68: Lean Six Sigma Practitioners Making the Transition to Healthcare

68

1. Hospital Manual: Prescriptive Standards• 18 Chapters; 286 Standards; 1500 Elements of

Performance

2. Periodic Performance Review (PPR): Annual Self Assessment of all 1500 EP’s

3. Hospital Survey– Unannounced Survey – 18 to 39 months– Issue “Requirements For Improvement” (RFI’s) that

require “Evidence of Standards Compliance” (ESC) that may need “Measurement of Success” (MOS)

4. Require submission of “Core Measures”

Joint Commission Program

Page 69: Lean Six Sigma Practitioners Making the Transition to Healthcare

Typical HospitalQuality Functions

Department RolesQuality Compliance JCAHO, State DOH and CMS regulatory complianceQuality Informatics Electronic data collection; chart abstraction; data

management, analysisMedical Staff Quality

Support peer review; complication and outcome tracking (OPPE for JCAHO)

Nursing Quality Regulatory compliance; nursing measuresInfection Control Surveillance and reductions of infectionsPatient Safety Reduce incidents (falls, med errors) and sentinel

eventsCase Management Management of high intensive patients; real time EBP

complianceUtilization Mgmt Facilitate insurer payments; reduce excessive LOSSatisfaction Manage patient satisfaction collection and improveLean Six Sigma Train in Lean, Six Sigma or PI. Mentor projects. Lead

QI projects.

Page 70: Lean Six Sigma Practitioners Making the Transition to Healthcare

FTEs: 5.0 11.5 19.5 (exc. SW) 4.0 2.0 1.0

Total of 43 FTE’s

• Medical Staff Quality

• JCAHO Readiness

• Outside Agency Liaison

• Lean Six-Sigma Deployment

• Case Management

• Utilization Management

• Discharge Planning/ Social Work

• Data capture, abstraction, entry

• Data analysis• Database

administration

• IT/EMR Integration Liaison

• Patient Safety

• Infection Control

• DOH Compliance

Saint Vincent Coordinated“Quality Department”

CEO

CQO CNO

VP, Quality Compliance & Improvement

DirectorQuality Informatics

DirectorCare Coordination

Director/PSOPatient Safety &Infection Control

Senior VPMarketing

DirectorPatient Relations

Senior VPHR

DirectorOrg Development

& Educ Svcs

CMO

• Patient Satisfaction

• Patient Relations

• Complaints & Grievance

• Leadership Training

• PI Training

• Staff Education

Page 71: Lean Six Sigma Practitioners Making the Transition to Healthcare

Part 3Implications for Lean Six Sigma

Practitioners

Page 72: Lean Six Sigma Practitioners Making the Transition to Healthcare

72

Saint Vincent’s LSS Program:Deployment Summary

• FY07: 12 hours of LSS training for all leaders• FY07 and FY08: Departments selected “LSS” projects. Internal

black belts available for consultation. Project quality varied great• FY09: Department LSS projects done through PDSA class format• FY09-10: Stopped Green Belt class; shift to Black Belt projects

DeplymtYear Fiscal

Black Belt

Green Belt

Dept LSS Comment

0 FY05 RFI; Hire Consultant1 FY06 4 Hired 2 Black Belts2 FY07 14 42 Consultant GB Course3 FY08 10 16 Internal GB Course4 FY09 8 10 PDSA Class5 FY10 11 Patient Flow Focus

Projects Started

Page 73: Lean Six Sigma Practitioners Making the Transition to Healthcare

73

Lean Six Sigma Project Results

LSS Projects: FY06 to FY09

58%

20% 23%

0%10%20%30%40%50%60%70%

Met Goal Some Impmt Not Started orLittle Impmt

104 projects started. 8 closed at baseline. 4 still open.Total of 92 projects with results.

Page 74: Lean Six Sigma Practitioners Making the Transition to Healthcare

74

Saint Vincent’s LSS Program:ROI Results

• Project returns tracked for 3 years, starting with Control Phase• Hard returns at 2 to 3 times LSS costs in last two ½ years• Community benefits significant ($880,000 of $2.8 million total)

-$50,000

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Q1

FY

06

Q3

FY

06

Q1

FY

07

Q3

FY

07

Q1

FY

08

Q3

FY

08

Q1

FY

09

Q3

FY

09

Q1

FY

10

Hard Soft Actual Exp Comm Savings

Page 75: Lean Six Sigma Practitioners Making the Transition to Healthcare

75

Self AssessmentEntering FY11

• Quality is really still only Project Based

• Lack of embedding quality culture; no Continuous Improvement mentality

• No real daily “quality management” system• Standardization is building block of both Lean

and Six Sigma, and we don’t teach this well

• Students want short courses in half-day format

Page 76: Lean Six Sigma Practitioners Making the Transition to Healthcare

76SVHS: Mission, Vision, Values, Strategic Plan

STANDARDIZATION

PROCESSFLOW

PROBLEMSOLVING

CONTINUOUS IMPROVEMENT: Pursuing Perfection

HumanCentered

Work

EXCELLENCE IN HEALTHCAREQuality, Satisfaction, Value

VOICE OF THECUSTOMER

Our “House of Quality”

Page 77: Lean Six Sigma Practitioners Making the Transition to Healthcare

77

Developing Course Curriculum

• E-Learning Modules (90 Minutes)– Voice of the Customer– Change Management

• Seminars in two half-day format with project work– Standardization (including Audits, rounding, visual

metrics; role of middle and senior managers)– Flow (VSMs, Spaghetti Charts, Level Loading)– Problem Solving (using PDSA/A3)

