Deming, who trained as an electrical engineer, believed that quality and cost are inextricably linked, and creating efficiencies in any process would lead to reduced costs and increased quality. He brought with him a background in medical research, having previously held positions at the National Cancer Institute and the Harvard School of Public Health, as well as an interest in the theory and methods of W. Dr James was hired by Intermountain in 1986 as the director of medical research and continuing medical education. Intermountain Healthcare in Salt Lake City, Utah, recognised the link between variance, quality and cost early on thanks in part to Dr Brent James.
However, EHR-based processes will typically need to be matched with a system strategy that unlocks the potential of front-line clinical teams who are informed by good clinical data and a culture of improvement, quality and safety. state had provided care at a quality level on par with the best performing state.Īddressing unwarranted variance in care protocols and embedding those processes in the electronic health record (EHR) can be an effective way for healthcare leaders to impact both quality outcomes and their bottom lines. The report also estimated that approximately 75,000 deaths might have been prevented in 2005 if every U.S. healthcare system resulted in up to $750 billion of wasted spending in 2009, roughly 30 percent of total healthcare spending in that year.
A 2012 report from the Institute of Medicine found that inefficiencies in the U.S. Failing to address variations can negatively impact the ability to provide quality, consistent, safe and cost-effective care. If different clinicians in the same health system are using widely varying protocols to treat the same conditions, the result will be poorer patient outcomes and a less-than-clear picture of what it truly costs to treat the condition. Within a health system, unwarranted clinical variance is understood as the difference in clinical practices and services that do not derive from unique patient needs and that may involve the overuse, underuse or misuse of medical services. Of all the approaches leaders can leverage to address these issues, reducing unwarranted clinical variance is receiving increased attention. With healthcare costs continuing to rise and clinical outcomes increasingly linked to reimbursement, optimising care and lowering costs are critical factors in determining the competitiveness and effectiveness of hospitals and health systems. Improving care quality and reducing cost are two of the highest priority goals for healthcare leaders.
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Intermountain Healthcare and Royal Free London are working toward a common goal of reduced clinical variance. For more information about Perspectives, go here. This article originally appeared in Perspectives, a thought leadership publication dedicated to rising trends and issues in the healthcare and IT industry.
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