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Six Sigma at Express Scripts

At the Bank of America, Health Care Conference 2006 in May, Express Scripts gave a presentation that included a few slides about their Lean Six Sigma program.

Their value proposition: “To reduce pharmacy costs, without compromising health outcomes, while maximizing patient satisfaction.”

Lean and Six Sigma together are part of how they are giving “value” to that proposition. In a recent Lean event a group achieved an 83% improvement in a floor space reduction exercise as well as eliminated 30 steps in a 68 step process. Now that’s improvement.

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Dan Feliciano

No where in the slides is a mention of reduced healthcare costs!
I can see where their costs can potentially be reduced by their projects. Have they realized the savings? Probably not. Unless they get rid of the cost associated with the floor space improvements, they haven’t saved Jack! And no ones healthcare costs are being reduced.
There is too much BS cost savings being reported by Six Sigma professionals.
Fewer than 25% of Six Sigma projects I have reviewed actually have reduced actually expenses. The rest of the savings were calculated against exaggerated budgets and provide capacity for company growth (that is rarely achieved).

Ashish Kumar

Useful post!!!!!!

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