Examples of Lean A/P or A/R in Hospitals?

    1
    5

    Got this question from a reader:

    After successful application of lean to clinical processes we are moving into the the finance/accounting transaction areas such as A/P and A/R and month end close and are finding a more difficult road to interpret lean applications. I noticed there was not much discussed in your lean book about the application in accounting transactions. Do you have any suggestions, books, examples of the application of lead principles to hospital accounting/finance transactions?

    You're right, transactional processes aren't covered that deeply in my book because there are already a number of good books and references about “Lean Accounting” and “Lean Office” out there. I believe these concepts and examples would translate pretty directly, as opposed to bringing factory floor concepts into a healthcare setting.

    I don't know which book is best, specifically. “Office Kaizen” was fine (read it a few years back) but I see lots of other books on the market.

    The “lean accounting” movement is often more about changing accounting rules to be more compatible with lean operations, but if you research that community, you might find some leads on making AR and AP more efficient.

    What recommendations to you have, blog readers? Anything specific to hospital accounting, or using Lean methods to make accounting processes better?

    Subscribe via RSS | Lean Blog Main Page | Podcast | Twitter @markgraban

    Please check out my main blog page at www.leanblog.org

    The RSS feed content you are reading is copyrighted by the author, Mark Graban.

    , , , on the author's copyright.


    What do you think? Please scroll down (or click) to post a comment. Or please share the post with your thoughts on LinkedIn – and follow me or connect with me there.

    Did you like this post? Make sure you don't miss a post or podcast — Subscribe to get notified about posts via email daily or weekly.


    Check out my latest book, The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation:

    Get New Posts Sent To You

    Select list(s):
    Previous articleNVA in the NBA — It’s "Value Added"-tastic?
    Next articleStarbucks Tests "Lean" Operations In Some Stores
    Mark Graban
    Mark Graban is an internationally-recognized consultant, author, and professional speaker, and podcaster with experience in healthcare, manufacturing, and startups. Mark's new book is The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation. He is also the author of Measures of Success: React Less, Lead Better, Improve More, the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, and the anthology Practicing Lean. Mark is also a Senior Advisor to the technology company KaiNexus.

    5 COMMENTS

    1. Lean efforts in accounts receivable and accounts payable are pretty common – at Rockwell Collins, we made some great improvements in the collection cycle and in organizing the payables process. There are also several references to improvements in a/r in healthcare – I’ve seen info from ThedaCare and Lean Healthcare West that show significant improvements in cash flow due to Lean activities.

    2. The revenue cycle is at a tipping point. With the implementation of hipaa transactions, e-commerce and work engines, the new process has the potential of reducing operational costs by 50%. There will always be current processes that can be tweaked but to garner significant savings the mantra needs to be a “no touch” environment..

    3. Lean Accounting is the application of lean principles to Finance and Accounting processes, including A/P and A/R.

      Jean Cunningham Consulting is a leader in applying these lean principles, providing lean education and kaizen facilitation which results in significant improvements over a 2 – 3 day period.

      Jean Cunningham’s first Shingo Award winning book, “Real Numbers” describes real-world experiences in applying lean to Finance and Accounting.

      In addition, we are offering a new workshop on Lean and Cash Collections – currently scheduled in Chicago and Indianapolis in April with more locations to follow.

      Please feel free to visit our web site at http://www.jeancunninghamconsulting.com for more information on Jean Cunningham Consulting’s service offerings.

      Janice Frampton
      Senior Lean Consultant
      Phone – 978-692-9150
      Mobile – 978-866-9812
      janiceframpton@comcast.net

    4. Dera sir
      if you please send me a scientific material on ” lean accounting” and practical examples ,because i am very interested in , and preparing for Phd

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    This site uses Akismet to reduce spam. Learn how your comment data is processed.