Process Excellence – Cost Savings and ROI in Health Care

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Process Excellence – Cost Savings and ROI in Health Care

According to a new Association for Information and Image Management (“AIIM”) of Silver Spring, MD study, the enterprise is not taking maximum advantage of business process management concepts.

Surprisingly, only 3% of companies felt that they had achieved “process excellence.” AIIM Vice President and report co-author, Carl Frappaolo states: “This is disappointing … Despite decades of market attention on process excellence—from the manufacturing industry, into the world of “knowledge workers”, and across all industries—it’s been a long, slow journey, and many have yet to embark on the journey. The damage lies in the fact that processes are the core of any functioning organization.”

Some of the benefits of process excellence initiatives include:

  • Customer retention and satisfaction, as well as better competitive advantage are directly linked to use of business-process management practices.
  • ROI via change. According to Tower Group, business that make changes based on Business Process Modeling (BPM), will see visible ROI from improved and faster operations, better employee productivity, and the ability to reach strategic objectives.
  • Efficiency gains by mapping and gapping. Simply mapping and closing the process gaps between current practices and those desired can provide 30% of the operational efficiency that a company gains through the BPM initiative.

Important ingredients for operational efficiency include:

  • Business and IT Alignment – Business, technology, strategies, and resources must be aligned to achieve results.
  • Best-Practices Measurement – Metrics, methods, and frameworks to help you know that change management is helping to achieve business goals.
  • Process Change and Innovation – Enabling the transition up the ladder of competency to CMM, ITIL or other measures fundamentally means working with people and helping them see a better way to work..
  • Extending Intellectual Capital – Intellectual capital is the real wealth of organizations and this is the bottom line with Business Process Modeling (BPM) – managing people more effectively for Organizational Excellence.
  • Management’s commitment and leadership are key drivers for successful BPM. Technology can’t replace this.

Is your company taking advantage of business process management concepts and reaching toward excellence?


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By | 2017-05-04T04:07:12+00:00 April 1st, 2009|BPM, business process modeling, Innovation|0 Comments

About the Author:

Michael is Managing Partner & CEO of No World Borders, a leading health care management and IT consulting firm. He leads a team that provides Cybersecurity best practices for healthcare clients, ICD-10 Consulting, Meaningful Use of Electronic Health Records. He advises legal teams as an expert witness in HIPAA Privacy and Security, medical coding and billing and usual and customary cost of care, the Affordable Care Act and benefits enrollment, white collar crime, False Claims Act, Anti-Kickback, Stark Law, Insurance Fraud, payor-provider disputes, and consults to venture capital and private equity firms on mHealth, Cloud Computing in Healthcare, and Software as a Service. He advises self-insured employers on cost of care and regulations. Arrigo was recently retained by the U.S. Department of Justice (DOJ) regarding a significant false claims act investigation. He has provided opinions on over $1 billion in health care claims and due diligence on over $4 billion in healthcare mergers and acquisitions. Education: UC Irvine – Economics and Computer Science, University of Southern California – Business, Stanford Medical School – Biomedical Informatics, Harvard Law School – Bioethics.

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