Article Abstracts

Rx for Excellence
by Susan E. Daniels

SSM Health Care (SSMHC), the first healthcare winner of the Malcolm Baldrige Award, has been showing the world that a focus on continuous improvement can help the ailing healthcare sector. SSMHC operates as a private, not-for-profit system that owns, manages or is affiliated with 21 hospitals in the Midwest. Other services include physician and nursing practices, and home and hospice care.

Although SSMHC was one of the first healthcare organizations to implement continuous quality improvement (CQI) throughout its entire system, its effort plateaued after five years. Visits with Baldrige manufacturing winners convinced management that the Baldrige criteria offered the best route. SSMHC facilities began receiving state quality awards while waiting for the time when healthcare organizations would become eligible for Baldrige. Meanwhile, the application process and feedback kept the CQI process moving ahead. Perseverance paid off with the Baldrige award in 2002. From a business standpoint the effort has been worthwhile, resulting in a $56 million improvement in operating margins that enable the system to pursue continued investment and growth opportunities.

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