Measuring the Value of Change
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1 Measuring the Value of Change Money Atwal, CFO/CIO Randy Carson, President
2 AGENDA TOPICS 1 INTRODUCTIONS AGENDA 2 IT S ALL ABOUT CHANGE 3 ABOUT HILO MEDICAL CENTER 4 HILO MEDICAL CENTER S STRATEGY TO SUCCESS 5 VALUE MANAGEMENT 6 CASE STUDY 7 QUESTIONS & DISCUSSION Bainbridge Island, WA / Knoxville, TN 2
3 INTRODUCTIONS Money Atwal Chief Financial Officer Chief Information Officer HHSC East Hawaii Region Hilo Medical Center Hale Ho ola Hamakua Ka u Hospital & Rural Health Clinic B.S. Mechanical Engineering General Electric TLP (Advanced Degree) Six Sigma Black Belt EHR Implementations Epic Enterprise MEDITECH 6.x Randy Carson, FHIMSS, FACHE President & COO Health Systems informatics B.S. Industrial Engineering M.S. Engineering Management Past HIMSS Board Member ( ) Experience includes: Management Engineering Value Management Health Clinic Management Hospital Administration EHR Implementations Epic Enterprise MEDITECH 6.x Working Together Since 2003 Bainbridge Island, WA / Knoxville, TN 3
4 IT S ALL ABOUT CHANGE Measuring the Value of Change Bainbridge Island, WA / Knoxville, TN 4
5 IT S ALL ABOUT CHANGE Bainbridge Island, WA / Knoxville, TN 5
6 IT S ALL ABOUT CHANGE MUST USE NEXT EXIT Affordable Care Act (ObamaCare) Meaningful Use HITECH Act Looking at Interoperability through different lenses Accountable Care Quality & Value Based Payments Starting in 2018, payments are adjusted based on performance Physician Quality Reporting System (PQRS) Value-Based Payment Modifier which adjusts payment based on quality use of resources Bainbridge Island, WA / Knoxville, TN 6
7 IT S ALL ABOUT CHANGE Bainbridge Island, WA / Knoxville, TN 7
8 IT S ALL ABOUT CHANGE Choices or Bainbridge Island, WA / Knoxville, TN 8
9 CHANGE The only thing that likes change is a wet baby. Mark Twain Bainbridge Island, WA / Knoxville, TN 9
10 ABOUT HILO MEDICAL CENTER (HMC) The largest facility in the Hawaii Health Systems Corporation (HHSC) Largest employer on the island, over 800 employees Government Union(s): HGEA & UPW 276 licensed beds (142 acute care, 22 skilled nursing, 20 bed psychiatric, 112 bed extended care) 8,608 acute admission, 442 long term care Specialties/Services Emergency Services Level 3 Trauma Center (41,100 visits) OB/GYN (1,100 births) Surgery (3,200 patients) Oncology Intensive Care 9 Outpatient Clinics (29,800 visits) Bainbridge Island, WA / Knoxville, TN 10
11 ABOUT HILO MEDICAL CENTER (HMC) Safety-net hospital providingsignificant care to the uninsured, underinsured, and vulnerable populations. Service area: 100 miles Population: 111,217 people Medicare/Medicaid Payer Mix: 76% Per Capita Personal Income: $30,844 CMS Meaningful Use Stage 2 Attestation: Jan-Mar 2014 HIMSS Analytics Stage 7 EMR Adoption Model Bainbridge Island, WA / Knoxville, TN 11
12 ABOUT HILO MEDICAL CENTER Project Timeline Bainbridge Island, WA / Knoxville, TN 12
13 STRATEGY FOR SUCCESS Manage Major Initiatives (Project Management) Define expected outcomes for each initiative Process Improvement Baseline Current Performance Best Practice Gap Analysis Road Map Development Management tool in place Accountability Regular variance reporting Value Proposition on all significant Initiatives Bainbridge Island, WA / Knoxville, TN 13
14 VALUE MANAGEMENT valuetrax is a hybrid software and professional service that focuses on value generation and measurement based upon process improvement Key points of valuetrax are: 1 Measure Benefits, Costs and Accountability. Workflow Processes to measure the Fiscal Impact of Change. 2 3 Organizational Initiatives are the Drivers. Provides an Executive Dashboard and Busines and/or Clinical Analytics. 4 5 Designed for applications with both Capital Initiatives as well as smaller Operational Projects. Bainbridge Island, WA / Knoxville, TN 14
