Using severity-adjusted control charts to eliminate clinical variation, drive lower costs and improve care

This paper discusses how consistent, accurate and timely use of control charts can reduce inappropriate clinical variation, which is one of the biggest drivers of healthcare costs. For US hospitals that have implemented traditional cost transformation initiatives to cover operating losses, addressing clinical variation is one of the few remaining options for achieving further cost reductions. Control charts, a tool developed to streamline manufacturing processes in the 1920s, can be adapted to the healthcare environment to address poor clinical outcomes and inefficiencies that result in care variations. When implemented using a bottoms-up approach that starts at the patient encounter level, control charts provide data-driven evidence of cost savings and quality improvement that can be achieved through adherence to evidence-based guidelines. With access to these data, care teams are prompted to adhere to clinical protocols and be mindful of how they compare with peers and the national benchmark, and executive teams can support a push for greater accountability and results.