Just like any other organization, healthcare organizations do their business through processes, and any process can be studied and improved using basic Lean Six Sigma methods. The core value stream is built around having a patient arrive, receive treatment (or not), and then leave. The treatments vary, and how the entrance and exit take place will change from patient to patient and facility to facility, but the basic flow of entrance–treatment–exit is universal to healthcare. If the core value stream of a healthcare organization is to function properly, there has to be multiple support processes. These include the administrative functions that allow the hospital to run effectively and the supply chain operations that provide the needed supplies and equipment. Once you start looking at these processes, it becomes clear that there are many opportunities for applying Lean Six Sigma principles to make improvements.
Watch this informative video on healthcare application of Lean Six Sigma.