Hospital Council Of East Central Michigan Greg Paris, MHA

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If You Plan to Dance, It’s Time to Pretty UpHospital Council of East Central MichiganGreg Paris, MHACopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Today’s AgendaExamine Trends in the External EnvironmentReview the Impact of Culture on PerformanceIdentify 6 Core Competencies for Success2Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Two Things to Keep in Mind .Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Less is More.4Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

This Requires Different Muscles5Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

External Environment7 Trends That Will Drive PrioritiesCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

1. Doing Less With Less7Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Bricks and Mortar Make us VulnerableCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Prediction: “1/3 of Hospitals will close or reorganize by2020”Kevin Houle,Healthcare Speaker, Advisor, FuturistCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Over the Next Decade, Hospital Margins AreExpected to Decline SharplyHospital operating margins2.2%201120132015201720192021-16.8%With proposed reimbursement cuts,2.2% will become a 16.8% deficit.10Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Market Will Demand 20 – 40% Overall Improvement,Requiring a Multi-Pronged ApproachPerformanceImprovement8-12% TotalImprovementClinicalTransformation6-14% TotalImprovementMarket DriversPayment ReformInformation BoomCost PressuresImproved CareScale andIntegration4-8% TotalImprovementAssetRationalization3-6% TotalImprovement11Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Doing Less With LessIn the Boardroom . Track trends in key financial and operating metrics, including shifts inpayer mix, cash, staffing levels, turnover, and financial performance ofemployed physicians. Your current plan has to address revenue cycle and steps to reduce costper episode. Planning should assume scenarios under alternative payment systemsand how you will react to each. Waiting until a mandate comes will betoo late for many.12Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

2. Value Based Purchasing and Population Health13Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Value Based Purchasing and Population HealthVBP not in Rural today .or is it? BC/BS Alabama. California closed panels. MACRA and MIPs. Rural ACOs. CMS View of Rural.14Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Sec. Burwell’s Medicare Goals 30% of Medicare provider payments in APMs by 2016 50% of Medicare provider payments in APMs by 2018 85% of Medicare fee-for-service payments to be tied toquality and value by 2016 90% of Medicare fee-for-service payments to be tied toquality and value by 2018Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Value Based Purchasing and Population HealthIn the Boardroom Evaluate local and rural ACO opportunities in order to minimize risk andmaintain market presence. Start population health with small opportunities (think ER chronic pain)using care management. Involve primary care, for that is where CMS alternative payment modelsare headed and it’s the future of population health.16Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

3. Increased Consumerism and Transparency17Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Increased Consumerism and TransparencyIn the Boardroom Become a transparent organization. Post results in a public place,including your website. Compare your results to national benchmarks. Evaluate accountability throughout the organization as it relates toownership of performance across all aspects of the Triple Aim (cost,quality, and patient experience). Discuss increasing risks of heightened consumerism. Embrace thechange and innovate to take advantage of your size and how quicklysmall organizations can adapt.18Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

4. Patient Experience FocusVolume and Loyalty Matter19Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Patient LoyaltyIn the Boardroom Conduct a study of available providers and provider productivity vsbenchmarks. Review access - hours, wait times, and care methods inthe new world. Know market share performance and trends. Provide world class patient experiences. Differentiate yourself fromeveryone around you. Go for “Wow.”20Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

5. Heightened Awareness of Physician Alignment,Relationships and Burnout21Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Physician Alignment, Relationships and BurnoutIn the Boardroom Survey and monitor your relationship with providers. Develop trustthrough communication, input and appreciation. Respect their time.Hardwire best practices to increase their efficiency. Share performance data with each providers, including how theycompare with their peers. Develop compensation models to incentivize desired behavior (i.e.productivity, patient experience, cost containment, etc).22Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

