A conceptual framework to support hospitals to measure and realise financial benefits from process improvement programs: perspectives from Australia, USA and UK

ObjectiveThe objective of this research is to appraise current practice in hospitals against the 'Framework to achieve value in healthcare' (the Framework) and to identify additional contributory factors that support or hinder its application.MethodsA multi-site case study was undertaken with five hospitals in Australia, the USA and UK using purposeful sampling to identify hospitals to participate. Data collection took place between September and November 2022. The hospitals included in the study had Process Improvement (PI) programs of more than 5 years duration, with strong executive engagement and broad outcomes measurement, including financial benefits. All hospitals were acute public hospitals or private, not for profit.ResultsAll hospitals indicated current practice according to Steps 1-5 for some part of their PI programs. All hospitals indicated that they were more likely to include financial benefits measurement for activities aimed specifically at improving cost rather than reducing non-value adding activities or improving the value of clinical care. Step 5 (reinvestment of cost savings) of the Framework is dependent on the accomplishment of Step 4 (measurement and realisation of financial benefits) and the contributory elements are important in supporting hospitals to utilise the Framework.ConclusionsThe 'Framework to achieve value in healthcare' provides a practical guide for hospitals to reduce non-value adding activities, improve the value of clinical care and reduce costs. Further research is indicated to establish its reliability in hospitals in other countries and hospitals that do not have an established PI program. What is known about the topic? Hospitals are using Process Improvement (PI) methods to reduce activities that do not add value to the customer and reap financial benefits as a means of addressing the rising costs of health care. What does this paper add? Hospitals must employ methods to measure and realise financial benefits of PI activities if they are to intentionally reinvest savings in other activities, including the organisational bottom line. What are the implications for practitioners? Hospitals should consider the practices of the financial savings programs to learn how to apply financial measurement and capture to PI activities.