Malcolm BaldrigeNational Quality Assurance

for Health Care

Joel Vallett

Slide Objectives1. Understanding Baldrige for Health Care

2. Baldrige and Your Organization Exercise

3. What Makes Up Baldrige

4. How It Works

5. Baldrige in the Real World

6. Practice Exercise

7. Summary

8. Reading List/Appendix

Understanding Baldrige

• History– 1980’s U.S. leaders wanted to improve quality

among American companies– 1987 U.S. Congress established the Baldrige

award with the Malcolm Baldrige National Quality Improvement Act of 1987

– Overall goal to increase competitiveness of U.S. businesses not only within the country but globally as well

Understanding Baldrige Cont.

• Present– Baldrige Award has increased in scope opening

to the Health Care and Education industries and then recently expanding to Non-Profit/Government

– Over 288 Health Care companies applied over the last 10 years to improve quality among the industry

– 18 awards given each years to top businesses

Understanding Baldrige Cont.

• Winning the award– Requirements and criteria for high performance

preset and judged by Baldrige examiners– Winners are used as an effective benchmark for

other companies– Feedback from Baldrige examiners almost as

valuable as winning the award

Baldrige and You

• Affinity Diagram 1. Have selected individuals within industry list

on sticky notes different issues that come from dealing with the health care industry

2. As a group categorize the individual sticky notes into a set number of themes or issues

3. Affinity diagram should have created a hierarchy of issues that need improvement

More detailed instructions contained in notes

Baldrige and You Cont.

• Affinity Diagram ExampleProblems

within Health Care industry

Collecting payments

Issues

Issues

Issues

Quality doctors

Issues

Issues

Customer satisfaction

Issues

Insurance

Baldrige and You Cont.

• Brainstorm– How could filling out a Baldrige application

help you with these issues listed in the Affinity Diagram?

What Makes Up Baldrige

• Purpose–  Help organizations achieve best-in-class levels

of performance – Identify and recognize role-model organizations – Identify and share best management practices,

principles, and strategies

What Makes Up Baldrige Cont.

• Process1. Go to the Baldrige Performance Excellence

Program at http://www.nist.gov/baldrige/index.cfm

2. Click on Publications from the tool bar and select Award Application

3. A full Word Document of the application is accessible and is ready to fill out

What Makes Up Baldrige Cont.Baldrige

Receive applications

Stage 1Independent review

Select forconsensus review?

Judges

Stage 2Consensus review

Select for site visit?Judges

Stage 3Site visit review

Review and recommend winners

Judges

Feedback report to applicant

Feedback reportYes

No

Feedback report to applicant

No

Yes

Yes

Feedback report to applicant

No

How it Works

• Stage 1– Application received– Examiners read and score applications

• Judges score on 7 categories seen on next slide

– Determine if applicant will continue to consensus

How it Works Cont.

How it Works Cont.

• The scoring of responses to Criteria items and Baldrige Award applicant feedback are based on two evaluation dimensions: (1) process and (2) results – Process- categories 1-6– Results- category 7

• Scorecard for evaluation on next slides

s

How it Works Cont.

• Stage 2– Consensus Phase

• 5-8 examiners determine a consensus score for each of the scoring items

• Every scoring item must have complete consensus• Examiners determine if site visit is necessary

How it Works Cont.

• Stage 3– Site Visit

• 4-6 examiners visit company for 2-3 days• Examiners spend about next 2 days in hotel

evaluating and preparing site-visit report

– Winners are recommended to final judges

How it Works Cont.

• Return on Investment for doing Balridge– Feedback- no matter how far your company

makes it through the different stages valuable feedback is returned

– Feedback reports have become more useful for improving overall management of processes and systems within a company

Baldrige in the Real World

• Advocate Good Samaritan Hospital– Advanced in the past 30 years from a 333-bed

community hospital to a nationally recognized leader in health care

– Rev. $100 Million- $500 Million– Features a Level I Trauma Center and a

certified Level III Neonatal Intensive Care Unit– Top 10 Health System in the Nation

Exercise

• CapStar Case Study– Go to QM463\2002_Capstar_Case_Study.pdf

or http://www.nist.gov/baldrige/publications/archive/upload/2002_Capstar_Case_Study.pdf

– Read through pgs.1-47 on CapStar Health Care provided by the NSIT and answer the questions on the next slide

Exercise• Questions

– Analyze each of the Baldrige categories in the case and identify the strategies associated with each?

– Compare each of these strategies with your companies. How are they different how are they similar?

– What are you going to do different to improve your companies strategies in each one of the Baldrige categories

– How will this improve quality for your company?

Summary• Malcolm Baldrige National Quality Award for Health Care established

in 2002• Focus on improving quality among various industries in the United

States• Baldrige Award winners used for benchmarks to help other companies

improve• Award winner are nationally recognized for having higher quality and

have an increase in perceived value• Other companies whether through application for the Baldrige award

or through benchmarking can evaluate their own processes and improve

• Baldrige Award can be used in many different ways to benefit your company

Reading List*Goonan, Kathleen J., Patricia K. Stolz, and Joseph A. Muzikowski. Journey to

Excellence: How Baldrige Health Care Leaders Succeed. Milwaukee: ASQ Quality, 2009. Print.

Hendricks, K. B., and V. R. Singhal. "Does Implementing an Effective TQM Program Actually Improve Operating Performance? Empirical Evidence from Firms That Have Won Quality Awards." Management Science 43.9 (1997): 1258-274. Print.

Ryan, Mary Jean. "From Five Sister with $5 to Baldrige." The Challenge to Be Great: on Becoming Exceptional : SSM Health Care's Journey to Baldrige and beyond. Milwaukee, WI: ASQ Quality, 2007. 1-5. Print.

*"Baldrige by Sector: Health Care." National Institute of Standards and Technology. Web. 26 Mar. 2011. <http://www.nist.gov/baldrige/enter/health_care.cfm>.

Foster, S. Thomas. Managing Quality Integrating the Supply Chain. 4th ed. Upper Saddle River, NJ: Pearson Prentice Hall, 2007. Print.

* Highly recommended for study