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Article: Beyond budgeting in an IDS: the Park Nicollet experience: is the traditional budgeting process worth all the time and effort that it requires? "There's a better way," was the conclusion of one large Midwestern integrated delivery system.(FEATURE STORY)
- Article from:
- Healthcare Financial Management
- Article date:
- October 1, 2006
- Author:
CopyrightCOPYRIGHT 2006 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Traditional budgeting is a thing of the past for Park Nicollet Health Services. The large IDS, serving greater Minneapolis, recently underwent a management transformation in which it embraced the Lean thinking and practices exemplified by the Toyota Production System. As part of this transformation, Park Nicollet eliminated its traditional budgeting process and moved "beyond budgeting."
Actually a term coined by management experts Robin Fraser and Jeremy Hope, beyond budgeting refers to an innovative, more flexible approach to budgeting that avoids many of the pitfalls of traditional budgeting. Fraser and Hope describe its underlying principles and concepts in ...