Friday, February 19, 2016

Six Sigma program

Title: The goal of the Six Sigma program is to achieve a level of quality that is as close to perfection as possible. Sigma is actually a statistical term used to gauge how far a process deviates from perfection. Explain how the disciplines within Six Sigma can i

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Paper format APA
Course level Master
Subject Area Nursing
pages 1  
Spacing Double Spacing
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Paper Details

The goal of the Six Sigma program is to achieve a level of quality that is as close to perfection as possible. Sigma is actually a statistical term used to gauge how far a process deviates from perfection. Explain how the disciplines within Six Sigma can improve hospital efficiency and hospital profitability?

Answer




The Application of Six Sigma Program to Improve Efficiency and Profitability in a Hospital
The Application of Six Sigma Program to Improve Efficiency and Profitability in a Hospital
According to Smith (2003) Six Sigma program can be used to review medical records to establish the degree of services offered, justify the diagnosis and procedure coding and determine whether the projected reimbursement amount was obtained. Essentially, these processes are necessary in a hospital setting to assist in detecting deficiencies in its operations. As such, Six Sigma program can be applied in auditing to examine the hospital revenue cycle. Apparently, it is used to appraise the capacity of a process to provide flaw free service for customer satisfaction. Thus it would help in identifying and resolving problems within hospital processes to improve efficiency and eliminate inappropriate costs that could reduce hospital profitability. Variations in the billing process of a hospital could be catastrophic as they could lead to loss of revenue and reduced profitability. However, Six Sigma program reduces variability sources that could affect the hospital billing process (Lloyd & Holsenback, 2006) as such improving the hospital profitability respectively.
Efficient management of medical services is an important factor in enhancing profitability and customer satisfaction. Arguably, Six Sigma concept is used in designing hospital processes, improving and tracking different hospital activities to eliminate wastage through Total Quality Management and Continuous Quality Improvement (Lloyd & Holsenback, 2006). Work environments evolve continuously affecting crucial processes. Six Sigma program helps in setting controls that ensure the hospital processes do not revert to defects previously witnessed. It provides effective documentation of a process specification, modifications and data from continuous monitoring (Smith, 2003). Therefore, proper utilization of the Six Sigma tool would enhance productivity; improve cash flows and overall financial stability in the hospital. These parameters are achievable through appropriate reimbursements and effective revenue cycle process obtained through the Six Sigma management program. Thus, the Six Sigma concept is a key concept in improving hospital efficiency and profitability.
References
Lloyd, D. H. & Holsenback, J. E. (2006) The Use of Six Sigma in Health Care Operations: Application and Opportunity. AHCMJ, Vol. 2
Smith, J. (2003) Six Sigma: A New Consideration for Improving Revenue Cycle Output. Health Care Biller Vol. 12, (5)



 

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