Page 78: Lean Six Sigma Practitioners Making the Transition to Healthcare

78

Healthcare Six Sigma Book of Knowledge

• Generally not Relevant to Healthcare:– Full Gage R&R (possibly a Gage R)– Sub-group sampling: R charts– Capacity Analysis with Bilateral Specifications

• Hence no need for CpK, PpK; nor Short term vs. Long term issues

– DOE

• This is 70% of the content that separates Six Sigma from traditional TQM– Therefore, I think there should be a completely

different BoK and curriculum for healthcare

X

Page 79: Lean Six Sigma Practitioners Making the Transition to Healthcare

79

Healthcare Lean Book of Knowledge

• Problems with Lean in Healthcare– ER and Inpatient care is closer to a custom

engineering firm, than a mass-producer– Inventory focus, SMED, TPM– Fixation on Toyota roots; Japanese terminology– Failure to appreciate existing quality methods

• What Healthcare Needs from TPS/Lean– Management roles (they view quality like accounting

or supply chain or any other non-core function)– CI fixation; Culture

Page 80: Lean Six Sigma Practitioners Making the Transition to Healthcare

80

LSS Book of Knowledge: Key Areas

• Process mapping, swim lanes, value stream mapping

• Demand versus Capacity of services (e.g. ER, registration, nursing)

• Statistics: t-test; Chi-Square; ANOVA• Taguchi/Robust Process Design

• Regression Analysis– Control for noise variables– Logistic regression to model mortality & infections

Page 81: Lean Six Sigma Practitioners Making the Transition to Healthcare

81

Basic Quality Model

The basic quality model suggests that variation in Inputs or the Process will result in variation in the Outputs

INPUT PROCESS OUTPUT

Page 82: Lean Six Sigma Practitioners Making the Transition to Healthcare

82

Taguchi Model

In the Taguchi model, the noise factors are Input Variables that also influence the output, but are considered to be nonnon--controllablecontrollable

SIGNAL(Controlled)

PROCESS OUTPUT

NOISEFACTORS

Page 83: Lean Six Sigma Practitioners Making the Transition to Healthcare

83

Noise Factors andRobust Process Design

• Many factors in healthcare are not controllable (in the short run) by the process owners– Patient variation– Community variation

• Taguchi suggests designing processes to work across a wide range of inputs in the non-controllable (or noise) factors– For example, our patient medication reconciliation

should work regardless of the patient’s age, language, economic status, admission source, etc.

Page 84: Lean Six Sigma Practitioners Making the Transition to Healthcare

84

Case Study: Lab Use/PatientRoot Cause Hypotheses

Cause Class Importance Measurable

1 LOS Very High Yes2 DRG High Yes3 Co-Morbidities Low Yes4 Hospitalist (Y/N) Very High Yes5 Attending Service Medium Yes6 Attending Name Low Yes7 Admit Thru ER High Yes8 Hospital Transfer Low Yes9 Critical Care Days Low Yes

10 Legal Environment Low No11 Regulatory Requirements Low No

Environment

POSSIBLE ROOT CAUSES

Manpower

Patient("Material")

Pt Flow("Process")

Page 85: Lean Six Sigma Practitioners Making the Transition to Healthcare

85

Case Study: Lab Use/Pt DayVariation by Discharging Doctor

901181

701011

651083

611160

504126

504092

501247

445312

445288

445270

445254

445148

441238

441121

392670

391748

311233

311217

33779

31179

31161

31062

31047

31013

13920

13086

11361

11346

11262

11171

40

30

20

10

0

Attend Phys

Tests Per DayBoxplot of Tests Per Day

Project: Untitled; 4/9/2010 4:19:22 PM

ANOVA: P-Value = 0.000; R-Sq = 27.3%

Page 86: Lean Six Sigma Practitioners Making the Transition to Healthcare

86

Case Study: Lab UseSingle Variable Results

Cause Class ControllableSingle

Factor R Sq1 LOS No 39.1%2 DRG No 39.3%3 Co-Morbidities No 43.1%7 Admit Thru ER No 0.2%8 Hospital Transfer No 0.6%9 Critical Care Days No 13.2%4 Hospitalist (Y/N) Yes 0.8%5 Attending Service Yes 9.8%6 Attending Doctor (Name) Yes 27.3%

Pt Flow("Process")

POSSIBLE ROOT CAUSES

Manpower

Patient("Material")

Results using ANOVA or T-Test singly

Page 87: Lean Six Sigma Practitioners Making the Transition to Healthcare

87

Case Study: Lab UseRegression Results

• Best Multiple Regression: DRG, LOS, Critical Care Days, 5 secondary codes (all factors P-Value = 0.000)– Adj R-Sq = 65.6%– These” noise” factors are non-controllable by the LSS

Team

• Add Attending Physician to above Regression:– Adj R-Sq = 68.1%– Physician adds 2.5% to model predictiveness– Is this a significant factor to pursue as a “Red X”?

Page 88: Lean Six Sigma Practitioners Making the Transition to Healthcare

LSS: Ongoing JourneyNot a Destination

• Healthcare is a very diverse business, with enumerable system complexities

• It is hard to measure quality in healthcare• There is probably no other industry in so

much need for improvements in quality as is healthcare

• Traditional Six Sigma or Lean does not translate well to healthcare

• Deployment will vary depending on willingness to tackle culture early versus showing “wins” from improvement

• Have patience and enjoy the journey

Page 89: Lean Six Sigma Practitioners Making the Transition to Healthcare

89

Questions