I just finished a reading an article titled “The “Third School” for Controlling Health Care Costs?”[1] and I found it very exciting to read. In it, he talks about “System Reformers” that once were focused on improving Quality and now are focused on Quality and controlling costs. I have worked in manufacturing for years and our Quality Organizations were just that focused on “Improving Quality”. In today’s world that has changed for the better with the coming of Six Sigma a process focused on improving quality and reducing costs. I believe these reformers Altman talks about are the same.
I know some people do not like the words Six Sigma and that is because what they were told was Six Sigma did not work. There maybe several definition out there but the one I know that is working is Six Sigma is a 5 step process based on facts and data focused on customer value to grow the business. Six Sigma Belts are change agents/ System Reformers trying to create value for the customer/ patient by reducing costs (which speaks to management) and improving value (Quality). Even in manufacturing Quality Improvement never got a high priority until Quality Professionals started talking money.
I agree with Altman real cost containment and control never really comes from outside the box through regulations by the “Regulators” nor from competing health care plans and informed consumers per the “Marketeers”. It has to come from inside the box through what he calls the “System Reformer”. The True Reformer/ Change agent will be focused on creating value for all stakeholders (Stockholders, Employees/ Care Givers, and Customers/ Patients). They have to create value, NOT costs, and it can be done one area/ company at a time. The big issue will be working these change across different organizations. Again, though, manufacturing did this by working with its suppliers and customers to help them apply the same to their groups.
I believe that all of the serious questions he mentions about the System Reformers success can be addressed. Will the System Reformer approach be successful? I would answer YES! At least to all that embrace its approach. The results, from these companies, will drive others to do the same. That is how Six Sigma became as successful as it has. At first many company did not embraces Six Sigma but with time and successes at their competition, many now do. And a lot of those are in the Fortune 500.
I see the System Reformer as the only true way to get cost under control.
Peter Bersbach
Six Sigma Master Black Belt
1.520.829.0090
[1] Drew Altman, PhD, “The “Third School” for Controlling Health Care Costs?”, The Henry J. Kaiser Family Foundation www.kff.org , Oct 29 2009, http://www.kff.org/pullingittogether/102909_altman.cfm
Tags: Cost Containment, Health Care, Leadership, Method
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