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PAPHR Lean savings among the lowest in Saskatchewan

Mar 5, 2015 | 6:03 AM

A recent audit on Saskatchewan’s Lean management initiative shows there is $125 million in projected savings and the Prince Albert Parkland Health Region (PAPHR) makes up only a small part of that number.

The information was collected in response to a report from the Provincial Auditor last December that said even the government couldn’t tell if Lean was saving money. 

Based on these numbers the PAPHR’s projected Lean savings is $25,735.  This is one of the lowest savings in the province.  The two bigger health regions, compared to the PAPHR’s, have much larger savings—the Saskatoon Health Region at $33,623,598 and $1,543,956 in the Regina Qu’Appelle Health Region.

CEO of the PAPHR Cecile Hunt said their work has focused on a variety of initiatives such as inventory management and many that can’t be given a monetary value.

“It is around increasing efficiency and avoiding cost and improving our capacity.  As an example, we’ve really focused on wait times, quality and patient safety,” she said.

One example of this is the dining experience at the Herb Bassett Home, she added.

“And that was about improving the residents’ experience and so there again, there is some difficulty in ascribing a cost to that, but we know day in and day out our residents are reporting improved satisfaction and better meal quality,” she said.

Another thing they’ve focused on was access in the out-patient mental health area.

“Having patients get an appointment as soon as they call in really has improved their access,” she said.

The PAPHR is currently working on anther phase of 3P planning for the Victoria Hospital.  Hunt said once that is done they will “likely, similar to other regions, probably be able to report future financial savings on capital projects if we have an approval down the road.”

Since the audit was released, NDP critics have been skeptical, saying the province is reaching on these numbers.

In a statement from Saskatchewan’s opposition NDP, it said the province is going all the way back to 2008 to find Lean savings. It stated $50,277,395 was saved for the ministry of health provincial lab, which the NDP said was a blood-saving program implemented with Lean before John Black came into the picture.

It also feels the Lean/3P projects aren’t real savings but rather “what the government claims is the difference in price between building a Lean and non-Lean health facility.”

When it boils down to it, the NDP said actual savings is less than $1 million, claiming John Black’s Lean program has cost the province about $100 million.

When Hunt was asked if she feels the $25,735 was a good reflection of what the PAPHR has saved, she said yes.

“Certainly the continuous improvement in our Lean journey is really about a continuous process and I think what we know today as a health system will continue to evolve and, you know, with focus on patient safety and better access for our patients and our long-term care residents I do think our improvements will continue,” she said.

Pauline Rousseau, executive director of the strategy and innovation branch at the ministry of health, said she’s happy with the PAPHR’s results.

“There’s variation across the participating organizations. In some cases it’s due to the fact that, as is the case in Saskatoon and Moose Jaw, they have some very large capital projects which we’ve done some Lean work on the design of the facility,” Rousseau said.

She agrees with Hunt that the initiatives the PAPHR focused on leaned toward patient and quality care improvements.

“The total benefit to this point is $125 million.  I think that speaks for itself but we are looking for the whole spectrum of results and are pleased to see what has been produced from P.A. in that front,” she said.

“Some savings are direct to the bottom line savings, some are ongoing, some are one time, others are productivity gains … these are all legitimate kinds of savings and they reflect different aspects of financial benefit.”

Results are accumulated by each of the participating organizations and consolidated.  Each has been signed off on and approved by the CFO in each organization.

-With files from Courtney Markewich

sstone@panow.com

On Twitter: @sarahstone84