Date of Award

2018

Embargo Period

8-1-2024

Document Type

Dissertation

Degree Name

Doctor of Health Administration

College

College of Health Professions

First Advisor

Jillian B. Harvey

Second Advisor

Trudie F. Milner

Third Advisor

Ryan G. Garrison

Fourth Advisor

James S Zoller

Abstract

Industry experts agree the health care industry in the United States has been fraught with rising costs and wastes for many years. The purpose of this study was to investigate and examine the potential benefits of applying Lean methods to improve specimen transportation over long distances. Lean processing has been used in manufacturing for decades and has recently been adapted for use in health care. Lean addresses waste, efficiency, process flow, and bottleneck issues. Lean was selected over Six Sigma because Lean based projects are more straightforward, less costly to implement and increase the efficiency to reduce waste that may have an impact on the bottom line of the organization. While numerous peer-reviewed articles focus on the current costs of health care, Lean, change management, and transportation, less is known about the impact of Lean on specimen transportation. Using a case study approach, this work identified inefficiencies on transporting anatomic specimens from Atlanta to Brunswick, GA. It compared four Models that ranged from no change to the current process (Model 1) to setting up a satellite facility and flying (via Delta Cargo) the specimens to the laboratory (Model 4). The results showed each of the Models demonstrated different amounts of efficiency, waste, costs, and savings. Model 1 (retention of present process) was the least efficient and most expensive. Model 2 (using Delta Cargo to fly the specimens to the laboratory) provided greater efficiency with savings of more than $400,000. Model 3 (using FedEx and UPS) also showed excellent efficiency with potential savings of over $417,000. Model 4 (accessioning specimens at a satellite facility in Atlanta and flying them to Brunswick) had the best efficiency and showed an approximate cost savings of over $360,000. If the savings are extended to sales equivalency utilizing a net profit margin of 1.11% (the laboratory industry median), the annual revenue increase that would be required from sales to similarly affect the bottom line would be $36.9 million. Implementing and sustaining a Lean program will potentially return significant benefits with a decrease in costs and an increase in efficiency and bottom-line revenue.

Rights

All rights reserved. Copyright is held by the author.

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