Improvement Insights Blog
Hospital Costs a “Hungry Tapeworm on U.S. Economy” says Warren Buffett
I have been thinking for some time that someone would come along, start buying up hospitals and forcing them to adopt the Lean principles of Amazon and Six Sigma to achieve the “science and evidence” that Don Berwick has been challenging the IHI to adopt.
Warren Buffet has the money, but usually invests in “well-run” companies, not ones in trouble. An estimated half of all hospitals are in financial trouble (often because of the lack of Lean Six Sigma).
Bezos and Amazon have the operational efficiency needed in virtually all healthcare environments.
Dimon has a big bank.
They are all worried about the quality of healthcare and the rising costs. Together they may force a change that healthcare has been reluctant to embrace.
This means that every hospital has an opportunity to get ahead of this change or wait for Lean Six Sigma to be forced down its throat. You will not enjoy option number two.
