Measuring cost savings of process improvement.

2013 ◽  
Vol 31 (31_suppl) ◽  
pp. 196-196
Author(s):  
Alexis Barboza ◽  
Elizabeth Rebello ◽  
Heidi Wied Albright ◽  
Johnny Dang ◽  
Jennifer Jones ◽  
...  
Keyword(s):  
Process Improvement ◽  
Planning Process ◽  
Cost Savings ◽  
Bone Marrow Aspiration ◽  
Cancer Center ◽  
Process Mapping ◽  
Activity Based Costing ◽  
Process Improvements ◽  
Anesthesia Providers ◽  
The Cost

196 Background: The aim of the project was to use anesthesia providers in a cancer center to lead process improvements using time-driven activity-based costing (TDABC), a system of measuring process and capacity costs. Methods: The process improvement objectives were centered on eliminating unnecessary patient care processes and improving patient flow. Teams were tasked with planning, process mapping, improving processes, and measuring costs. Projects were done in four anesthesia sites: ambulatory surgery, bone marrow aspiration, pediatric CT and XRT, and cardiopulmonary areas. Results: Process mapping identified areas for improvement and costs before and after the improvement. The Table highlights four project areas’ average total cost and time savings per patient using TDABC methodology. Conclusions: TDABC is a costing methodology that measures the costs of care utilizing process maps. Anesthesia providers had front-line insight in improving process flow and found the process mapping useful to improve processes and measure the cost savings of the improvement. In each area there was improvement or no adverse effect on patient outcomes. This project demonstrates that TDABC illustrates inefficiencies and provides a method to evaluate the cost savings of process improvements. As cancer care reimbursement evolves, the ability to control costs while providing value-based care is essential. [Table: see text]

scholarly journals Time-Driven Activity-Based Costing: A Better Way to Understand the Cost of Caring for Hip Fractures

2020 ◽  
Vol 11 ◽  
pp. 215145932095820
Author(s):  
Breanna L. Blaschke ◽  
Harsh R. Parikh ◽  
Sandy X. Vang ◽  
Brian P. Cunningham
Keyword(s):  
Hip Fracture ◽  
Hip Fractures ◽  
Financial Strain ◽  
Process Mapping ◽  
Activity Based Costing ◽  
Fracture Care ◽  
Patient Level ◽  
Reducing Costs ◽  
The Cost ◽  
Payment Models

Geriatric hip fractures are a common and costly injury. They are expected to surge in incidence and economic burden as the population ages. With an increasing financial strain on the healthcare system, payors and providers are looking toward alternative, value-based models to contain costs. Value in healthcare is the ratio of outcomes achieved over costs incurred, and can be improved by reducing cost while maintaining or improving outcomes, or by improving outcomes while maintaining or reducing costs. Therefore, an understanding of cost, the denominator of the value equation, is essential to value-based healthcare. Because traditional hospital accounting methods do not link costs to conditions, there has been little research to date on the costs of treating geriatric hip fractures over the entire cycle of care. The aim of this article is to summarize existing costing methodologies, and in particular, to review the strengths and limitations of Time-Driven Activity-Based Costing (TDABC) in orthopaedic trauma, especially as it pertains to the needs and challenges unique to hip fracture care. TDABC determines costs at the patient-level over the entire care cycle, allowing for population variability, while simultaneously identifying cost drivers that might inform risk-stratification for future alternative payment models. Through process mapping, TDABC also reveals areas of variation or inefficiency that can be targeted for optimization, and empowers physicians by focusing on costs in the control of the provider. Although barriers remain, TDABC is well-positioned to provide transparent costing and targets to improve the value of hip fracture care

scholarly journals Improving the Performance and Quality of Processes by Applying and Implementing Six Sigma Methodology in Furniture Manufacturing Process

2019 ◽  
Vol 70 (2) ◽  
pp. 193-202
Author(s):  
Ľubica Simanová ◽  
Andrea Sujová ◽  
Pavol Gejdoš
Keyword(s):  
Process Improvement ◽  
Six Sigma ◽  
Cost Savings ◽  
Furniture Manufacturing ◽  
Mapping Process ◽  
Six Sigma Methodology ◽  
And Performance ◽  
The Cost ◽  
And Control

The main aim of this paper is to illustrate the application of selected methods and procedures in the implementation of the Six Sigma Methodology in the furniture manufacturing processes, specifically in the wood veneer pressing, to verify the application and to evaluate the benefits of using selected methods and procedures through a series of step DMAIC process improvement. The application of selected methods and tools within the Six Sigma Methodology, such as DPMO, efficiency and sigma levels, project charter, histogram of mistakes caused by the application of the adhesive, the SIPOC plot mapping process, reaction plans, Ishikawa diagram and control diagrams bring the system and clarity of measurable results into project management for process improvement and process change. The benefits of their use are the cost savings and performance improvement processes.

