The Impact of Lean Implementation and Board Composition on Healthcare Outcomes

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Abstract

This study examines the relationship between lean implementation and healthcare outcomes, as well as the relationship between board composition and healthcare outcomes. Using a sample of lean hospitals, we find that hospitals with lean implementation in all areas tend to have higher patient satisfaction, and higher quality of care in terms of Penumonia and Stroke. In regard to board independence, we find positive but not statistically significant relationship between degree of board independence and patient satisfaction / quality of care, suggesting that the degree of board independence has yet to bring any significant increase in patient satisfaction or quality of care. In regard to physicians involvement on the board, we find that lean hospitals with physician on the board tend to have higher patient satisfaction, and higher quality of care in terms of HeartFailure and Pneumonia. To the best of our knowledge, this study is one of the first studies that empirically investigate the relationships between board composition and healthcare outcomes in lean hospitals using archival data. Moreover, this study sheds light on how governance mechanisms can influence patient satisfaction and quality of care, and provides important implications for lean implementation practices as well as boardroom practices.

Authors

• Hassan Hassab-Elnaby, University of Toledo

• Amal A Said, University of Toledo

• Huilan Zhang, Shippensburg University