7 Ways to Reduce Waste In Your Community Health Center

Blog

Back to overview

Posted:08/1/17 2:17 PM

Author: Concordance Healthcare Solutions

According to this Harvard Business School report, as much as 35% of healthcare spending is wasted in inefficient practices, excessive pricing and inappropriate treatments. These shocking figures have prompted many healthcare facilities, including community health centers, to adopt the lean management principles that have been so effective in the automobile industry to identify and eliminate waste. Toyota, the originator of lean manufacturing, isolated seven methods of reducing waste.

1. Transport

This can be explained as the movement of patients, equipment and medical supplies from one place to another. This takes time and costs money, but there is no direct benefit to the patient or health center. Eliminating excess transportation reduces nonproductive costs.

2. Inventory

Medical inventories are expensive because they tie up cash and take up valuable space that could be utilized more effectively. Another problem with excess inventory is that it exacerbates the problem of managing expiry dates, which means that medicines may end up being purchased and then thrown away.

3. Motion

Unnecessary motion takes effort and time. This includes excessive walking between workstations, having to fetch supplies and the use of equipment that requires high degrees of effort and movement. These detract from the time medical staff has to care for and treat patients. Although this may seem a bit like nit picking, the cumulative time lost by excessive motion is significant.

4. Waiting

A characteristic of many community health centers is the need to wait. While this is usually viewed as a necessary evil, the accumulative costs to the economy are staggering. The same applies when medical staff have to wait to speak to someone, linger to receive a report or pause during work to get medications from the dispensary.

5. Over-Processing

Over-processing is when inapplicable processes are used to perform a task. From a medical perspective, this includes ordering expensive tests, procedures and assessments when they are not clinically indicated. It also includes sending a patient for a scan or X-ray when a simpler diagnostic method is as effective.

6. Overproduction

While similar to over-processing, overproduction is defined as doing more than is needed. For example, it could apply to screening practices that may be of limited benefit to certain categories of patients. It would also include ordering too many micro panels, just in case, rather than the number actually needed.

7. Defects

The cost of rectifying something that goes wrong is always much higher than preventing the defect in the first place. This would include medication or documentation errors that have to be rectified as well as administrative errors and poor quality work. Correcting defects wastes clinical resources and increase costs.

These lean management techniques appear to be deceptively simple, yet it was adherence to these seven principles that enabled the Japanese motor industry to catch up with, and overtake, the American automobile giants. It may be time to apply them to containing costs in your community health center.

Concordance Healthcare Solutions can help, contact us to find out how.

Helping you stay in the know

Facebook Twitter LinkedIn

You might also be interested in

Blog

Value-Based Care for Your Community Health Center

12/28/17

by Concordance Healthcare Solutions

The introduction of value-based care brings many challenges. While the concept is inherently sound and in many ways overdue, the switch from volume- or service-based remuneration to value- or outcome-based reimbursement is far from simple. This is particularly true for community health centers (CHCs) that operate in Medicaid expansion states and...

Blog

Concordance Provides Clean Water for Those in Need

08/1/18

by Concordance Healthcare Solutions

Concordance Healthcare Solutions prides itself on delivering service beyond expectations, to our customers and to those in need. As a member of the healthcare industry, we strive to make a positive impact on local and global health issues. Earlier this year, Concordance partnered with the Water Works Program for a team building activity that...

Blog

Concordance Voices: Supporting Community Health Centers

08/7/19

by Concordance Healthcare Solutions

Community HealthCenters (CHCs) serve as a comprehensive and cost effective healthcare option, providing primary care to patients in underserved communities. The patient-centered approach of these organizations focuses on offering unique support and services for agricultural workers, the homeless, children and women. Driven by consumer demand,...