Lean Management On Hospital Financial Performance: A Literature Review

Abstract

This literature review explores the financial impact of lean management adoption in hospitals. Hospital financial performance is typically evaluated by analyzing key performance indicators (KPIs) like profitability, liquidity, activity, and efficiency ratios. Lean management  is a strategy and philosophy for organizing work that focuses on maximizing customer value by eliminating waste (non-value-adding activities), increasing added value and continuously improving all processes. The review systematically analyzed peer-reviewed studies from databases including PubMed and Google Scholar, published between 2000 and 2025. The findings indicate that Lean Management leads to significant cost savings through enhancing operational efficiency. Lean management also focusing on waste reduction, streamlining workflows, and improving resource utilization. The review also highlights the importance to fully realize the benefits of lean management, healthcare providers should adopt a holistic approach that balances operational efficiency with patient care quality. The study concludes that lean management are a worthwhile strategic for hospitals aiming to improve financial health and operational efficiency.