scholarly journals Using activity-based costing and simulation to reduce cost at a police communications centre

2017 ◽  
Vol 40 (2) ◽  
pp. 426-441 ◽  
Author(s):  
Andrew Greasley ◽  
Chris M. Smith
Keyword(s):  
Discrete Event ◽  
Cost Savings ◽  
Vital Role ◽  
National Standards ◽  
Activity Based Costing ◽  
Content Type ◽  
Service Levels ◽  
Event Simulation ◽  
Timely Response ◽  
The Cost

Purpose This study is based at a police force’s communications centre which undertakes a vital role in receiving and processing emergency and non-emergency telephone calls from the public and other agencies. The purpose of this paper is to evaluate a method for addressing the conflict between the need to reduce cost and the requirement to meet national standards in terms of a timely response to customer calls. Design/methodology/approach In a two-stage methodology an activity-based costing (ABC) approach is used as a framework to show how costs are generated by the three “drivers” of cost which relate to the design efficiency of the process, the demand on the process and the cost of resources used to undertake the process. The study then provides an analysis from a resource driver perspective using discrete-event simulation to model workforce staffing scenarios. Findings Cost savings within the police communications centre are identified from an analysis of the three drivers of cost. Further analysis from a resource driver viewpoint using a simulation study of an alternative workforce schedule predicted an overall reduction in staffing cost of 9.4 per cent. Originality/value The study outlines an innovative method that identifies where cost can be reduced using ABC and then provides an assessment of strategies that aim to reduce cost whilst maintaining service levels in a police operation using simulation.

Mobile Business Process Reengineering

2011 ◽  
pp. 1788-1812
Author(s):  
Dieter Hertweck ◽  
Asarnusch Rashid
Keyword(s):  
Mobile Applications ◽  
Business Processes ◽  
Cost Savings ◽  
Mobile Systems ◽  
Activity Based Costing ◽  
Mobile Business ◽  
Profitability Analysis ◽  
Medical Sector ◽  
The Difference ◽  
The Cost

There is an ongoing debate about the value of mobile applications for the optimization of business processes in European hospitals. Thus finding satisfying methods to measure the profitability of mobile applications seems to be of great importance. Prior research had its focus mainly on general value dimensions concerning the medical sector or the usability and design aspects of hospital information systems. Conterminous to that, the authors chose a strictly process-oriented approach. They modeled the requirements of future mobile systems as an output of a profitability analysis based on activity-based costing. The cost savings defined as the difference between former and future business processes were used as an incoming payment for an ROI analysis. In a nutshell, the authors present a case study that highlights the value of their analyzing method as well as the enormous benefit of mobile applications in the area of food and medical supply processes in German hospitals.

Measuring cost in the value equation using time-driven activity-based costing (TDABC) at The University of Texas MD Anderson Cancer Center, Division of Radiation Oncology.

2017 ◽  
Vol 35 (15_suppl) ◽  
pp. e18305-e18305
Author(s):  
Nicholas D. Olivieri ◽  
Benjamin D. Frank ◽  
John D. Calhoun ◽  
Alexis B. Guzman ◽  
Justin N. Onwenu ◽  
...  
Keyword(s):  
Radiation Therapy ◽  
Radiation Oncology ◽  
Treatment Modality ◽  
Cancer Center ◽  
Activity Based Costing ◽  
Site Specific ◽  
Process Maps ◽  
Disease Site ◽  
Md Anderson ◽  
The Cost

e18305 Background: The cost of a full cycle of radiation therapy at MD Anderson Cancer Center has not been determined using a bottom-up measurement approach. Due to the complexity and variation in clinical processes, typical costing strategies do not provide the level of detail necessary to evaluate the value equation, defined as outcomes over cost. To address this limitation, we designed and implemented a practice-wide Time-Driven Activity-Based Costing (TDABC) strategy to capture our total direct cost of care for all treatment modalities within each of 9 disease site-specific services. Methods: Process maps were created for each of the 9 disease site-specific services. Care delivery times were captured by treatment modality for each service as determined by multidisciplinary teams routinely performing each step of the process. The data were entered into a standardized tool, which calculated step costs based upon capacity cost rates for each human resource. The costing tool also calculated total direct labor costs for specific treatment plans based on modality, complexity, and fractionation. Results: The analysis took six months to complete and required the use of approximately 1,000 administrative hours, 250 physician hours, 250 clinical staff hours and 100 medical physics hours. Approximately 17 process maps were created for each of the 9 services with each process map receiving further analysis based upon radiation treatment modality. As a result of observed variation in costs between disease-site services, best practices were identified and 15 standardization opportunities were discovered. Additionally, the cost-benefit analysis between high profile modalities within each disease-site service, such as Proton Therapy and Intensity Modulated Radiation Therapy (IMRT) on the Head and Neck service, were easier to complete. Conclusions: Time-Driven Activity-Based Costing is a valid method for calculating direct costs in a large academic radiation oncology practice. Standardized clinical outcome data can be used to complete the value equation and ultimately provide insight for better clinical and administrative decision making.

