According to this report in Healthcare Finance News, there are eight kinds of waste driving healthcare costs in this country: transportation, inventory, unnecessary motions, waiting, overproducing, processing waste, defects, and unused human potential.
The list was compiled by Marc Hafer, CEO of Simpler, who told Healthcare Finance News that tracking patients horizontally through a healthcare value stream changes the way you think about what’s value-added and what’s not:
"When you reconstruct patient flow through an experience at a clinic and you think horizontally... that's when you see all the waste there really is," Hafer said.
Our Perspective: We would tend to agree, as we detailed in our study citing $700 billion in waste that could be eliminated from the healthcare system. There’s no doubt that a fundamental shift in philosophy will have to occur before reformers can cut into this waste. However, there seems to be momentum building towards a consensus on both the root of the problem and how to go about fixing it. Perhaps change isn’t too far away…
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