H…ALTH CAR…
THIBODAUX REGIONAL
MEDICAL CENTER
PRODUCT OR SERVICE:
Located in Southern Louisiana, Thibodaux Regional Medical Center, a 149-bed acute care facility, includes a vast array of out-
patient and inpatient services, has a free-standing Cancer Center, a free-standing Outpatient Rehabilitation Center, a cardio-
vascular center, and several ancillary clinics.
SITUATION ANALYSIS:
Thibodaux Regional Medical Center’s primary objective was to maintain high levels of patient satisfaction. Quality of care
was the primary focus. As a non-profit, cost containment and market share gains were also highly desired outcomes. Six pri-
mary areas of focus were identified for improvement: Service, Finance, Quality, People, and Growth.
QUALITY PRACTICES:
Thibodaux Regional Medical Center focused primarily on clinical quality improvement, with a focus on leveraging the Deming
methodology. Some benefits were realized. In 2000, Six Sigma was launched, beginning with senior leadership sessions and
Green Belt training. Initially, six staff members were selected to be trained as Green Belts. Improvement projects were select-
ed based on their alignment to the hospital’s strategic plan. Four of the initial Green Belt projects selected, directly impact-
ed customer satisfaction. The approach enabled Thibodaux Regional Medical Center to build acceptance and accountability,
develop unique problem-solving skills, and link their efforts to well-defined organizational objectives. Their quality practices
through the application of Six Sigma.
RESULTS :
Account receivable projects focused on reducing net accounts received from 73.3 days to 62.5 days. This single effort
increased cash flow by $2 million per year. Inventory reduction of materials resulted in cost savings of $450,000 annually.
Medication management project focused on leveraging Six Sigma statistics and decreased defects per million opportunities
by 42%. Catheterization lab scheduling targeted improving physician satisfaction by increasing the number of cases that start
on time. As a result of Six Sigma, physician satisfaction improved by 20% after the improvement pilot phase launch. The cath
lab experienced an increase volume of 29% over the prior year. From a financial perspective, these additional improvement
procedures generated more than $2 million in incremental gross revenue.
CAS… ST U DY H .4