Management of Variability Program
The high cost of health care places a great burden on the competitiveness of many major American manufacturing and other businesses. In response to cost-reduction pressures from corporate leaders, health care managers often respond in ways that negatively impact quality of care. Such responses fail to recognize a source of great waste in the health care delivery system: excessive variability in the processes used to provide care. The Management of Variability Program develops, implements, and evaluates methods to reduce this type of artificial management variability and better manage “natural” variability. The premise is that researching the reduction of process variability has as much potential for reducing costs and improving quality as approaches like cost-effectiveness analyses of new technologies, practice guidelines, and provider profiling. Its importance lies in the fact that individual institutions alone cannot support this type of research, even though its results will be of great benefit to individual institutions and the health care system as a whole.