Sam Project 1 rough draft
Market Summary:
Randolph Health has, for the past several years, been operating at a financial loss in the
attempts to remain true to their mission, “to provide quality healthcare and foster health and
wellness in our communities.” (About Us | Randolph Health, 2018) This has proven difficult in
the current healthcare culture shift from volume-based healthcare to a value-based culture. This
shift that was originally the focus of many hospitals that depended on large patient volumes to
generate revenue, thus creating many inefficiencies and areas of wasteful spending leading to the
current issue of high health care spending.
With this shift of reimbursement and healthcare culture, many health care networks must
change their workflows to utilize efficiencies, in Randolph Health’s case, using the LEAN
methodology. To keep up with the growing demand for healthcare services while also providing
quality care has proven to be quite challenging and a difficult shift for many healthcare systems
to adopt. Previous views of many businesses and not just healthcare had a focus that changes
occur from the top down, however, with the utilization of Lean methodology it “should empower
front-line employees, providing them with the tools necessary to make improvements, while
simultaneously promoting a focus on the patient.” (Rotter et al, 2017)
Many of the challenges that have arisen from this culture shift have come in the form of
reimbursement based on outcomes versus based on volume. Due to medicine and the success it
has had, the life expectancy and the ability to combat many diseases and illnesses has increased
the average life expectancy and in combination with the large baby boomer generations reaching
retirement age, the demand for healthcare services has never been higher. The need for Lean
methodology to be incorporated into Randolph Health was a move in the positive direction for
the community that Randolph Health serves as well as a move in the right direction for
healthcare as a whole.
While Randolph Health service Randolph county there are many other hospital networks
in the surrounding area, specifically Cone Health and High Point Regional, that provide many of
the same services at Randolph. Since many of these competitors also utilize the Lean
methodology there is a need for adoption of similar strategies that Cone and High Point both
currently use. Randolph Health used Cone Health as a template and a reference for success with
the implementation of Lean in their system and hope to mirror much of the same success.
Market Growth
The current state of healthcare and the need for efficiencies is growing, there is a huge
