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
Paper type
Paper format APA
Course level Master
Subject Area Nursing
pages 1
Spacing Double Spacing
sources 2
Paper Details
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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