Lean Healthcare Concepts for Process Improvement Rick Murrow

Healthcare Business Academy Fellows (September 30, 2016)

Copyright, 2016 Air Academy Associates Thank You

• Thank you to Linda Becker and the Healthcare Business Academy for this opportunity

• Air Academy Associates has partnered with NorthStar Network and the Healthcare Business Academy for a number of years

• This provides an opportunity to share proven techniques and methods we’ve used to strengthen various private and public healthcare systems . Thanks to each of you as Fellows in this learning process for your participation

Copyright, 2016 ̶ 2 ̶ COURSE INFORMATION

• Materials • Cell phones • Stop time • Breaks • Active participation – questions are good/ discussion is great/involvement is wonderful

Copyright, 2016 ̶ 3 ̶ EXPECTATIONS

• Expectations?

Copyright, 2016 ̶ 4 ̶ CONCEPTS for LEADERS Agenda

• Strategic View • Strategic Drilldown • Planning Model • Lean • Lean Principles • Value Stream • 8 Wastes • Value Stream Mapping • Input-Process-Output • Measurements • Variation and • Efficiency • DMAIC Methodology • Improvement Tools • PF/IPO/SOP • Standard Work • Visual Management • 5S • Huddle Meetings

Copyright, 2016 ̶ 5 ̶ CONCEPTS for LEADERS Agenda

• Tools (cont.) • Projects • DMAIC • Rapid Process Improvement Events • Change Management • Successful Change • Leader Standard Work • Roadmap • Summary • Appendices • Appendix A – Process Improvement Questions • Appendix B – Project Tollgates

Copyright, 2016 ̶ 6 ̶ IF THERE IS A NEED … Leaders, Society, Customers, Business Motivation Creates the Vision

One of the main ways the Affordable Care Act seeks to reduce health care costs is by encouraging doctors, hospitals and other health care providers to form networks that coordinate patient care and become eligible for bonuses when they deliver that care more efficiently.

The law takes a carrot-and-stick approach by encouraging the formation of accountable care organizations (ACOs). Providers make more if they keep their patients healthy.

Accountable Care Act

Copyright, 2016 ̶ 7 ̶ LEADERS SET GOALS – ACO Goals

Copyright, 2016 ̶ 8 ̶ WHERE DO YOU FIT IN THE HEALTHCARE SYSTEM? Not Always Clear – Can assume Multiple Roles

• Patient or other end user of a HC product/service? • Patient advocate? • Direct Service Provider: • Physician / Nurse • Medical Center Staff • Medical Officers • Pharmacist • Care provider • In-direct Service Provider: • Health Insurance Providers • Provider of Supplies, Drugs, Facilities, Equipment? • Government Entity • Society / Community • Shareholders

Copyright, 2016 ̶ 9 ̶ SELF-ASSESSMENT Reality Check

• What are you doing to support improvement in healthcare quality, cost, patient safety, access, and delivery?

• What measurements are you currently tracking?

• What are your top 3 issues?

Copyright, 2016 ̶ 10 ̶ SELF-ASSESSMENT (cont.) Reality Check

• What have you done in the last 6 months to address the issues?

• Is there a need to improve?

• What is your vision of the future?

• What is your plan to get there?

Copyright, 2016 ̶ 11 ̶ A STRATEGIC PLANNING MODEL Improvement Efforts Should Link “Planning the Healthcare Voice of HealthcareStrategic Business Academy – Leadership Model Customer System” 1. LeadershipPlan and Culture 2. Customer / Patient Focus System • Patient/ 3. VisionBusiness and Strategy Scorecard Customer Objectives • Financial 4. Innovation and Improvement UCL Business Unit • Internal 4a. Information Technology and Management Business Business Avg Scorecard Measures Process 5. Process Management LCL • Workforce 6. Workforce Focus 7. Results Value Stream

“Running the Tools & Process Flow Healthcare Metho