Lean Implementation and Hospital Performance: The Moderating Effect of Managerial Ability

2021 ◽  
Vol 5 (1) ◽  
pp. 145-181
Author(s):  
Huilan Zhang

Author(s):  
Elina Reponen ◽  
Thomas G Rundall ◽  
Stephen M Shortell ◽  
Janet C Blodgett ◽  
Ritva Jokela ◽  
...  

Abstract Background Healthcare organizations around the world are striving to achieve transformational performance improvement, often through adopting process improvement methodologies such as Lean management. Indeed, Lean management has been implemented in hospitals in many countries. But despite a shared methodology and the potential benefit of benchmarking lean implementation and its effects on hospital performance, cross-national Lean benchmarking is rare. Healthcare organisations in different countries operate in very different contexts, including different healthcare system models, and these differences may be perceived as limiting the ability of improvers to benchmark Lean implementation and related organisational performance. However, there is no empirical research available on the international relevance and applicability of Lean implementation and hospital performance measures. To begin to understand the opportunities and limitations related to cross-national benchmarking of Lean in hospitals, we conducted a cross-national case study of the relevance and applicability of measures of Lean implementation in hospitals and hospital performance. Methods We report an exploratory case study of the relevance of Lean implementation measures and the applicability of hospital performance measures using quantitative comparisons of data from Hospital District of XX XX University Hospital in Finland and a sample of 75 large academic hospitals in the United States. Results The relevance of Lean-related measures was high across the two countries: almost 90% of the items developed for a US survey were relevant and available from XX. A majority of the US-based measures for financial performance (66.7%), service provision/utilisation (100.0%), and service provision/care processes (60.0%) were available from XX. Differences in patient satisfaction measures prevented comparisons between XX and the US. Of 18 clinical outcome measures, only four (22%) were not comparable. Clinical outcome measures were less affected by the differences in healthcare system models than measures related to service provision and financial performance. Conclusions Lean implementation measures are highly relevant in healthcare organisations operating in the United States and Finland, as is the applicability of a variety of performance improvement measures. Cross-national benchmarking in Lean healthcare is feasible, but a careful assessment of contextual factors, including the healthcare system model, and their impact on the applicability and relevance of chosen benchmarking measures is necessary. The differences between the US and Finnish healthcare system models is most clearly reflected in financial performance measures and care process measures.





2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
John C.A.M. van Beers ◽  
Desirée H. van Dun ◽  
Celeste P.M. Wilderom

Purpose Lean implementations in hospitals tend to be lengthy or lack the desired results. In addressing the question, how can lean be implemented effectively in a hospital-wide setting, this paper aims to examine two opposing approaches. Design/methodology/approach The authors studied two Dutch university hospitals which engaged in different lean implementation approaches during the same four-year period: top-down vs bottom-up. Inductive qualitative analyses were made of 49 interviews; numerous documents; field notes; 13 frontline meeting observations; and objective hospital performance data. Longitudinally, the authors depict how the sequential events unfolded in both hospitals. Findings During the six implementation stages, the roles played by top, middle and frontline managers stood out. While the top managers of one hospital initiated the organization-wide implementation and then delegated it to others, the top managers of the other similar hospital merely tolerated the bottom-up lean activities. Eventually, only the hospital with the top-down approach achieved high organization-wide performance gains, but only in its fourth year after the top managers embraced lean in their own daily work practices and had started to co-create lean themselves. Then, the earlier developed lean infrastructure at the middle- and frontline ranks led to the desired hospital-wide lean implementation results. Originality/value Change-management insights, including basic tenets of social learning and goal-setting theory, are shown to advance the knowledge of effective lean implementation in hospitals. The authors found lean implementation “best-oiled” through role-modeling by top managers who use a phase-based process and engage in close cross-hierarchical or co-creative collaboration with middle and frontline managerial members.



2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Huilan Zhang

Purpose There has been little empirical research focused on the effect of lean on hospital performance in the form of a consolidated methodology. This paper aims to apply a more sophisticated approach to examine whether hospitals’ decision for lean implementation is endogenous and test the effects of lean on hospital performance. Design/methodology/approach This study uses a publicly available data set of hospitals across the USA from 2002 to 2019 and performs two-stage least squares (2SLS) analysis. In the first stage, a probit model is used to estimate hospitals’ decision to implement lean. The fitted probability values from the first stage are used in the second stage to test the relationship between lean and hospital performance. Ordinary least squares (OLS) regression results are compared with those of the 2SLS approach. Findings The decision to implement lean is significantly associated with hospital-specific characteristics (the complexity of care, size and cost-to-charge ratio), indicating hospitals’ decision for lean implementation is endogenous. Moreover, there is strong evidence that lean implementation is positively associated with hospital financial and operational performance. The Hausman F-tests confirm the presence of endogeneity and this, in turn, suggests that OLS regressions result in unreliable estimates. Practical implications The findings of this study can help hospital managers benchmark performance and explore opportunities for profit and efficiency improvement. The findings are also relevant to policymakers who strive to lower health-care spending. Originality/value This study is motivated by the challenges facing the health-care industry. This study is among the first to investigate endogeneity in lean implementation and the association between lean and hospital performance using large-scale archival panel data. The use of the 2SLS approach provides more confidence in statistical findings.



2018 ◽  
Author(s):  
Huilan Zhang ◽  
Hassan R. Hassabelnaby ◽  
Amal A. Said




2014 ◽  
Author(s):  
Han-Chun Chung ◽  
Jen-Ho Chang ◽  
Yi-Cheng Lin ◽  
Chin-Lan Huang


2018 ◽  
Author(s):  
Jessica K. Morgan ◽  
James Trudeau ◽  
Joel K. Cartwright ◽  
Pamela K. Lattimore


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