reduction in medication errors
- Reduced illegibility and incompleteness by 77% in just 60 days
- Eliminated the need to purchase $401,000 in purchases in the first year, a savings of 20%
A redesign of this hospital’s medication-use pathway resulted in reduced illegibility and incompleteness by 77% in just 60 days.
This 155-bed Long Term Acute Care Hospital (LTAC) in Pittsburgh, PA had a goal of eliminating all harm. To this end, Value Capture helped the hospital redesign their medication-use pathway to create a direct connection between customers and suppliers (including MDs).
This simple change, based on a core principle of the Toyota Production System, reduced illegibility and incompleteness by 77% in just 60 days — without Computerized Physician Order Entry. Value Capture then helped LifeCare create stability for all elements of the medication-use pathway and streamlined purchasing, eliminating virtually all stock-outs, while freeing up two days per week of a technician’s time to do value-added instead of non-value added work.
The bottom line savings were achieved in the medication inventory, where a simple Toyota-based signaling system eliminated the need to purchase $401,000 in purchases in the first year, for a savings of 20%. The hospital also achieved an ongoing minimum yearly value of $119,000 in eliminated, unnecessary purchases, which totaled 6% of their budget. LifeCare also solved dozens of previously recurring problems by discovering their root causes, further stabilizing their care processes and reducing waste.
Cliff Orme, President of the International Hospital Group, spoke in part about Paul O'Neill's influence on Orme's leadership when he served as the CEO of LifeCare Hospitals in Pittsburgh, in this Habitual Excellence podcast episode.
Orme is also quoted throughout our eBook, "Lasting Impact: Leaders Share Lessons From Paul H. O'Neill, Sr." Register and download this eBook by clicking the button below.
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