Impact of lean six sigma at pharmacy unit on hospital profitability before and during Covid-19 pandemic

Abstract

Purpose

The purpose of this paper is to compare the impact of lean six sigma (LSS) implementation carried out in a pharmaceutical unit on the profitability of outpatient and inpatient care before and during the Covid-19 pandemic.

Design/method/approach

The data were analyzed descriptively to see the development patterns in four periods: before implementation, during the implementation before the pandemic, during the pandemic and during the enforcement of new normal, in general, and by the length of stay (LOS).

Findings

The inventory purchase in the pharmaceutical unit dramatically decreased after implementation even during the pandemic and new normal wherein the pre-pandemic it decreased by 27%, during the pandemic 29% and in the new normal 37% compared to pre-LSS. The hospital deficit decreased after implementation before the pandemic by 26% and during the pandemic by 10% from the pre-LSS time. However, during the new normal, the deficit increased by 29%, indicating a diminished effect of LSS on the hospital profits.

Research limitations/implications

This research raised the possible implication that the implementation of LSS needed to be carried out in the entire hospital to have a large effect, especially on the inpatient care and long-term care installations.

Originality/value

This research provided empirical evidence regarding the effect of the Covid-19 pandemic on the ability of LSS at the unit level to provide efficiency at the unit level and the entire hospital at various levels of LOS.

Citation

Iswanto, A.H. (2021), "Impact of lean six sigma at pharmacy unit on hospital profitability before and during Covid-19 pandemic", International Journal of Lean Six Sigma, Vol. 12 No. 4, pp. 718-743. https://doi.org/10.1108/IJLSS-10-2020-0182