IT Transformation for Health Care

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1 Health Care strategy consulting to the country s leading hospitals and health systems. OVERVIEW IT Transformation for Health Care Transform IT develops a new target model to promote operational efficiency, accountability and financial transparency

2 Table of Contents Kurt Salmon Corporate Overview 2 Health Care Information Technology Overview 4 IT Transformation for Health Care 6 Representative IT Transformation Engagements 8 Page Kurt Salmon

3 Kurt Salmon Corporate Overview» Kurt Salmon, a part of the Consulting Group PLC, is a premier global management consulting firm offering integrated strategy, process and technology development solutions to the retail, financial services and health care industries.» Our 1400 professionals are based in the Americas, Europe and Asia-Pacific.» Health Care Practice: For over 60 years, Kurt Salmon has been a leading advisor to community hospitals, multi-hospital systems, children s hospitals, academic medical centers, physician group practices, and other provider agencies and organizations. > EXPERTISE: We work across all core practice areas strategy, facility/capital asset, information technology, performance and operations delivering unique expertise and value to our clients. > CLIENTS: Our client base includes more than 2,500 hospitals since 1947, and all of the U.S. News & World Report Honor Roll hospitals as well as 75% of the IMS top 100 integrated health networks. > RESULTS: Clients interests are put first, always. More than 70% of our work is from return clients. > TEAM: The majority of our dedicated professionals are senior-level practitioners. Page Kurt Salmon

4 Kurt Salmon Named a Leader in Gartner s Magic Quadrant Report Recognized as a Leader in Gartner s Magic Quadrant for Business Operations Consulting Services Worldwide for our: Industry expertise. Ranked first in market vision. Clients praised Kurt Salmon for its deep industry expertise and for speaking the language of the industry, highlighting the strong practitioner background of its consultants in addition to the company s formal consulting expertise. Client service. Ranked first in client centricity. Close attention to client needs, strong senior leadership relationships and a very practical approach are strengths. Transformational perspective, capable execution. Kurt Salmon s ability to move seamlessly from strategy to execution in multiple engagement scenarios is impressive. Page Kurt Salmon

5 Health Information Technology Kurt Salmon s consultants couple deep healthcare knowledge with cross-industry information technology expertise to guide our clients strategic and tactical planning Health Care Information Technology Strategy Facility/ Capital Asset Performance Improvement & Operations > Strategic & Tactical Planning > Vendor Selection & Contract Negotiation > Meaningful Use Readiness > Implementation Oversight > Infrastructure Planning > ICD-10 Preparation > IT Transformation > Business Intelligence > Outsourcing Evaluation > Technology Planning for New Facilities > Connecting Communities > Security & Privacy Compliance > Program > Interim Leadership We have unmatched knowledge of the vendor marketplace, product strategy and direction. With no vendor relationships or entanglements and offering no products, Kurt Salmon has the freedom to plan, advise and recommend with no real or perceived conflict of interest. Page Kurt Salmon

6 Manage Which of the cross-industry IT challenges are most pressing for you? Regulatory Compliance Executive Cut Costs Be More Efficient Standardize Be Secure Make IT Predictable Execute Flawlessly Enterprise Goals Orchestrate Growth Business Community Build New Capabilities Be More Responsive Customize Be Open Make Business Agile Think Strategically Business Unit Goals Distribute Technology Lifecycle Business Process IT Governance Virtualization Identity Improve Operational Capability Consolidate Automate Virtualize Optimize Improve transparency and manageability Spend Demand Investment Execution Excellence Secure Repeatable Auditable Complex, Heterogeneous Environment Page Kurt Salmon

7 How to Transform IT in the Health Care Industry? IT faces the ongoing challenge of increased demands and the expectation of optimal results, with fewer resources. To meet these objectives, substantial changes must occur. A holistic approach is recommended to achieve true IT Transformation.» Governance» IT / Business Alignment» Enhanced Collaboration» Reorganizing Staff» Contract Reviews» Targeted Outsourcing» Vendor Cutting Costs Improving Partnership Optimizing IT Operations» Best Practice Frameworks» Service Desk/Center» IT Skills» Agile IT Operations IT Transformation» Application, Project, Infrastructure Portfolio» Portfolio mangement system selection Streamlining IT Portfolio Rationalizing Systems and Services Providing IT Analytics» Data Analytics Services» IT Chargeback» IT Key Performance Indicators» CIO Dashboard Page Kurt Salmon» Enterprise Resource Planning» Electronic Health Records» Revenue Cycle» Centralizing IT Services

8 IT Transformation Program Kurt Salmon s Phased Approach Regardless of the context for change, our findings indicate that the key success factors for an IT Transformation program remain the same:» Select 3-6 specific IT Transformation topics to improve upon first. Only after success of the initial topics can the Transformation Program be extended» Define, implement and track clear key performance indicators (KPIs)» Ensure transparency on all initiatives, resource management and financial metrics» Obtain senior management sponsorship and assign dedicated internal resources Transformation is complex and requires defined expectations and dedicated time commitment which should be communicated across the organization. A phased approach is needed to successfully implement permanent change: Phase 1 Current State Assessment Phase 2 Transformation Target Model & Roadmap Definition Phase 3 Action Plan for IT Transformation Phase 4 Transformation Support A clear understanding of current state, various roles and responsibilities, high level processes and quick wins Define target operating model, guiding principles, agreed upon KPIs, transformation roadmap and streams establishment Start execution of the transformation through an actionable plan Full execution of the transformation program and transition to internal IT Page Kurt Salmon

9 Representative IT Transformation Engagements Cutting Costs Streamlining IT Portfolio Improving Partnership IT Transformation Rationalizing Systems and Services Optimizing IT Operations Providing IT Analytics Reorganization» Identify overlaps in staffing between centralized IT and departmental based IT resources» Propose opportunities for improved partnership and elimination of redundant roles Governance» Evaluate efficiency and effectiveness of current governance process and structure» Provide alternative governance models» Create action plan to implement new processes and structure Large Transformation Program across all IT» Develop charter for a large Transformation under new CIO to increase IT services in efficiency, accountability and transparency» Run five workstreams around Change, ITIL Framework, Request for IT Services, Project Intake and IT Finance/Procurement» Execute Transformation, establish Dashboards/KPIs and transition IT Transformation to internal team for continuous services improvement Page Kurt Salmon

10 Representative IT Transformation Engagements (continued) Cutting Costs Streamlining IT Portfolio Improving Partnership IT Transformation Rationalizing Systems and Services Optimizing IT Operations Providing IT Analytics Consolidation and Standardization» Migrate from multiple local hospital IT teams to central team as part of health system transition» Implement portfolio management practices» Recommend centrally managed services and support model Service Desk Sourcing Strategy» Evaluate Help Desk capabilities and identify gaps to Service Desk attainment» Model internal vs. outsourced Service Desk strategy alternatives» Determine requirements for providing Clinical Service Desk capabilities IT Chargeback Modeling» Evaluate and document current IT cost structures and services» Create a scalable chargeback model, based on best practices» Develop an implementation approach and phased roll-out plan Page Kurt Salmon

11 Contact KURT SALMON Advisors to the world s industry leaders Jeremy Cicurel, Practice Director CIO Advisory Kurt Salmon New York 650 Fifth Avenue, 30 th Floor New York, NY Page Kurt Salmon

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