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Six Sigma For Healthcare

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Six Sigma methodologies aim at improving overall quality by eliminating defects and achieving near perfection by restricting the number of possible defects to less than 3.4 defects per million. Six Sigma methodologies were originally developed for implementation in the manufacturing sector but with time their use has spread to the services sector as well. In the services sector, Six Sigma concepts are used mainly for eliminating transactional errors.



Today, the concepts and methodologies of 6-Sigma are increasingly being used in the healthcare industry for improving the quality of services rendered, increasing efficiency, and eliminating human errors that can often prove fatal. However, the use of 6-Sigma in the healthcare industry is a relatively new phenomenon as compared to other service industries that have undergone some type of data-supported, systematic, quality-improvement process. With medical and technological advancements, the demand and expectations for improved medical care are continuously increasing. However, due to lack of effective management systems, inefficiency is increasing, which often leads to congested emergency rooms, customer complaints, and lost revenues.

Benefits

Six Sigma concepts and methods enable a healthcare organization to offer improved healthcare services to patients by streamlining business processes. In the healthcare industry, the quality of services rendered depends a lot on human skills, which is often very difficult to measure and control. 6-Sigma is effective as it is based on a comprehensive approach that focuses on improving both human as well as transactional aspects of a process. Although implementing Six Sigma concepts in the healthcare industry is a challenging task, it does help in getting quick results.

In the healthcare industry, the factors that determine the quality and efficiency are usually the flow of information and interaction between people. Six Sigma helps in streamlining the flow of information and achieving strategic business results by initiating cultural shifts all throughout the organization. 6-Sigma focuses on improving processes rather than just concentrating on the task, which helps in increasing the scope of improvements. It provides the necessary tools and methodologies that help in analyzing and transforming human performance, necessary for achieving significant long-term improvements.

Process

Six Sigma helps in defining a vision for the future, identifying specific goals, and establishing quantitative measures for turning that vision into reality. It helps in formulating goal plans and setting timelines for moving from current performance levels to Six Sigma performance levels. The plans are defined only after documenting their effects on the organization's work processes' that may include flow of information, surgical site procedures, handling patients, and others.

The basic requirements for successfully implementing Six Sigma programs are usually long-term vision, commitment, leadership, management, and training. It is important to provide the requisite training to doctors, nurses, and the administrative staff for making them aware about the various concepts and methodologies. The training may initially appear to be expensive, but is often worth the cost when one considers the benefits such as improved quality of services and increased efficiency. It is necessary for employees working in a healthcare organization to develop an understanding about the various Six Sigma concepts. This will help them in integrating new techniques into the Six Sigma processes for improving quality and effectiveness.
Six Sigma For Healthcare
To understand how this process is helping insurance firms, it is essential to talk about some of the main processes where it has been successfully deployed.

Policy Conversion Process

The main worry for most insurance firms is usually policy conversion turnaround time, which determines how well the firm is able to market and sell its policies. Since turnaround time reflects the overall time it takes for a proposal to get converted into a policy, it becomes necessary for insurance companies to undertake initiatives that will help in reducing the existing turnaround time. This is exactly where many insurance firms have felt the need to deploy highly effective process improvement methodologies such as Six Sigma.

It makes sense to deploy 6 Sigma, because reducing the turnaround time depends a lot on satisfying customer needs and expectations, a tough task that can only be accomplished with this type of process. What it does is that it utilizes time-tested tools such as VOC (Voice of the Customer), which go a long way in satisfying customer needs and expectations.

By using VOC, insurance firms are able to assess the exact needs and requirements of their customers, which in turn allows them to make the necessary changes in their service offerings, i.e. insurance proposals. This automatically results in increased customer interest and consequently increased policy turnaround time, often the main objective of insurance companies.

The Claims Settlement Process

This is another area where insurance firms need to be extra cautious - because inability to process claims in a timely manner can easily tarnish the brand image and reputation of the concerned insurance firm. By communicating the lack of efficient services to their family, friends and associates, even a single unsatisfied customer can seriously affect the firm's future business prospects, something that makes it all the more important for insurance firms to deploy Six Sigma.

This process helps because it enables insurance firms to streamline their claims settlement process that normally comprises of various other sub-processes, often leading to complexities and time delays. Off late, it has started utilizing automated tools and techniques that have enabled insurance firms to make even more improvements in their existing claims settlement process.

For the best results, insurance firms need to deploy Six Sigma right from the time when a new policy is being designed and developed. Ongoing deployments are no doubt possible as is evident from changes made in existing policies, but since not much can be said about the effectiveness of such deployments and since there is plenty at stake, it makes sense to implement Six Sigma right from the beginning. It is only then will the concerned insurance firm be in a better position to ensure the success of its insurance policy proposals.
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•Design For Six Sigma, by Douglas Maider
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Tony Jacowski has sinced written about articles on various topics from University, Six Sigma and Information Technology. Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution's Six Sigma Online offers online and certification classes for lean six sigm. Tony Jacowski's top article generates over 90500 views. to your Favourites.
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