scholarly journals A time-driven activity-based costing approach for identifying variability in costs of childbirth between and within types of delivery

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Kathia Dubron ◽  
Mathilde Verschaeve ◽  
Filip Roodhooft
Keyword(s):  
Health Care Providers ◽  
Care Providers ◽  
Education Attainment ◽  
Activity Based Costing ◽  
Process Maps ◽  
Process Improvements ◽  
Personnel Costs ◽  
Parity Number ◽  
Cohort Study Design ◽  
The Cost

Abstract Background Recently, time-driven activity-based costing (TDABC) is put forward as an alternative, more accurate costing method to calculate the cost of a medical treatment because it allows the assignment of costs directly to patients. The objective of this paper is the application of a time-driven activity-based method in order to estimate the cost of childbirth at a maternal department. Moreover, this study shows how this costing method can be used to outline how childbirth costs vary according to considered patient and disease characteristics. Through the use of process mapping, TDABC allows to exactly identify which activities and corresponding resources are impacted by these characteristics, leading to a more detailed understanding of childbirth cost. Methods A prospective cohort study design is performed in a maternity department. Process maps were developed for two types of childbirth, vaginal delivery (VD) and caesarean section (CS). Costs were obtained from the financial department and capacity cost rates were calculated accordingly. Results Overall, the cost of childbirth equals €1894,12 and is mainly driven by personnel costs (89,0%). Monitoring after birth is the most expensive activity on the pathway, costing €1149,70. Significant cost variations between type of delivery were found, with VD costing €1808,66 compared to €2463,98 for a CS. Prolonged clinical visit (+ 33,3 min) and monitoring (+ 775,2 min) in CS were the main contributors to this cost difference. Within each delivery type, age, parity, number of gestation weeks and education attainment were found to drive cost variations. In particular, for VD an age >  25 years, nulliparous, gestation weeks > 40 weeks and higher education attainment were associated with higher costs. Similar results were found within CS for age, parity and number of gestation weeks. Conclusions TDABC is a valuable approach to measure and understand the variability in costs of childbirth and its associated drivers over the full care cycle. Accordingly, these findings can inform health care providers, managers and regulators on process improvements and cost containment initiatives.

Mobile Business Process Reengineering

2009 ◽  
pp. 2391-2417
Author(s):  
Dieter Hertweck ◽  
Asarnusch Rashid
Keyword(s):  
Mobile Applications ◽  
Business Processes ◽  
Cost Savings ◽  
Mobile Systems ◽  
Activity Based Costing ◽  
Mobile Business ◽  
Profitability Analysis ◽  
Medical Sector ◽  
The Difference ◽  
The Cost

There is an ongoing debate about the value of mobile applications for the optimization of business processes in European hospitals. Thus finding satisfying methods to measure the profitability of mobile applications seems to be of great importance. Prior research had its focus mainly on general value dimensions concerning the medical sector or the usability and design aspects of hospital information systems. Conterminous to that, the authors chose a strictly process-oriented approach. They modeled the requirements of future mobile systems as an output of a profitability analysis based on activity-based costing. The cost savings defined as the difference between former and future business processes were used as an incoming payment for an ROI analysis. In a nutshell, the authors present a case study that highlights the value of their analyzing method as well as the enormous benefit of mobile applications in the area of food and medical supply processes in German hospitals.

Mobile Business Process Reengineering

2011 ◽  
pp. 174-198
Author(s):  
Dieter Hertweck ◽  
Asarnusch Rashid
Keyword(s):  
Mobile Applications ◽  
Business Processes ◽  
Cost Savings ◽  
Process Reengineering ◽  
Activity Based Costing ◽  
Mobile Business ◽  
Profitability Analysis ◽  
Medical Sector ◽  
The Difference ◽  
The Cost

There is an ongoing debate about the value of mobile applications for the optimization of business processes in European hospitals. Thus finding satisfying methods to measure the profitability of mobile applications seems to be of great importance. Prior research had its focus mainly on general value dimensions concerning the medical sector or the usability and design aspects of hospital information systems. Conterminous to that, the authors chose a strictly process oriented approach. They modelled the requirements of future mobile system as an output of a profitability analysis based on activity based costing. The cost savings defined as the difference between former and future business processes were used as an incoming payment for a ROI analysis. In a nutshell, the authors present a case study that highlights the value of their analyzing method as well as the enormous benefit of mobile applications in the area of food- and medical supply processes in German hospitals.

