LEAN in Claims Management

Apr 29, 2011

LEAN - a set of ideas and an approach to make processes perform better. Designed by Toyota when they were entering the US Market, with the idea to get the most possible value out of everything they have while consuming the least amount of resources. Toyota focused on eliminating wasteful activity that does not clearly benefit the customer.

We've intereviewed Guy Parsons, a founding member of Lean Enterprise Institute, on his experience in applying LEAN strategies to Claims Management, bringing you the first in our 2-part series.

First, does Lean apply to non-manufacturing processes? 
"There have been huge initiatives in Healthcare, Insurance, and Software Development; any work process where time to complete work matters. For most processes, waiting and rework time far exceeds the time spent creating value for the customer."  

What are your experiences with the insurance industry?
"People in the insurance industry take well to applying these ideas because they are in an industry with so many requirements and regulations.  Processes have often been geared toward that goal, rather than customer value and experience.  Therefore, they're used to following processes, so they understand standard process and are eager to reinvent the work.   So much of their jobs has focused on work process. Identifying and eliminating the causes in waste and delays provide an opportunity for work flow improvement.

Typical Team Results: Claims can flow through in half the time with new systems; with increased staff satisfaction, and higher quality. 

Because of the focus on eliminating barriers to good work flow, the improved systems deliver improved Quality, Quantity and Cost at the same time.  Insurance industry executives are always happy when a process can be improved in all three categories."

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