iSixSigma

Lean Methods Help Avoid Layoffs at Four Hospitals

Despite the common allegation that Lean improvement methods must lead to layoffs at healthcare systems, the reality is quite different at several leading hospitals, where Lean methods are actually saving or creating jobs.

Traditionally, without or before the adoption of Lean, healthcare organizations relied on layoffs and service reductions to reduce costs and attempt to balance budgets. Lean provides an alternative, where a strengthened commitment to the workforce is repaid with continuous quality improvement, better patient care and better financial performance for the organization.

Here are four examples of U.S. hospitals that practice some variation of the “no layoffs due to Lean” philosophy or policy.

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