Five steps every hospital CEO should start taking todayInsights series - issue 1: Reducing unwarranted variations using precision medicine

Brent James discusses the role of executives in a healthcare delivery system.

In this white paper, Brent James, MD, MPH, states that 25% of hospital costs arise from waste caused by unwarranted variations. So what can hospital executives do about it?

This guide introduces leadership paradigms for reducing unwarranted variations. It suggests a novel five-step approach and lists key executive actions for sustainable and positive change. The proliferation of precision medicine means that CEOs now have tools and processes to address the problem in a thoughtful and successful way.

This thought leadership paper is part of the Siemens Healthineers Insights Series - the New Normal. It provides ideas and practical solutions on 'Innovating personalized care'

  • Unwarranted variations are one of the biggest areas in which hospitals can improve outcomes while reducing waste-creating savings that can be reinvested in the hospital.
  • Four key sources of unwarranted variations have been identified: craft of medicine, complexity of medicine, diagnosis variations, and reduced transparency.
  • The CEO's role is inevitable and critical; CEOs have a key, unique role to play in achieving the high value of reducing unwarranted variations.
  • A five-step approach leads to sustainable change.

Brent James

Brent James, MD, MPH, is globally renowned for his work on improving the quality of patient care while reducing the cost of treatment. He is a member of the National Academy of Medicine in the United States. James also holds faculty appointments at the Stanford University School of Medicine, the University of Utah Eccles School of Business, the T.H. Chan Harvard School of Public Health, and the University of Utah School of Medicine.

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