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Six Sigma MEPRS Management Metrics

Six Sigma MEPRS Management Metrics. TMA MEPRS Program Office Management Control and Financial Studies Division. By the end of this presentation, you will be able to : Describe the origin and goals of Six Sigma Identify how Six Sigma is used in healthcare and other industries

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Six Sigma MEPRS Management Metrics

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  1. Six Sigma MEPRS Management Metrics TMA MEPRS Program Office Management Control and Financial Studies Division

  2. By the end of this presentation, you will be able to: • Describe the origin and goals of Six Sigma • Identify how Six Sigma is used in healthcare and other industries • Understand and correctly interpret the S2M3 tool • Understand how individual MTF characteristics can affect its position among its peer group/cohort.

  3. Six Sigma in Healthcare: • Using Lean Six Sigma, Morton Plant Hospital in Clearwater, FL, improved patient satisfaction over 50%, reduced emergency department length of service by 21%, and recovered over $4 million in cost of quality (aka rework). • Kaiser Permanente Colorado used Lean Six Sigma to evaluate and improve Medicaid enrollment processes. A three-month project resulted in a 45 percent gain in Medicaid membership while increasing Medicaid revenue by more than $1 million annually. • The Nebraska Medical Center used Six Sigma to improve the completeness and availability of physician orders for patients; the project occurred within a Six Sigma program that has returned about $7.5 million in savings.

  4. Control Panel – S2M3 User Notes

  5. Control Panel – Peer Groups

  6. Mean/Avg Mean minus 1 St Dev Mean plus 1 St Dev The Bell Curve

  7. Graph 1

  8. Graph 2

  9. Madigan [2] [1] For close to 1,000,000 scripts, we would expect the expenses to be closer to $9,000,000 [1] but at Madigan for the same number of scripts, the expenses arearound $12,000,000 [2]. Graph 3

  10. General Conclusions • OCONUS is more expensive than CONUS. • Facilities with a military mix are more expensive than those with contract or civilian personnel. • Hospitals or clinics with greater volume of workload fare better. • Inappropriate cost allocation drives cost results. • Non-reporting of borrowed labor drives results.

  11. Analysis There are basically two values in play for each metric that require analysis. In this case, they are Available FTEs and Pharmacy Weighted Procedures

  12. Summary • Six Sigma is a quality process. • Six Sigma MEPRS Management Metrics is a tool that can be used to identify areas where a Six Sigma process improvement plan can be implemented. • The Executive Summary is a good place to begin the exploration. • There are basically two components to each metric. Look at the components separately to determine where the issue may lie. • Use data sources like the EAS IV Repository, MEWACS, and CCR to isolate issues.

  13. You can now: • Describe the origin and goals of Six Sigma • Identify how Six Sigma is used in healthcare and other industries • Understand and correctly interpret the S2M3 tool • Understand how individual MTF characteristics can affect its position among its peer group/cohort.

  14. Six Sigma MEPRS Management Metrics (S2M3) Questions?

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