6. Increasing Emphasis on Employee Engagement,Culture and Change Management23Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Workforce Engagement and an Emphasis on Cultureand Change ManagementIn the Boardroom Regularly survey associates for engagement. If turnover 10%, be surethere is a plan to lower it before it impacts quality. Discuss what your organizations culture looks like and feels like. Does ithang on the wall or walk in the hall? Train leaders in the management of change, the most important skill setfor leaders because of the constant change health care is going through.24Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

7. Management Agreements & Acquisitions25Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Management Agreements & AcquisitionsIn the Boardroom . Accept that independence is not the end goal. Neither is partnership. Evaluate potential partnership models with measurable goals and sharedvalues as part of the process. Create an “ideal partner” checklist. Knowyou will have to share your results. If you partner, know how autonomy will be affected and how yourorganization will have a “seat at the table” in the larger system.26Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Case StudyCulture’s Impact on PerformanceCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

My Hospital 12 Years Ago, as far as you know .Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

6 Core Competencies For SuccessCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Key Factors to Achieve High PerformanceCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

I. AlignmentCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Goals in year prior toStuder Group Coaching EngagementReduce Costs /Issue Improve FinancialPerformanceAchieve financialmargins of:– 4.0% in FY ’06– YTD 4.6%more detail –5.0% in FY ‘07Provider ofChoice ge patientsatisfaction scoresof:– 93.7 for “Overallquality ofcare/services”– YTD 93.5– 76.1 for “WouldGoalsyou recommend”– YTD 73.5Employer ofChoice (employeesatisfaction)Reduce overallturnover of:– “permanent”positions to11%– YTD 14%more detail – “permanent” coreRN positions to 13%– YTD 16%Improve Care(Quality, Safety,Effectiveness)Achieve 90%compliance with CMSmeasures:Community AcquiredPneumonia3 90% - 5 90%Surgical InfectionPrevention1 90% - 2 90%Heart Failure2 90% - 2 90%Acute MyocardialInfarction5 90% - 2 90%Achieve 90% compliancewith evidence-basedpractice for prophylaxis ofthe following: DVT/PE,Post-op UTI, Post-opPneumonia, Post-op AMI,Pressure Sores, Post-opCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorizationSepsisInformationManagement– ImplementEmployeeSatisfactionAssessment processduring 2005– Create projectedtimeline for theimplementation ofthe Advanced Pointof Care (APOC)clinical system

Leader Evaluation Results(Disconnect – 90% of leader evaluations, yetorganizational results were poor)Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Year 1 of Studer GroupPartnership – GoalsExcellenceServiceIncrease PatientSatisfaction(Inpatient)Goal PeopleReduceAnnualizedTurnover62ndCurrent QualityDecreaseMortality IndexGoal .77Current .7751stGoal 14.5%FinanceOperatingMarginGoal 5%Current 5.6%GrowthIncreaseInpatientAdmissionsGoal 2.7%Current 7.6%Current 16.7%Increase isfactionReduce FTEper AdjustedDischargeIncreaseOutpatientVisitsGoal 1.15Goal 62ndCurrent 1.15Goal 5%Current 8.0%Current 65thCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Leader Evaluation Results – Year 1(3 is hitting goal)Note: Percentages noted account for 93% of the leaders who have entered data as of 6.7.07.Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

II. Be Change Ready Even with positive change,there is nsciouslyunskilledUnconsciouslyunskilledCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Readiness for ChangeCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Readiness for Change37% of leadersdo not feel aneed for change.Slide 38Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

“People wish to be settled;but only as faras they are unsettled,is there any hope for them.”—Ralph Waldo EmersonCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Resistance to Change is Not an OptionCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

III. Self-AwarenessCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

IV. ConsistencyCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

V. FundamentalsCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

VI. AccountabilityCopyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

WHY45Copyright 2015 Studer Group. Please do not quote or disseminate without Studer Group authorization

Greg Paris, MHAInsert YourNational SpeakerPhoto Here641.680.8696Greg.Paris@Studergroup.com

Greg Paris, MHA National Speaker 641.680.8696 Greg.Paris@Studergroup.com Insert Your Photo Here

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