The emerging crisis in the health care industry demands that hospital administrators explore innovative management tools such as total quality management (TQM). Rising health care costs have made quality medical treatment inaccessible to a significant segment of the American public. Hospitals are faced with intense pressures to contain costs and improve service. A shortage of nurses and medical technicians as well as a startling number of hospital closures throughout the country have contributed to shrinking health care resources. In addition, hospitals face unprecedented competition from alternative types of health care facilities.
Increasingly, contemporary hospitals are meeting the external challenges of the marketplace by adopting TQM programs. TQM has been endorsed by the Joint Commission on Accreditation of Healthcare Organizations. Although the philosophy of TQM was developed for manufacturing firms, the basic principles of TQM can be modified to fit the needs of the health care industry.
The Contribution of W. Edwards Deming
TQM was developed by a number of American consultants, but the name most frequently associated with the concept is statistician W. Edwards Deming. While few American companies became early converts to TQM, the Japanese embraced the philosophy and methodology enthusiastically, and elevated Deming to the status of a national hero. The Japanese credit TQM with helping them to rebuild their postwar economy. After World War II, the Japanese economy was devastated and their country was occupied by Allied forces. During the 1950s, Deming promised the Japanese that their commitment to quality through TQM would not only restore their local economy, it would equip them with the means to compete globally. The Japanese followed Deming's advice, and their subsequent success made them ardent supporters both of TQM and Deming. In Japan, the most coveted annual price for industrial excellence is cal...