Malcolm Baldrige
National Quality Assurance
for Health Care
Joel Vallett
Slide Objectives
1.
2.
3.
4.
5.
6.
7.
8.
Understanding Baldrige for Health Care
Baldrige and Your Organization Exercise
What Makes Up Baldrige
How It Works
Baldrige in the Real World
Practice Exercise
Summary
Reading List/Appendix
Understanding Baldrige
• History
– 1980’s U.S. leaders wanted to improve quality
among American companies
– 1987 U.S. Congress established the Baldrige
award with the Malcolm Baldrige National
Quality Improvement Act of 1987
– Overall goal to increase competitiveness of
U.S. businesses not only within the country but
globally as well
Understanding Baldrige Cont.
• Present
– Baldrige Award has increased in scope
opening to the Health Care and Education
industries and then recently expanding to NonProfit/Government
– Over 288 Health Care companies applied over
the last 10 years to improve quality among the
industry
– 18 awards given each years to top businesses
Understanding Baldrige Cont.
• Winning the award
– Requirements and criteria for high performance
preset and judged by Baldrige examiners
– Winners are used as an effective benchmark for
other companies
– Feedback from Baldrige examiners almost as
valuable as winning the award
Baldrige and You
• Affinity Diagram
1. Have selected individuals within industry list
on sticky notes different issues that come from
dealing with the health care industry
2. As a group categorize the individual sticky
notes into a set number of themes or issues
3. Affinity diagram should have created a
hierarchy of issues that need improvement
More detailed instructions contained in notes
Baldrige and You Cont.
• Affinity Diagram Example
Problems
within Health
Care industry
Collecting
payments
Quality
doctors
Customer
satisfaction
Issues
Issues
Issues
Issues
Issues
Issues
Insurance
Baldrige and You Cont.
• Brainstorm
– How could filling out a Baldrige application
help you with these issues listed in the Affinity
Diagram?
What Makes Up Baldrige
• Purpose
– Help organizations achieve best-in-class levels
of performance
– Identify and recognize role-model organizations
– Identify and share best management practices,
principles, and strategies
What Makes Up Baldrige Cont.
• Process
1. Go to the Baldrige Performance Excellence
Program at
http://www.nist.gov/baldrige/index.cfm
2. Click on Publications from the tool bar and
select Award Application
3. A full Word Document of the application is
accessible and is ready to fill out
What Makes Up Baldrige Cont.
Baldrige
Receive applications
Stage 2
Consensus review
Stage 3
Site visit review
Stage 1
Independent review
Select for site visit?
Judges
Review and
recommend winners
Judges
No
Select for
consensus review?
Judges
No
Feedback
report to
applicant
Yes
Feedback
report to
applicant
Yes
No
Feedback
report to
applicant
Yes
Feedback
report
How it Works
• Stage 1
– Application received
– Examiners read and score applications
• Judges score on 7 categories seen on next slide
– Determine if applicant will continue to
consensus
How it Works Cont.
How it Works Cont.
• The scoring of responses to Criteria items
and Baldrige Award applicant feedback are
based on two evaluation dimensions: (1)
process and (2) results
– Process- categories 1-6
– Results- category 7
• Scorecard for evaluation on next slides
s
How it Works Cont.
• Stage 2
– Consensus Phase
• 5-8 examiners determine a consensus score for each
of the scoring items
• Every scoring item must have complete consensus
• Examiners determine if site visit is necessary
How it Works Cont.
• Stage 3
– Site Visit
• 4-6 examiners visit company for 2-3 days
• Examiners spend about next 2 days in hotel
evaluating and preparing site-visit report
– Winners are recommended to final judges
How it Works Cont.
• Return on Investment for doing Balridge
– Feedback- no matter how far your company
makes it through the different stages valuable
feedback is returned
– Feedback reports have become more useful for
improving overall management of processes
and systems within a company
Baldrige in the Real World
• Advocate Good Samaritan Hospital
– Advanced in the past 30 years from a 333-bed
community hospital to a nationally recognized
leader in health care
– Rev. $100 Million- $500 Million
– Features a Level I Trauma Center and a
certified Level III Neonatal Intensive Care Unit
– Top 10 Health System in the Nation
Exercise
• CapStar Case Study
– Go to QM463\2002_Capstar_Case_Study.pdf
or
http://www.nist.gov/baldrige/publications/archi
ve/upload/2002_Capstar_Case_Study.pdf
– Read through pgs.1-47 on CapStar Health Care
provided by the NSIT and answer the questions
on the next slide
Exercise
• Questions
– Analyze each of the Baldrige categories in the case and
identify the strategies associated with each?
– Compare each of these strategies with your companies.
How are they different how are they similar?
– What are you going to do different to improve your
companies strategies in each one of the Baldrige
categories
– How will this improve quality for your company?
Summary
• Malcolm Baldrige National Quality Award for Health Care established
in 2002
• Focus on improving quality among various industries in the United
States
• Baldrige Award winners used for benchmarks to help other companies
improve
• Award winner are nationally recognized for having higher quality and
have an increase in perceived value
• Other companies whether through application for the Baldrige award
or through benchmarking can evaluate their own processes and
improve
• Baldrige Award can be used in many different ways to benefit your
company
Reading List
*Goonan, Kathleen J., Patricia K. Stolz, and Joseph A. Muzikowski. Journey to
Excellence: How Baldrige Health Care Leaders Succeed. Milwaukee: ASQ
Quality, 2009. Print.
Hendricks, K. B., and V. R. Singhal. "Does Implementing an Effective TQM
Program Actually Improve Operating Performance? Empirical Evidence from
Firms That Have Won Quality Awards." Management Science 43.9 (1997):
1258-274. Print.
Ryan, Mary Jean. "From Five Sister with $5 to Baldrige." The Challenge to Be
Great: on Becoming Exceptional : SSM Health Care's Journey to Baldrige and
beyond. Milwaukee, WI: ASQ Quality, 2007. 1-5. Print.
*"Baldrige by Sector: Health Care." National Institute of Standards and
Technology. Web. 26 Mar. 2011.
<http://www.nist.gov/baldrige/enter/health_care.cfm>.
Foster, S. Thomas. Managing Quality Integrating the Supply Chain. 4th ed. Upper
Saddle River, NJ: Pearson Prentice Hall, 2007. Print.
* Highly recommended for study