15 VALUE MANAGEMENT Deployment Components Stage I Assess Profile Initiatives Leaders/Owners Data Mapping Process Mapping Begins Stage II Implement Customization Training Stage III Manage Accountability Analytics and Dashboards Maintenance Bainbridge Island, WA / Knoxville, TN Proprietary to HSi Inc. and shall not be shared without express written consent from HSi
16 VALUE MANAGEMENT Basic Model Benefits TCC VOI Benefit KPI s Cost Reduction Value Based Supply Chain Benefit: Decrease Supply Costs Revenue Enhancement Decrease Payment Denials Benefit: Increase Revenue Quality / Regulatory Decrease Hospital Acquired Ulcer Rate Benefit: Improved Outcomes and Patient Safety Satisfaction Improved Employee Satisfaction Benefit: Reduces Hiring and Retention Costs Total Cost KPI s Vendor Costs Software 3 rd Party Etc. Organizational Costs Laptops Wireless Servers Etc. Ongoing Annual Maintenance Value Proposition Quantified Fiscal Impact Net Decreased Cost Net Increased Revenue Net Improved Quality / Safety Net Improved Satisfaction Bainbridge Island, WA / Knoxville, TN Proprietary to HSi Inc. and shall not be shared without express written consent from HSi
17 VALUE MANAGEMENT OPTIMIZATION Benefits Bainbridge Island, WA / Knoxville, TN 17
18 VALUE MANAGEMENT Metric Café Choose from a menu of hundreds of Metrics Financial and Non-Financial Each Metric has a detailed Target and Impact Assessment Methodology Agnostic Platform Interoperable with Major EHR s including Epic and MEDITECH Accountability Accountability reporting system that assigns and reports variances to every metric if desired. Bainbridge Island, WA / Knoxville, TN 18
19 CASE STUDY Hilo Medical Center (HMC) A Value Management Case Study GOAL: Make it Meaningful and Measuring the Value of Change. Bainbridge Island, WA / Knoxville, TN 19
20 CASE STUDY Pre 2009 Assessment Implementation of EHR Data Capture Current State Mapping Best Practice Design Gap Analysis/ Change Management Plan Data Mapping Targets Gross Benefits $34.3 M Target Total Cost of Change (TCC) $31.0 M Accountability Assignments Implementation Set up Customized Dashboards and Reporting Ongoing Management & Measurement 5 years 2014 Bainbridge Island, WA / Knoxville, TN 20
21 CASE STUDY Executive Dashboard Bainbridge Island, WA / Knoxville, TN 21
22 CASE STUDY Accountability Bainbridge Island, WA / Knoxville, TN 22
23 CASE STUDY Accountability Bainbridge Island, WA / Knoxville, TN 23
24 CASE STUDY Total Cost of Change (TCC) Bainbridge Island, WA / Knoxville, TN 24
25 CASE STUDY- Total Cost of Change Bainbridge Island, WA / Knoxville, TN 25
26 CASE STUDY Benefits Bainbridge Island, WA / Knoxville, TN 26
27 CASE STUDY Key Performance Indicators (KPI s) Bainbridge Island, WA / Knoxville, TN 27
28 CASE STUDY Metrics Bainbridge Island, WA / Knoxville, TN 28
29 CASE STUDY Metrics Bainbridge Island, WA / Knoxville, TN 29
30 CASE STUDY Processes Intelligence Bainbridge Island, WA / Knoxville, TN 30
31 CASE STUDY Processes Intelligence: Variation Mgmt. Bainbridge Island, WA / Knoxville, TN 31
32 CASE STUDY Hilo Medical Center Benefits TCC VOI Benefit KPI s* Cost Reduction Revenue Enhancement Quality / Regulatory Satisfaction Total Cost KPI s Vendor Costs Organizational Costs Ongoing Annual Maintenance Value Proposition (Net Benefits) $35,874,396 $31,890,769 $3,983,627 * Benefits achieved from EHR Installation / Stage 7 HIMSS Analytics / MU Stage 1 Attestation Bainbridge Island, WA / Knoxville, TN Proprietary to HSi Inc. and shall not be shared without express written consent from HSi
33 CASE STUDY Value On Investment (Cumulative) Benefits:$35,874,396 TCC:$31,890,769 VOI: Approx. $4.0M Bainbridge Island, WA / Knoxville, TN HMC VMO 33
34 Questions? Discussion Bainbridge Island, WA / Knoxville, TN 34
35 THANK YOU!
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