Tuesday, November 1, 2011

Saving Money Saving Lives

The case discusses the impact of introducing the balance score card in the organisations and measuring the overall effectiveness on the overall performance of an Organisation

Balanced Score Card
The case discusses the Duke children's Hospital located in Durham, North Carolina.By using effective administration, it turned the company's fortune from an annual loss of $11million to gain of $ 4million.

Problems in the Hospital

1. Increasing costs are putting strain on the services.
2.Operating Loss
3. Services are continuously deteriorating
4. Retention
5. Increasing costs to consumers and insurance companies
6. Being a child hospital, it becomes very important to offer extra care to children.

 Steps taken:-

1. Reinstall its mission- No margin No mission
2. Balanced Score Card

 From Customer Side

1. Move from individual to group based approach
2. No waiting times and early discharge of patients
3. Patient satisfaction increases by 8%
4. Patient's treatment history and cost of each article is reported
5. Patient care guide for parents to discuss what would happen on daily basis to child.- Nurse and physician

From Financial Side

1. By fllowing good practices,people are able to move quickly to hospitals and reduce the costs by 28%
2,. Cost per case reduces by 12%
3. Various data points are measured such as no. of patients treated, released and cost per patient. and analyse these data point to check for Outliers
4. Reduce the load factor( 1:2, 1:5=> 1:3) so that there is smooth transition from  ICU to pediatric

From Internal Business Side

1. Develop protocols to refine the process. Setting the practices to make nurse to remove patient from respirator without using a therapist.
2. Making customers part of entire process by teaching them early how to feed and reduce the waiting time
3. Uniform in the business process so that thare is symmetry.
4. Customized Scoreboard for each case
5. People waiting for surgery can be accomodated at cheaper hotels and thus save money.
6. Creation of Measurement system for each score card.

 From Learning and Growth Side
  • Persuasion,persistence and reassurance to encourage customers to buy into the process
  • Launched a pilot project - Surgeons
  • Worktogether to disccuss cases of most difficult patients
  • Sharing of best practices among all the unit
  • IT department for cost accounting and maintaining the database.
  • Started newsletter "Practicing smarter" and bulletin board to share best practices
  • Making each employee as a partner