Robert A. McDonald, Veterans Secretary and head of the department of Veterans Affairs, recently announced his plans to improve the VA’s approach to healthcare. At a National Press Club gathering in early November, McDonald explained his strategy – to implement Lean Six Sigma business practices in an effort to optimize the rate at which the VA can treat veterans, as well as boost the overall quality of the treatments and services.
McDonald isn’t the first healthcare official to apply proven business practices to the healthcare industry, and he’s approaching the implementation quickly and efficiently. VA leaders began training on the business methodology as early as October, and McDonald hopes to have 10% of target candidates trained and prepared by the end of 2016.
Why Lean Six Sigma?
Back in 2009, President Obama proposed a healthcare reform that would require each of the country’s 5,700 hospitals to cut, on average, $2.6 million a year in costs over 10 years. Many of those hospitals are already operating at a loss, so salvaging any costs generally will require significant planning and a focus on efficiency.
Enter Lean Six Sigma. Healthcare organizations have been exponentially adopting the business methodology over the last five years in efforts to improve efficiencies, reduce waste, decrease errors, prevent disease and generate additional savings. Lean Six Sigma could potentially save billions each year, all while providing improved patient care.
Those are the results that have inspired McDonald, former president of Procter & Gamble, to implement Lean Six Sigma into the VA. McDonald said he’s a strong advocate of the principles of Lean Six Sigma, and he’s planning on blending the approach with other business practices to improve efficiency, cut down on waste and set a new standard to treat more veterans who require specialty care, primary care and mental health care.
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Initial Results
McDonald was appointed to the head of the Department of Veterans Affairs in the summer of 2014. So far, with the addition of 15,000 new employees across the country, the VA has significantly reduced the wait time for medical appointments. Through June of 2015, a little less than one year after his appointment, McDonald’s business strategies have helped the VA complete 7 million more medical appointments than it had in the year prior to his arrival.
Claims are also being processed faster. Most appointments now occur within seven days of processing a claim, and 97% occur within 30 days. With new employees being trained on Lean Six Sigma practices, those numbers are likely to improve.
Healthcare Professionals and Lean Six Sigma
With so many healthcare organizations emphasizing efficient workflows and reduced waste, a Six Sigma certification can really make a difference in a healthcare professional’s career. Those who are certified can develop efficiency, distinguish themselves from other professionals and potentially increase job security. According to the Six Sigma Academy, professionals with the Black Belt certification save companies approximately $230,000 per project.
The healthcare industry is looking to improve processes and establish best practices. Qualified Six Sigma practitioners can help give organizations like the VA a head start on those goals.
