U.S. hospitals are in for a transformative awakening. They are facing the most sweeping change to health care since Medicare was enacted in the 1960s. The Patient Protection Act recently signed into law, fundamentally alters the healthcare landscape for all hospitals and medical care facilities. Demand for services will increase astronomically, as 30 to 40 million individuals become insured, this demand will spike in 2013 and 2014.
Improving throughput in hospitals and medical care facilities will become a challenge, calling for improving process efficiency and labor productivity, at a time when most hospitals are already at their capacity limits. Experts predict that the Emergency Rooms will be the hardest hit, where non-critical wait times may be as long as four hours. Improving productivity will have even more meaning with the predicted shortfalls in nurses and doctors.
Pricing pressures from insurance providers, plus new rules from Medicare and Medicaid are threatening the financial viability of for profit and non-profit healthcare institutions. The cost of poor quality will now have to be absorbed by the hospitals.
Although the Patient Protection Act doesn’t become fully effective until 2013 now is the time for hospitals and other healthcare providers to start implementing changes in the way they do business. Hospitals must transform the care delivery system and create a new model free of non-value-added steps, and provide high quality care to the patient.
The Need for Change
The need for change in healthcare has never been more apparent than it is today. Healthcare is by far the largest industry in the United States. It is on the edge of astronomical growth as baby boomers reach their sixties and the impact of the recently enacted Patient Protection Act. The demand for new physicians will continue to grow even more rapidly than the supply of practicing physicians. The Council on Graduate Education predicts that the nation is likely to experience a shortage of 85,000 to 96,000 doctors by 2020. The health Resources and Services Administration predicts that the national nursing shortage will exceed 800,000 by 2020. Hospitals must take action and learn to do more with less. Lean process Improvement has the very real potential to update the care delivery process to one that flows, mistake free, and delivers value from the standpoint of the patient/customer. There is, however no time to waste. The time for action is now.
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