Quality Focus Good for Business

Abstract:Premier Inc., a San Diego-based healthcare alliance, is a 2006 recipient of the Malcolm Baldrige National Quality Award (MBNQA) in the service category. The firm credits employee involvement, experience gained while earning a state quality award, and the leadership of its CEO for its success. Central to its success was a five-step process management and improvement system that combines several quality methods. In addition to receiving the Baldrige award, Premier has seen its pre-tax operating income increase from $140 million in 2002 to $223 million in 2006, and savings and cash returns to member hospitals have increased from $180 million to $804 million during the same period. Systematic approaches to employee career development and internal education programs have resulted in employees remaining loyal to Premier, often moving up within the organization. A sidebar article responds to recent controversy surrounding the awarding of the MBNQA to …

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