Cost Reduction in Healthcare via Lean Six Sigma

The cost of medical care has been increasing at an alarming rate; thus, it is imperative to apply Lean Six Sigma philosophy to gain operational control of a hospital while simultaneously maintaining a high level of service quality. The proposed study concentrates on the concepts of Lean Six Sigma, the integrated Lean Six Sigma framework, and the strategic approach to process innovation to decrease hospital operational costs, streamline the process, and eliminate waste, which consequently improves healthcare quality and patient satisfaction. The study first synthesizes Lean and Six Sigma, and then examines successful Lean Six Sigma practice. As the result of the study, we present the key elements of Lean Six Sigma approach, organizational infrastructure of Lean and Six Sigma, and insights on implementation and deployment of Lean Six Sigma practice to provide an alternative to healthcare for better service and greater efficiency with less cost.