Saving Heart Patient Lives

Waste Reduction in Health Care Case Study at Stanford University Hospital: 70% reduction in the cost of Cardiac Artery Bypass Graft (CABG) Surgery
Industry: 
Stanford Hospital and Clinics

 

The Problem

Insurance company notified Hospital that their cost of Cardiac Bypass Graft Surgery was not competitive and would receive no more patients.

The Solution

Lean Six Sigma* waste detection and reduction method found that 70% of the cost was waste which was eliminated.

Go to http://strongamericanow.org/about/lean-six-sigma  for a full description of Lean Six Sigma.

Results of Waste Reduction

  • 52% reduction in mortality: Coronary Artery Bypass Graft mortality from 7.1% to 3.7% in three years
  • 70% reduction in cost within 3 years: from ~$40,000 to $12,000
  • Over 70 Waste reduction projects were implemented including:

        - Reduced blood utilization

        - Less expensive antibiotic utilization

        - Shorter Intensive Care Unit Stays

        - Less frequent use of invasive technologies, i.e. Swan GanzCatheters

        - Consolidation of intra-operative supplies

Example of Waste Reduction

  • Each of the six Cardiothoracic surgeons had specified different surgical pack components such as connectors, sponges, retractors, sutures etc.
  • Working as a team, the surgeons standardized on one common pack
  • Cost reduced by higher volumes, setup time and setup errors in filling surgical pack dramatically reduced
  • Differences in surgical packs was of no value to the patient and which is the definition of waste 

Conclusion 

  • 70% of the cost of surgery was eliminated with better outcomes for patients
  • The Institute of Medicine/National Academy of Engineering joint study concluded that 30-40% of the cost of medical care was waste
  • By eliminating waste, Medicare as we know it can be preserved at no additional cost to Seniors in the foreseeable future