Productivity: Industry vs. Health Care

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I don't know the source on the data, but I heard a hospital President today talking about his hospital's Lean journey. He said:

“Manufacturing productivity has increased 3% every year since 1980. In health care, we have LOST 2% productivity each year.”

He spoke passionately about the need for Lean in health care, for the sake of quality, for taking care of patients, and for stemming the increases in health care costs.

As he talked about the need for more health systems to adopt lean, he concluded with:

“Our children will be paying for our wasteful methods [if Lean isn't adopted more widely.”

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Mark Graban is an internationally-recognized consultant, author, and professional speaker who has worked in healthcare, manufacturing, and startups. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent book is the anthology Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also a Senior Advisor to the technology company KaiNexus. His latest book has been released as an "in-progress" book, titled Measures of Success.

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