Global Healthcare Expenditure

Improved Essays
1.0 Chapter one: Introduction “As global healthcare expenditure soars, and as systems are increasingly required to deliver better care to more people using less resource, the challenge to explore the promises of lean thinking is compelling” (Young and McClean, 2009 p.309). In the United Kingdom (UK) for instance there was a serious rise in public healthcare spending from 3% in 1960 to 7.8% in 2010 (Pettinger, 2015). Although healthcare spending has falling as percentage of a GDP in the UK since 2010, the healthcare expenditure is still very high (Pettinger, 2015). Despite the risen expenditure, there has not been much improvement in patience care. In a report by Kings Fund, about the NHS in England, Professor John Appleby who is the chief …show more content…
In current literature on lean healthcare reports and application, the USA dominates by 57 per cent, with the UK 29 per cent, followed by Australia at 4 per cent (Papadopoulos et al., 2011 cites Brandao de Souza, 2009). A survey of US hospitals in 2009 reported that 53% of hospitals have implemented lean to some extent and 60% out of the 53% have implemented lean in ED (Holden 2011 cites American Society for Quality, 2009).
A typical example of successful lean implementation in the US is Virginia Mason Medical Centre in Seattle (Grove, Meredith, MacIntyre, Angelis and Neailey, 2010 cites Womack et al., 2005). Virginia Mason Medical Centre in Seattle has been using lean management principles since 2002 (Womack, Byrne, Fiume, Kaplan and Toussaint, 2005). Through waste elimination, Virginia Mason created more capacity in existing programs and practices so that planned expansions were scrapped, which saved significant capital expenses. This eliminated the need to purchase multi-million dollar additional facilities. $6 million for new surgery suites that were no longer necessary; $1 to $3 million for endoscopy suites that no longer needed to be relocated $1 million for an additional hyperbaric chamber that was no longer needed (Womack et al,
…show more content…
It also disentangles the various forms of waste and tackle their root causes (Jones and Mitchel, 2006). By so doing it improves the quality of delivery (Jones and Mitchel, 2006). There are usually better outcomes for patients such as more accessible care with shortened treatment time and reduced waiting (Poksinska, 2010).
Improve throughput
Lean implementation in healthcare improves patient throughput as such the same people, using the same equipment, find they are capable of achieving much more (Jones and Mitchel, 2006; Poksinka, 2010).
Improve staff

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