Let’s look at these statements.
In places, 80% of the energies of medical staff are busy handling 20% of the patients who complained of symptoms of Covid-19.
20% of the factors explain the slow vaccination rates in 80% of the countries.
There’s no surprise if you are in the medical business and have come across similar statements recently. They may be statistically inaccurate, but they are broadly true. These are examples of applications of the 80/20 Rule.
So what’s the 80/20 Rule?
The 80/20 rule states that approximately 80% of the consequences have their roots in 20% of the causes. Emphasising the approximate nature of the rule and taking away the numbers, we can derive a general statement.
Most of the consequences in any scenario have a few vital underlying causes.
The 80/20 rule, or Pareto Principle, derives its name from the Italian economist Vilfredo Pareto. It’s been around for over a century. However, the credit for introducing this rule to business management goes to Joseph Juran.
What’s the approach before applying the 80/20 rule in Medical Business?
The 80/20 rule is not a universal rule that is applicable everywhere and anywhere. Careless application of this rule can lead to wrong analysis.
However, in over eight decades since its introduction to business management, the 80/20 rule remains a favourite for business analysis. It applies to most scenarios.
The approach before applying the 80/20 rule in any business goes through reviewing the expenditure of time, money, and effort. These three factors decide the performance of any business. The medical business is no exception.
Let’s look at this scenario. On reviewing the past year’s records, the hospital management finds that:
- It’s 23% of the practitioners that handle 85% of the patients.
- Roughly 80% of the patients suffer from 20% of the diseases.
- 70% of the revenues are coming from 15% of the cases.
- 25% of the medical equipment demands and consumes 90% of the time and effort in repairing and replacement.
This list can be endless. However, it points that by addressing the vital few, the hospital can keep its best doctors happy and rationalise its functioning. By focusing on these few vital causes, the hospital can streamline its operations, increase efficiency and perform better. Improvement in performance means more profitable business!
How to apply the 80/20 rule for Maximising Medical Business Efficiency?
It strikes from the inside…
Involved medical practitioners, clinic managers, and hospital management know what calls for a review and when. They get a feeling of serious discord between the investment of time, money, and effort and the results.
There’s no alternative to a thorough review, analysis, and reporting. However, such engaged medical professionals can often see the 80 and the 20 from their experience. Noting down the observations is the first step in applying the 80/20 rule. This can lead to preparing the questions to verify what they feel and preparing for elaborate analysis.
There’s no alternative to Brainstorming
Medical establishments carry out thorough performance reviews annually. What about the issues that require urgent attention in the middle of the year? Brainstorming is the simplest way out. Medical professionals need to think hard about the questions like,
- What consumes their time the most?
- What conditions and diseases are they fighting the most?
- What medicines and tests are they prescribing the most?
- Is there discord between the investments and needs?
- Which doctors are the busiest?
- Which surgeries does the hospital perform the most?
Answers to such questions can redirect the resources without waiting for the year-end review. Finding out the vital causes that lead to most consequences by percentage helps in urgent functional optimisation.
Using Visualisations for Analysis
We are living in a world of data visualisation. Starting with the cause-effect fishbone diagrams for qualitative analysis will help outline the flaws in individual management processes and practices.
Pareto Charts are great for finding the frequencies of flaws and their impact. It helps outline the major causes.
The last step is to determine the primary cause that’s harming the business’ performance the most. Problematise around this cause and chalk out a resolution strategy. You can eliminate at least 50 to 75% of the impediments in improving your medical business performance this way.
Making it Easier
You can rely on tools like Kpeyes to derive actionable data for maximising efficiency. In-depth reports on time and space use, patient accounts, finances, investments, frequent diseases, and marketing campaigns can be extremely beneficial. Let the 80/20 rule set the foundation and leave the rest on Kpeyes. Improve your medical business performance coming fiscal.