Healthcare Value Network Members Share New Quarterly Results

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Lean Principles and Peer-To-Peer Learning Improve Patient Value

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Continuing in their commitment to transparency, members of the Healthcare Value Network (HVN) have released their latest quarterly results on the power of lean principles to drive improvement in care quality and value.

The HVN is part of the ThedaCare Center for Healthcare Value and consists of a peer-to-peer learning community of approximately 60 healthcare organizations across the United States and Canada. “The improvements demonstrated in these results have significant positive impact on health systems and help patients see the change and waste reduction being done to provide better care on their behalf,” said Director Mike Stoecklein.

Highlighted member results for this quarter include:

MEMORIALCARE (Fountain Valley, CA)

  •     Decreased average direct variable cost from $8,356/case in 2012 to $7,033/case in 2014. This is a 16% improvement that equated to $17.7 million in savings.
  •     Decreased average length of stay from 4.23 days in 2012 to 3.84 days in 2014. This is a 9% decrease that equated to 21,500 days freed up.
  •     Decreased “Harm Across The Board”* from 1.2% in 2012 to 0.65% in 2014. This is a 45% decrease.
  •     Saved $13.1 million from lean improvements in fiscal year 2015 (improvements in labor time, materials, space, length of stay and throughput), bringing the total cumulative savings to $136.4 million saved since embracing lean practices in 2007.
  • HEN & CalHEN metric which includes: adverse drug events for Warfarin, CAUTI-ICU, CLABSI-ICU, early elective delivery, falls with injury, pressure ulcers, surgical site infections, VAPs and blood clots.


  •     Increased hand hygiene compliance from 82% to 93% and reduced hospital acquired infections and surgical site infections by 26% in the current fiscal year.
  •     Decreased the average time from sequential compression device (SCD) order placed to SCD applied from 14 to 3.70 hours to reduce preventable hospital acquired venous thromboembolism (VTE). This represents a 74% reduction in actionable time for application and documentation of SCDs.
  •     Saved a daily average of 28 hours of room time in the Emergency Department since beginning a new process in June 2015 of a “results pending area” for patients who are clinically stable and waiting for lab results and/or imaging studies to be completed.
  •     Removed $17,658,302 of waste from the current fiscal year to-date through the use of unit-based quick and easy kaizen and four-step problem solving.


  •     Decreased postpartum hemorrhage rate, from 6% in November 2013 to 3% through May 2015, a 50% decrease which has been sustained.
  •     Achieved a 20% decrease in hospital-acquired conditions (HACs) from 14.2 per month (calendar years 2011-2012) to 11 per month (as of April 2015). This includes NHSN definition change period, which increased CLABSI rates for all centers.
  •     Achieved a 50% decrease in patient serious safety event rate from 1 SSE/10 days (September 2013), to 1 SSE/21days as of May 2015. This equates to an estimated cost avoidance of $6,160,000 over this time period.
  •     Decreased chronic lung disease rate in “micro-premature babies” from 34.2% (calendar years 2009-2013) to 18.8% (Sept 2014 through present day).
  •     Increased clinical process compliance (composite score related National Patient Safety Goals including: blood transfusion, central line dressing change, central line insertion, hand hygiene, HAPU prevention, lab raw, medication administration, trace the line, urinary catheter insertion and urinary catheter maintenance). Composite score improved from 78% (April 2013) to 91% (present day).
  •     Annual reduction in legal costs (3-year average of $717,000) through OB simulation training event (a one-time investment of $500,000).

“These results are great examples of how health systems across the country are implementing lean management and experiencing real change,” said John Toussaint, MD, CEO of the Center.

Established in 2009, the HVN was founded by the ThedaCare Center for Healthcare Value and the Lean Enterprise Institute. It is now an integral part of the Center and its healthcare mission.

The ThedaCare Center for Healthcare Value is an education institute that believes we must have three essential elements for sustainable change in healthcare: delivery of care designed around the patient, payment and incentives based upon value and outcomes, and transparency of performance (quality and cost) throughout the healthcare system. Founded in 2008 and headquartered in Appleton, Wisconsin, we are a small not for profit with a big mission to help change the healthcare industry. Learn more at:


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Nicole Singer
Bottom Line Marketing
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