Controlling Hospital Equipment Costs with Frontline Employee Engagement

Controlling Hospital Equipment Costs with Frontline Employee Engagement

02-Mar-2017 Mike Pecoraro Lean Healthcare Download

Performance Snapshot Preview: A frontline team of hospital employees saved more than $60,000 per year for their community hospital using an innovative team engagement process that put their ideas into action in less than 60 days.


As part of an organization-wide initiative to reduce operating costs, the hospital’s COO asked a number of employee teams to investigate savings opportunities in supply-cost areas such as rental equipment.

Team Engagement Strategy

A team of employees, comprised of facilities management, finance and patient service department reps, was assembled to investigate opportunities and implement solutions using Rapid Action, an “all in one” team engagement toolkit for accelerating results.

Rapid Action Project Charter

How can we better utilize hospital-owned mobile equipment and better manage the leasing of rental units in order to reduce overall spending on equipment?

Sample of Solutions Implemented

  1. Implemented new procedures to remove all mobile equipment from unused patient rooms and ensure availability of units.
  2. Labeled all equipment as “owned” (green tag) or “rental” (red tag) and educated hospital staff on benefits of using owned equipment.
  3. Established central depot for all unused mobile equipment and new procedures for requesting and returning equipment while maintaining an accurate inventory count at all times.
  4. Identified excess and obsolete equipment for termination of lease, disposal or replacement.

Rapid Action Team Results


savings from return of unnecessary rental equipment


improved utilization of owned equipment


recapture from sales of excess/obsolete owned equipment

65 days

cycle time from team launch to wrap-up

Leadership Comment

"While there are no doubt bigger expense lines in our budget, the cumulative savings from our Supply Cost Rapid Action Teams is a difference maker and many times worth the investment." – Hospital COO

Learn more about the Rapid Action Toolkit

Are you interested in accelerating results and increasing engagement from your organization’s change management and continuous improvement initiatives? Take a look “inside the box” of the most reliable process available for rapid, team-based improvement.

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Rapid Action Team Engagement Toolkit

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