scholarly journals Drug Recovery and Copay Assistance Program in a Community Cancer Center: Charity and Challenges

2019 ◽  
Vol 15 (7) ◽  
pp. e628-e635 ◽  
Author(s):  
Robert D. Siegel ◽  
Richard G. Slough ◽  
Howland E. Crosswell ◽  
Theresa M. Standifer ◽  
Michael E. Borron ◽  
...  
Keyword(s):  
Young Adults ◽  
Cancer Care ◽  
Financial Burden ◽  
Cost Savings ◽  
Adolescents And Young Adults ◽  
Cancer Center ◽  
Care Providers ◽  
Assistance Program ◽  
The Cost ◽  
The Impact

PURPOSE: The cost of cancer care is escalating dramatically, in part because of the rising expense of systemic cancer therapy. This creates financial dilemmas for patients and insurers and potential economic disruption for institutions attempting to provide cancer care to the underserved. Our institution initiated a drug recovery and copay assistance program (DRCAP) to mitigate the impact of the rising cost of parenteral medications. METHODS: We performed a 3-year review of our strategies to mitigate financial burden of parenteral therapeutics and supportive care medicines. Financial metrics were established and analyzed before and after implementing DRCAP. Medication encounters and associated costs were stratified by adolescents and young adults (15 to 39 years of age), and adults 40 years of age and older and were annualized from 2016 to 2018. RESULTS: The DRCAP resulted in a total of nearly $3.5 million worth of drugs replaced or copay assistance yearly in 2017 and 2018. This accounted for approximately 10% of our pharmacy budget for parenteral medications in each of these years. The vast majority was received in the form of drug replacement. The DRCAP resulted in assistance to 173 and 256 patients in 2017 and 2018, respectively. CONCLUSION: A DRCAP increased availability of otherwise unaffordable parenteral oncolytics and resulted in cost savings for our institution. Adolescents and young adults were disproportionately represented because of inadequate or no insurance. Despite the salutary benefits, such programs likely inflate the overall cost of cancer care. Cancer care providers participating in a DRCAP will remain in this conundrum until market forces can affect the cost of oncology therapeutics.

Knowledge acquisition through process mapping

2016 ◽  
Vol 65 (3) ◽  
pp. 302-323 ◽  
Author(s):  
Gareth R.T. White ◽  
Svetlana Cicmil
Keyword(s):  
Knowledge Acquisition ◽  
Process Improvement ◽  
Business Process ◽  
Business Processes ◽  
Future Research ◽  
Process Mapping ◽  
Structured Interviews ◽  
Business Process Improvement ◽  
Content Type ◽  
Process Improvements

Purpose – Business improvement initiatives have benefit for both an organisation’s operational effectiveness and its knowledge acquisition capabilities. These have a synergistic effect upon the ability to gain and maintain competitive advantage. Among the multitude of approaches that can be adopted process mapping (PMapping) is widely used. The purpose of this paper is to examine the utilisation of PMapping for undertaking business process improvement and the resultant acquisition of knowledge among those that are involved in its performance and the subsequent use of process maps (PMaps). Design/methodology/approach – Adopting the notion of " knowledge as knowing " and Activity Theory as the research framework, a four-year Participatory Action Research study of three organisations was conducted. Data were gathered through cyclically developed semi-structured interviews, on-site observation and instantaneously sampled field notes. Findings – It finds that PMapping is a useful technique for conducting business process improvements and acquiring knowledge of organisations and their people. It also finds that PMaps are useful knowledge repositories that have value beyond aiding the development of improved business processes. Socialisation is a key determinant of knowledge coproduction and transfer. This study finds that it occurs in formal and informal modes between individuals engaged in PMapping. Research limitations/implications – The choice of PMapping technique may have significant influence upon the knowledge that is acquired by individuals and organisations during business process improvement initiatives. Future research should explore the relationship between PMapping methods, their knowledge-generative potential and the usability of the resultant PMaps. Practical implications – Organisations undertaking business process improvement initiatives should take account of those factors that mediate its undertaking and its knowledge-generative potential. The objectives of improvement initiatives and of specific activities such as PMapping need to be carefully considered. Changes in objectives need clear communication and justification, and the purpose and benefit of such changes must be weighed against the potential detrimental effect that they may have upon the workforce. Inconsiderate goals setting and changing can lead to individuals coming under significant psychological and sociological pressures. Originality/value – This research furthers the understanding of knowledge acquisition and business process improvement in non-manufacturing environments. It identifies the challenges involved in adopting PMapping as a business improvement tool. It also provides insight into the use of the tool as a technique for fostering knowledge acquisition in individuals.

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