Do the Right Thing with Patient Safety…the Money Will Follow

Business Wire, June 23, 2009

--Patient Safety Technology and Lean Engineering Improve Bottom Line for Signature Hospital Corporation--

HOUSTON -- Signature Hospital Corporation’s implementation of patient safety technology and application of Lean Engineering principles to improve patient care processes at its hospitals has produced two results: (1) improved patient safety and quality of care; and (2) a better bottom line.

“Providing the safest possible care to our hospital patients is a key component of Signature’s value system,” according to Charles R. Miller, President and CEO of Signature. “But the additional by-products of delivering safer and more efficient care have been lower costs and financial improvement for each hospital.”

Using its proprietary technology, the Signature Insights Engine, caregivers at Signature’s three hospitals are trained and encouraged to report each and every medical error or near miss. Real-time analysis through Insights allows the caregivers to very quickly make changes in care delivery that will result in fewer errors, with the ultimate goal being error-free care.

Taking a fresh look at the care delivery process is the primary purpose behind using Lean Engineering principles, which have historically been used in the manufacturing sector. “Insights is the fuel for the Lean engine in our hospitals,” stated David Spencer, Senior VP for Operations Development. “Insights helps us identify areas that need improvement, and Lean offers us the tool to improve the process in a way that has the greatest impact on delivering the safest, most streamlined, and most customer-friendly care possible.”

Using the Insights/Lean one-two punch, Signature’s hospitals have tracked the following impact in 2008 and 2009:

• 133% improvement in reporting of adverse events in the three hospitals
• 50% reduction in patient falls on the Lean demonstration unit
• 31% reduction in specimen labeling errors on the demonstration unit
• 41% reduction in urinary tract infections on the demonstration unit
• 7% reduction in labor costs on the demonstration unit
• 73% reduction in shift change time required on the demonstration unit
• Reduction of 15,000 miles of nurse foot travel per year in one hospital, allowing nurses to spend more time with patients at the bedside.

The above changes have resulted in more than $800,000 in financial gains in 2008 and 2009, with a payback period of just 1 ½ years. Additionally, the company expects to realize significantly more return on its investment moving forward as changes are adapted company-wide, and Lean principles are applied to more processes throughout the hospitals.

“We believe that Lean is the vehicle for achieving transformational change in our hospitals,” said Miller. “The way hospitals deliver care today is notoriously inefficient and has been primarily unchanged for the past 50 years. We’re convinced that nothing short of transforming delivery of care will ensure viability in the future.”

Signature executives are available to discuss Signature Insights and Lean Engineering. Contact Mary Ann Smokler at 615-469-4939 or maryann.smokler@signaturehospital-corp.com.

About Signature Hospital Corporation

Based in Houston, Texas, Signature Hospital Corp. is a privately held company founded in 2005 that is dedicated to providing affordable, state-of-the-art medical services to communities in which it owns and operates hospitals. Anchored by its mission to be the industry leader in adding measurable value to the delivery of healthcare, Signature backs its commitment to patient safety with Signature Insights, proprietary technology for measuring and improving quality in its hospitals. Signature presently owns and operates three hospitals: 115-licensed bed Pampa Regional Medical Center in Pampa, Texas; 161- licensed bed Gulf Coast Medical Center in Wharton, Texas; and 325-licensed bed St. Joseph’s Hospital, in Parkersburg, West Virginia. Signature’s board and management team boast more than two centuries of combined experience in healthcare management and finance. Signature’s financial partner is Goldman Sachs, the nation’s premier investment banking firm. For more information on Signature, please visit www.signaturehospital.com.