1. Value Stream Management for Lean Healthcare ISE 491 Fall 2009 Process Improvement in Healthcare

2. Fall 2009ISE 491 Dr. Burtner Lecture 1 Slide 2 The Healthcare Crisis – Costs 1 US healthcare costs are extremely high Medical tourism is a threat to U.S. system  Bone – marrow transplant  $2.5 million in US  $26,000 in India Healthcare costs are increasing at double-digit rates each year Healthcare costs are being transferred to the consumer (patient)  New mothers are sent home within 24 hours of giving birth

3. Fall 2009ISE 491 Dr. Burtner Lecture 1 Slide 3 The Healthcare Crisis – Costs 2 Insurances (Private and Government) Facility overhead  Majority of hospitals 20-30 years old Malpractice premiums Competitive healthcare  Hospitals compete for staff  Hospitals compete for patients Infrastructure changes (supporting information required by insurance/government) Decreased funding Rapidly changing technology requirements

4. Fall 2009ISE 491 Dr. Burtner Lecture 1 Slide 4 The Healthcare Crisis – Staffing Nurses are responsible for direct patient care Nurses must provide more and more documentation Nurses asked to provide more with less Nurses leaving traditional healthcare for related positions (home health, sales, teaching) New qualified nurses must be found

5. Fall 2009ISE 491 Dr. Burtner Lecture 1 Slide 5 The Healthcare Crisis – Boomers Baby-boomers will require an increase in services throughout the healthcare continuum Benefits per retiree will accelerate more quickly than the taxpaying workforce that supports retiree benefits Inadequate savings may result in less money for healthcare

6. Fall 2009ISE 491 Dr. Burtner Lecture 1 Slide 6 The Healthcare Crisis - Funding Emergency Medical Treatment and Active Labor Act (EMTALA)  Requires hospitals and ambulances to provide care to anyone needing emergency treatment regardless of citizenship, legal status, or ability to pay  Does not provide for reimbursement Decreasing funding from federal, state, and local agencies

7. Fall 2009ISE 491 Dr. Burtner Lecture 1 Slide 7 Response to the Healthcare Crisis The healthcare industry is becoming more motivated to  Improve patient satisfaction  Improve patient care  Improve job satisfaction for healthcare workers  Reduce costs There is an increasing recognition of the value of creating more efficient patient and non-patient care processes by reducing waste.