Business Process Reengineering in Health Care IT

Types of BPRProject Management Implications

Examples from the Field

04/11/23 1Group 4: Farabaugh, John, Katzovitz, Lott, Patki, Pearce, Snow

Group 4: Project Agenda • Overview of Business Process Redesign models

used in healthcare. • Applicability of principles of Business Process

redesign related to overall Project Management methodologies.

• Effectiveness of such models as part of a Healthcare IT initiative.

• Examples where organizations have used such a model as part of a Healthcare IT initiative.

• Class exercise and questions.

Health Care Challenges that encourage BPR

• Medical errors and high costs of healthcare• Underinsured or uninsured population • Increasing number of heterogeneous and

older population,• Globalization/ medical outsourcing, • Maintaining quality for given cost and cost

minimization for given quality• Shortage of clinical and nursing staff

Expectations from BPR models• Increase in efficiency• Reduce medical and medication errors• Health care cost reduction• Better access and quality in healthcare• Procedure optimization• Time effectiveness• Customer and health care provider

satisfaction

Highlighted solutions• Automating and monitoring processes in

healthcare• Redesigning or improving clinical processes

where necessary and possible• Identifying patient expectations and improving

patient care processes for better customer services.

BPR models: The business process redesign (BPR) models are the processes that target improvisation and optimization of process outputs while maintaining quality.

Six Sigma (Six sigma was invented by Motorola in the 1980s)

• Analytical approach to indentify the inefficiencies and inadequacies in the process and provide a step by step solution based on analysis of real time data.

• Process must have < 3.4 defects per million occurrences (Carrigan, 2006)

• Statistical calculation that suggests customer needs /satisfaction to meet 99.99997% or 6-Sigma level. (Caldwell 2006)

• Focuses on customer satisfaction, process improvement and cost reduction. (Breyfogle, 2003)

• Uses structured methodology and powerful statistical tools that provide a scientific approach to process improvement and patient safety. (http://www.medscape.com)

Six Sigma Sub methodologies• DMAIC: Define, Measure, Analyze, Improve, and

Control; (improve existing processes ) • DMADV: Define, Measure, Analyze, Design,

Verify; (develop new processes or products at Six Sigma quality levels) (http://www.isixsigma.com/sixsigma/six_sigma.asp)

• Implementing 6sigma: “Black Belt” = organize of Six Sigma project “Green belt” = implement and monitor the

project.

Applications of BPR models:• Scheduling appointments• Emergency room allotment• Diagnostic imaging• Patient follow up appointments• Cancer screenings• Bed allotment systems• Minimizing duplication of records, bills, scheduling of

follow ups and refills• Reduce “off time” of the systems to improve

accessibility and promptness• Reducing wait times at Dr.’s office and many more.

BPR Obstacles

• Internal and external challenges such as resistance to change, financial challenges, hierarchical tensions, changing workforce, lack of commitment, lack of implementation

• Six Sigma requires a clear goal setting, ample training of employees and commitment to implement the projects thoroughly.

• success is not guaranteed (Corn 2009)

Business Process Reengineering and Health Care IT

• IT often plays a support role in BPE in health care

• “What has to happen when you design the new process, you find how information technology is going to be used to support that new process, and if you don’t have that technological capability, you’re going to have to go and get it.” (George W. Whetsell)

04/11/23 Group 4: Farabaugh, John, Katzovitz, Lott, Patki, Pearce, Snow 10

Denver Health (Lean)• Pure IT project: patient scheduling application

development• Project timeline reduced 50%, outside

consulting cost reduced 36%.• IS had previously sat “on the sidelines” in lean

initiatives, but sought to use lean to make the department more efficient

• Challenge was to fit lean concepts to a longer term IT project.

04/11/23 Group 4: Farabaugh, John, Katzovitz, Lott, Patki, Pearce, Snow 11

Denver Health (Lean)• Rapid Improvement Event (RIE) model was

tweaked to fit this specific project– Embedded into project cycle, redefining how

project was managed– Custom templates created– Special attention given to lean tools, activity flow,

and frequency of RIE events

• Involvement of end users• “Red phone” mentality04/11/23 Group 4: Farabaugh, John, Katzovitz, Lott, Patki, Pearce, Snow 12

VA’s VistA QUERI system (TQM)• Quality Improvement initiative within the VA,

where data from the organization’s nationwide interoperable VistA EMR system is integral to the total process of improving patient outcomes.

04/11/23 Group 4: Farabaugh, John, Katzovitz, Lott, Patki, Pearce, Snow 13

04/11/23 Group 4: Farabaugh, John, Katzovitz, Lott, Patki, Pearce, Snow 14

Hynes, D. M., Perrin, R. A., Rappaport, S., Stevens, J. M., & Demakis, J. G. Informatics Resources to Support Health Care: Quality Improvement in the Veterans Health Administration. Journal of the American Medical Informatics Association. 2(5), 344-350.

Virginia Mason (Lean)• IT served as a support role to improve areas

identified as cost-centers– Implementation of CPOE to reduce unnecessary

prescriptions and reduce ER visits due to low refill allowances

– Implementation of decision support to alert clinicians when tests fall into the “not useful” category

04/11/23 Group 4: Farabaugh, John, Katzovitz, Lott, Patki, Pearce, Snow 15

Bibliography• Corn, J.B., Six Sigma in Health Care, Radiologic Technology. September/October 2009; 81(1):

92-95• Bergman, R. (1994). Reengineering Healthcare. Hospitals & Health Networks. 5 February,

1994, 28-36.• Breyfogle, F.W., Implementing Six Sigma: Smarter Solutions Using Statistical Methods, 2nd ed.

2003, Wiley, New York, NY.• http://www.isixsigma.com/sixsigma/six_sigma.asp)• http://www.medscape.com/viewarticle/449692_6)• Carrigan MD, Kujawa D. Six Sigma in health care management and strategy. Health Care

Management. 2006;25(2):133-141• Caldwell, C., Lean-Six Sigma tools for rapid cycle cost reduction, Healthcare Financial

Management. Oct 2006, 60 (10)• McQueen, H. E. (1993). The healthcare CIO’s role in business process redesign. Computers in

Healthcare. February, 1993, 24-28.• Schweikhart SA, Dembe AE. J Investig Med. 2009 Sep 2• Shaffer, Vi. (2008). Case Study: Denver Health Leverages ‘Lean’ for a Breakthrough in

Enterprise Patient Scheduling Implementation. Gartner Industry Research. 17 December, 2008.

• http://www.pqa.net/ProdServices/sixsigma/sixsigma.html