Time‐based analysis of total cost of patient episodes: A case study of hip replacement

Abstract

Purpose

Healthcare in the public and private sectors is facing increasing pressure to become more cost‐effective. Time‐based competition and work‐in‐progress have been used successfully to measure and improve the efficiency of industrial manufacturing. Seeks to address this issue.

Design/methodology/approach

Presents a framework for time based management of the total cost of a patient episode and apply it to the six sigma DMAIC‐process development approach. The framework is used to analyse hip replacement patient episodes in Päijät‐Häme Hospital District in Finland, which has a catchment area of 210,000 inhabitants and performs an average of 230 hip replacements per year.

Findings

The work‐in‐progress concept is applicable to healthcare – notably that the DMAIC‐process development approach can be used to analyse the total cost of patient episodes. Concludes that a framework, which combines the patient‐in‐process and the DMAIC development approach, can be used not only to analyse the total cost of patient episode but also to improve patient process efficiency.

Originality/value

Presents a framework that combines patient‐in‐process and DMAIC‐process development approaches, which can be used to analyse the total cost of a patient episode in order to improve patient process efficiency.

Citation

Peltokorpi, A. and Kujala, J. (2006), "Time‐based analysis of total cost of patient episodes: A case study of hip replacement", International Journal of Health Care Quality Assurance, Vol. 19 No. 2, pp. 136-145. https://doi.org/10.1108/09526860610651672