Study Illustration Capsule 11.1 on page 330 of our textbook. It discusses CAMC's use of Six Sigma practices.

List three tangible benefits provided by the program. (attached)

Explain why a commitment to quality control is particularly important in the hospital industry.

How can the use of a Six Sigma program help medical service providers survive and thrive in the context of CoViD-19?

Reference : Book: Arthur-A-Thompson-Jr-Crafting-Executing-Strategy-The-Quest-for-Competitive-Advantage-Concepts-and-Cases-McGraw-Hill-Higher-Education-2017-PD - Page-330

ILLUSTRATION Charleston Area Medical CAPSULE 11.1 Center's Six Sigma Program targets were posted in nursing units, and adherence to the aight Hospital Quality Alliance (HOA) indicators of quality care for AMI patients was tracked. As a result of the program, CAMC improved its compliance with HQA- recommended treatment for AMI from 50 to 95 percent. Harvard researchers identified CAMC as one of the top- performing hospitals reporting comparable data. Controlling cost has also baon an important aspect of CAMC's performance improvement initiatives due to local regulations West Virginia is one of two states where medical services rates are set by state regulators. This forces CAMC to limit expanditures because the hospi- tal cannot raise prices. CAMC first applied Six Sigma in OFAproductiona Lid and Progra LLC an effort to control costs by managing the supply chain more effectively The effort created a one-time $150,000 Established in 1972, Charleston Area Medical Center savings by working with vendors to remove outdated (CAMC) is West Virginia's largest health care provider inventory. As a result of continuous improvement, a 2015 in terms of beds, admissions, and revenues In 2000, report stated that CAMC had achieved supply chain CAMC implemented a Six Sigma program to examine management savings of $12 million in the past four years. quality problems and standardize care processes. Par- Since CAMC introduced Six Sigma, over 100 qual- formance improvement was important to CAMC's man- ity improvement projects have boon initiated. A kay agement for a variety of strategic reasons, including to CAMC's success has bean instilling a continuous competitive positioning and cost control. improvement mindset into the organization's culture. The United States has bean evolving toward a pay- Dale Wood, chief quality officer at CAMC, stated: "If for performance structure, which rewards hospitals you have people at the top who completely support for providing quality care. CAMC has utilized its Six and want these changes to occur, you can still fall flat on Sigma program to take advantage of these changes in your face. ... You need a group of networkers who can the health care environment. For example, to improve carry change across an organization." Due to CAMC's its performance in acute myocardial infarction (AMI), performance improvement culture, the hospital ranks CAMC applied a Six Sigma DMAIC (define-massure high nationally in ratings for quality of care and patient analyze- improve-control) approach. Nursing staff mar- safety. as reported on the Canters for Medicare and bers were educated on AMI care processes, performance Medicaid Services (CMS) website. Nore: Developed with Robin A. Daley Sources: CAMC website, Martha Hostetter, "Case Study: Improving Performance at Charleston Area Medical Center," The Commonwealth Fund, November-December 2007, www.commonwealthfund.org/publicationwinswaletters/quality-matterw/2007ovember-december/ cuss-study-improving-performance-at-charleston-area-medical-contar laccessed January 20151 J. C Simmons, "Using Six Sigma to Make a Difference In Health Care Quality" The Quality Lower, April 2002. Business process The Difference between Business Process Reengineering and reengineering aims at ana- Continuous-Improvement Programs Like Six Sigma and TQM time quantum improvement, Whereas business process reengineering aims at quantum gains on the order of while continuous- 30 to 50 percent or more, total quality programs like TOM and Six Sigma stress improvement programs like TOM and Six Sigma on going incremental progress, striving for inch-by-inch gains again and again in aim at ongoing incremental a never-ending stream. The two approaches to improved performance of value improvements. chain activities and operating excellence are not mutually exclusive; it makes sense to use them in tandem. Reengineering can be used first to produce a good