Community Medical Associates Case Study 1. Explain how CMA used the four princip

ID: 462545 • Letter: C

Question

Community Medical Associates Case Study

1. Explain how CMA used the four principles of lean operating systems to improve performance.

2. Using the information from the case, sketch the original paper-based value chain, and compare it to a sketch of the modern electronic value chain that uses a common database. Explain how the performance of both systems might compare.

3. What is the total annual record retrieval coast savings with the old (paper-based) versus new (electronic) system?

4. Does this CMA improvement initiative have any effect on sustainability? If so, how? If not, why?

5. Using lean principles, can you simultaneously improve speed and quality while reducing waste and costs? What are the trade-offs? Explain your reasoning.

Community Medical Associates Case Study Community Medical Associates (CMA) is a large healtinformation was maintained in a separate database. The care system with two hospitals, 25 satellite health cepatient's medical chart was part paper based and part ters, and 56 outpatient clinics. CMA had 1.5 ml electronic. The paper medical file could be stored at outpatient visits and 60,000 inpatient admissions the pre- the hospital, centers, or clinics. Nurses handwrote their vious year. Just a few years ago, CMA's health care delivnotes on each patient, but their notes were seldom input ery system was having significant problems wit quaityinto the patient's medical records or chart of care. Long patient waiting times, uncoordinated clini- cal and patient information, and medical errors plaguedlog off and access another system for radiology, then log the system. Doctors, nurses, lab technicians, managers, off and access the CMA pharmacy system to gain an and medical students in training were very aggra ated with the labvrinth of forms, databases, and communication links. Ac counting and billing were in a situation of constant confusion and constantly correcting medibills and insurance payrnents. The complexity of the CMA nformation and communication system overwhelmed its people. TE We mus access one database for lab results, thern integrated view of the patient's heat I I ant find the patient's records witi five minutes or so, I to abandon my searelh and tell the patient to wait or make another appointment," said one doctor. The doctor continued Yhave to abandon the patient because you have to have Prior to redesigning its systems, physicians were faced with a com- Today, CMA uses an int plex array of appoint- Today, CMA uses an integrated operating system that consolidatesy ments and schedules ino50 CMA databases into one. you truly can diagnose and help. If you don't abandon the patient you might make clini- cal decisions about the patient's health without array of appoint order to see patients in the hospital, centers, and clinics. For example, an elderlyhaving a complete set of information. Not having all the patient with shoulder p ud get an X-ray at the elinicmedical information fast has a direct impact on quality but have to set up an appointment for a CAT scan in theof care and patient satisfaction." hospital. Furthermore, the patient's blood was sent to an off-site lab, and physician notes were transeribed fomha consolidates over 50 CMA databases into one tape recorders. Radiology would read and interpret the Health care providers in the CMA system now have ac- X-rays and body scans in a consultant report. Past and cess to these records through 000 computer terminals. present medication records were kept in the hospital and Using many levels of security and some restricted data- offsite pharmacies. Physicians would write paper preba patient information is accessible in less than scriptions for each patient. Billing and patient insurance two minutes. For example, sensitive categories of patient Today, CMA uses an integrated operating system

Explanation / Answer

1). In this case we see that CMA used data integration techniques to reduce the cost of process & data collections along with reduction in time. Company first analysed the problems faced during pervious scenario along with possible problem generation and process bottlenecks. Then it used electronic method of data storage with consolidation of data to help every authorized personnel to access it anywhere with hassle free and cost effective method.

Principles used:
Analysis of problem
Probable solution
Use of Electronic medium to reduce time & cost
Continuous perfection of data delivery and storage

2). Paper Vrs Electronic storage

PAPER

ELECTRONIC

Large amount of paper uses

Least amount of paper uses

Data directory can be viewed only by changing the domain of process

Single directory helps in uninterrupted view of data

Too much time consuming with less yield rate

High speed real time data availability with least margin of error

Record keeping costly and labour intensive

Record keeping less costly and no labour intensive

3). Total Annual record savings will be:

Previous cost of data storage: 1500000*4.46= $6690000
New cost of storage= 1500000*1.32= $1980000
Total savings= $(6690000-1980000) = $4710000

4) This improvement has certainly helped in sustainability as the use of paper work has been reduced along with related wastage. This would help in reduction of green house effect and also will reduce the wastage of time and productivity of Doctors & Nurses.

5). Yes, we can improve speed and quality while reducing waste and costs. As seen in the case these things are feasible but with a process cost associated with it. In this case we have no idea of cost involved in setup of such data storage facilities and upgrade in system software(SAP or ERP). This cost is considered deciding factor while going for an upgrade in MIS or present network. If the investment is helpful in increasing profit margin along with productivity then its worth going.