How can Constraint Management benefit Hospitals?
Constraint Management (CM) deals with the recognition that every system has at least one constraint. This constraint effectively limits the system in its ability to perform. Manage the constraint correctly and the system will be able to operate at its maximum potential. Constraint Management's cross-functional focus is on the entire process instead of individual departmental viewpoints.
 Patient Satisfaction
When a patient is ill, any delay in their testing and treatment becomes personally intolerable. Just by eliminating these types of delays, the patient can be discharged sooner as is evidenced by lower average Length of Stay (LOS) measures - and the patient's overall satisfaction is increased.
Throughput vs. Cost Control
When a system operates at its highest potential, it generates the highest throughput which translates into increased revenue. Cost Control efforts alone may result in savings that flow to the bottom line. However, many times these same cost control efforts actually create additional limitations within the system that negatively impacts throughput - and, accordingly, lowers revenues.
Financial Leverage
Hospitals are limited in their number of beds. At high occupancy rates, a hospital that has efficient patient processes can treat more patients and earn higher overall revenues. Yet higher occupancy rates typically translate into lower operating efficiencies. By establishing systems that maintain efficiencies under these conditions, hospitals can generate substantially higher operating margins as the large base of fixed costs are spread over more patients. The financial leverage that results from activities that improve patient throughput dramatically outweighs focusing on cost control efforts alone! |
