How manufacturing concepts could improve accounting for doctors

Published on February 12, 2015 by Crawfords Accounting
healthcare accounting

In some ways, accounting for doctors is linked inherently with care for patients – the profitability of hospitals, especially private ones, relies on cost-effectiveness, and even in the NHS locums can earn substantial amounts for just a few hours’ work.

But with a seemingly inexorable increase in patient numbers, particularly in accident and emergency departments, ‘patient care’ and treatment can feel more and more like a production line.

Ironically, treating it as such – and similarly to a manufacturing conveyor or automobile assembly plant – could hold the key to better patient care and better accounting for doctors too.

Researchers at Monash University studied a large hospital’s emergency department and introduced ‘Lean Six Sigma’ concepts – an idea from the manufacturing sector that cuts waste and improves the efficient use of knowledge and skills.

Despite the obvious human factor involved in healthcare, they found the LSS concepts, backed up by adequate resources and engagement, were able to improve patient flow and accelerate time to discharge.

“Implementation also allowed the hospital studied to open more beds as well as install new software for monitoring bed availability,” they report.

“At the ward level opening more rehabilitation beds, which improved the discharge process, enhanced patient flow.”

Management expert Professor Greg Bamber explained that some hospitals in recent years have already adopted LSS concepts “to streamline processes and improve costs”.

By doing so, patients can be dealt with more quickly, without lowering their standard of care; resources can be freed up to treat the next patient; and cost-effectiveness can help to safeguard the incomes of those delivering care on the front line.

healthcare accounting

 

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