With margins shrinking, cutting waste can be a boon to the bottom line.
Practices across the country are feeling the squeeze of tightening margins and decreased capacity to see patients. Many see the only way to survive is through making cuts, but adopting a lean management style and cutting waste could be the secret weapon.
Lean management and effectively cutting waste was the main topic of a portion of an MGMA Leaders Conference 2023 session presented by Ron Menaker, EdD, FACMPE, of the Mayo Clinic.
“Waste is something that does not add value,” he said. “Effectively waste is anything that your customer is unwilling to pay for.”
According to Menaker, when practice leaders look at waste, they are mainly looking at seven different places where there is waste: